In business, market timing is a critical element of success. Acting upon strategic business opportunities at the most decisive moment offers the best advantage against competition. Fleet Advantage provides clients with time-sensitive market intelligence that can make the difference between an opportunity seized or missed.
Forward thinking companies are reevaluating outdated, traditional, business-as-usual fleet practices and are embracing bold lifecycle decision making based on real-time, dynamic data and its convergence with market timing opportunities. For example, in the past, a 7/8 year/700,000 to 800,000 mile lifecycle was common practice. To guarantee Lowest Cost of Ownership, it is essential to consider the demand for used trucks (which drives residual values), market intelligence on new maintenance and fuel saving technologies, and financial market-timing opportunities based on cost of funds and accelerated depreciation benefits.
- Truck resale values are at their highest point in decades. If a company is in possession of high demand vehicles there is financial opportunity to sell and replace them now and profit from the high resale prices while at the same time capitalizing on technology advancements to achieve better fuel economy, performance, safety and environmental efficiency through new clean diesel technology.
- Accelerated Tax Benefits have been extended in order to stimulate the economy: 100% bonus depreciation in 2011 and 50% bonus in 2012.
- Lowest cost of funds can tip the scales toward acquiring new equipment sooner rather than later.
- Aggressive OEM discounting from manufacturers vying for market share is available for larger new truck orders.
- Recently enacted government regulations mandate substantial Class 8 fuel economy improvements. Payback period for the additional cost of a new vehicle will recover the cost of a new vehicle with only a 1% compounded annual gain in fuel efficiency while experts are predicting up to a 4% compounded annual growth rate.
- Consumer demand for eco-efficiency (and the transparency of the Internet) is compelling Fortune 500 private fleets to address environmental responsibility in their truck fleet. Their distribution fleets serve as visible and prolific billboards that can reflect the wisdom of their fleet practices and responsible corporate stewardship.
