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Market Trendsby Mike AntichSeptember 6, 2005

The Emergence of e-Plates to Track Fleet Assets

I enjoy following the fleet management industry in the UK since it is among the most sophisticated in the world. Innovative trends often first appear in the UK, which makes for interesting conjecture as to whether they may be a prelude to what might emerge in the U.S. fleet market. One recent development was a controversial decision to test radio frequency identification (RFID) chips embedded in the license plates of vehicles. The UK Ministry of Transport gave the official go-ahead in August

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Market Trendsby Mike AntichAugust 23, 2005

Using Targeted Production Weeks to Maximize Resale Values

The majority of fleet managers place new-vehicle orders with the expectation that these units will be built and shipped based on normal lead-times. However, a growing number of fleets, especially larger fleets, are using targeted production weeks (TPW) as a fleet planning tool when placing new-vehicle orders.

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Market Trendsby Mike AntichAugust 16, 2005

The Right Pricing Strategy is the Key to a Successful Employee Sales Program

There is a renewed emphasis on maximizing remarketing dollars following the dramatic declines in resale values that have been occurring over the past three years. Although purchasing and negotiating skills are crucial, the skill that continues to set apart exceptional fleet managers is their remarketing expertise. One remarketing channel receiving increased attention is internal remarketing or the sale of company vehicles to employees.

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Market Trendsby Mike AntichJuly 22, 2005

Governors Fear DMV Costs Will Increase With Implementation of Real ID Act of 2005

The recently enacted Real ID Act requires states to verify that applicants for a driver’s license or renewal are who they say they are. Unless state-issued driver’s licenses meet these new federal standards by 2008, the federal government will not accept them as identification to board a plane, train, or other venue in which the federal government requires the presentation of a photo ID.

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Market Trendsby Mike AntichJuly 12, 2005

The Tax Consequences of Driver Reimbursement

When a company adopts a driver reimbursement program, it shifts all costs to the employee. The problem, from a tax view-point, is that if not handled correctly, reimbursement payments to employees can be considered taxable income by the federal government and some states. For instance, a monthly vehicle allowance is taxable to the employee, and the company is subject to its portion of FICA tax. The net result is that the employee’s combined state and federal tax burden will increase, which, in t

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Market Trendsby Mike AntichJune 21, 2005

Public Sector Fleet ManagementVehicle Overloading Is Expensive & Dangerous

In public sector fleet operations, the number-one cause of overloading is when a vehicle is not used for the spec’ed application. In other situations, overloading is intentional, as is sometimes the case with garbage trucks. In these instances, drivers overload vehicles to minimize the number of runs needed to offload the collected garbage. Overloading also occurs due to operator ignorance. For example, as parks and rec-reation truck may be spec’ed to haul a certain volume of grass cuttings, but

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Market Trendsby Mike AntichJune 6, 2005

Are FAVR Reimbursement Programs Non-Compliant with Sarbanes-Oxley?

There are three types of payment plans utilized to reimburse employees who drive their personal vehicles for business use. They are fixed payments (a monthly allowance), variable payment (cents per mile), and fixed and variable reimbursement (FAVR).

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Market Trendsby Mike AntichMay 31, 2005

Electronic Titles are Revolutionizing Fleet Vehicle Title Processing

An electronic lien and title system, or ELT, is the technology that allows vehicle titles and lien information to be transmitted electronically, much like e-mail, to and from state motor vehicle agencies and lien holders, such as fleet management companies. An ELT is also known as a “paperless title” or e-Title. Ultimately, ELT products and services will make traditional vehicle title processing obsolete, since electronic vehicle titles can be stored, transmitted, maintained, and corrected elect

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Market Trendsby Mike AntichMay 24, 2005

Why the High Cost of Fuel Will Have Minimal Impact on 2006 Fleet Selectors

Fuel is fleet’s second highest cost, and the dramatic run-up in fuel prices has negatively impacted all fleet operations. Although the high cost of fuel has wreaked havoc on fleet budgets and has caught the attention of senior management, it will have minimal impact on vehicle selection for 2006-model fleet selectors. Why? Most fleet managers say that fuel is only one part of the overall lifecycle cost analysis. Although fuel is their second highest expense, depreciation remains the number-one c

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Market Trendsby Mike AntichMay 16, 2005

Commercial Fleet Buying Intentions for the 2006-MY

In late April, AF conducted a survey of 80 commercial fleets to gauge fleet buying inclinations for the 2006-model year. The survey revealed that new-vehicle fleet order volume is anticipated to be as good as 2005-MY or better.

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Market Trendsby Mike AntichMay 10, 2005

Trends in Medium-Duty Truck Sales for 2005-06

While record-high gasoline and diesel prices are softening light-duty vehicle sales – especially large SUVs – sales of medium-duty trucks continue to surge. Demand for commercial medium-duty trucks has been on an upward trajectory since 2003.

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Market Trendsby Mike AntichMay 3, 2005

Medium Truck Tire Shortage Unintended Consequence of 2007 Diesel Regulations

There is record demand for medium truck tires and a corresponding shortage of supply. Besides the cyclical upturn in truck sales, the increased demand is also being fueled by the upcoming 2007 diesel emission standards.

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