10 Myths about Fleet Management (Part 1)

10 Myths about Fleet Management (Part 1)

Fleet management can be a surprisingly misleading world that is frequently misunderstood and often misjudged. So here we take a look at ten of the most common misunderstandings of this profession and explain just why there are such misconceptions.

Fleet management is anything but a full time job

Fleet management is a difficult, challenging job that places plenty of demand upon its role holder. However despite this many think that fleet management is a job that can be handled within part time hours. Few really grasp that the average fleet manager must work with a plethora of employees, often being required to work outside of standard office hours and undertaking tasks that really fall outside of their job description (such as advising employees on selling or buying vehicles privately).

Fleet management is anything but a full time job
Vehicles should be amortized on 50-month schedule (or 2% per month)

Vehicles should be amortized on 50-month schedule (or 2% per month)

Perhaps it’s because it’s a nice, straight forward figure, or perhaps this notion started some time ago when it may have been relevant, however whatever the reason the 2% per month rule is not only misleading, but moreover wildly impractical.

Instead fleet managers should always focus upon the aim of reducing capitalized costs that truly reflect the market value at the point of replacement. Such amortization dates will then vary greatly from situation to situation and from company to company.

Accident fault is the same as chargeability

It’s been frequently found that too many fleet managers base chargeability upon whether or not the accident is the fault of the driver. In such instances they then overlook the fact that drivers should always drive defensively, which remains true even where the accident may be the fault of another.

Accident fault is the same as chargeability
Reconditioning always devalues a vehicle

Reconditioning always devalues a vehicle

Many felt mangers believe re-condition to always devalue a vehicle. However, whilst in many cases this is true (and particularly applies to providing a vehicle with a complete makeover) undertaking minor reconditioning tasks can actually increase its value. This includes work that will help the vehicle in selling more quickly (after all, time is money, regardless of the area of business in which you work).

Drivers aren’t bothered about fleet costs, after all it isn’t their money

All too often employees are done a disservice as management presume that they don’t care about the tools and vehicles at their disposal. However this is far from typical and in actuality the majority of employees will recognise that what is good for the business is good for the bottom line and consequentially for their job prospects.

Drivers aren’t bothered about fleet costs, after all it isn’t their money