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Market Trends•by Mike Antich•July 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 Trends•by Mike Antich•June 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 Trends•by Mike Antich•June 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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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Market Trends•by Mike Antich•April 26, 2005

A Paradigm Shift to Driver Risk Management

A growing trend among commercial fleets has been the shift toward driver risk management versus traditional fleet accident management. “This is really a paradigm shift for the industry because it represents the next frontier where fleets can extract significant cost reductions,” said Art Liggio, national director, risk and insurance services for The CEI Group.

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Market Trends•by Mike Antich•April 19, 2005

Public Sector Fleet Management Stricter Enforcement Needed of Take-Home Vehicles

Take-home vehicles have been controversial for years, but recently, they have come under even closer scrutiny at a number of jurisdictions. For instance, Rockland County in New York clamped down on the number of government employees assigned take-home county-owned vehicles. For years, department heads could determine who got to commute to work in a county vehicle.

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Market Trends•by Mike Antich•April 5, 2005

Top Trends Fleet Accident & Driver Risk Management

These include increased Internet-enabled real-time communication, new technology applications, increased cost of replacement parts, and, perhaps most importantly, a growing shift toward focusing on driver risk management.

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Market Trends•by Staff•March 29, 2005

Top 15 Trends in Truck Fleet Management

Proliferation of Onboard Technology in Trucks The computing power contained in a truck will be tapped in increasingly creative ways.

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