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Fleet asset management refers to the method a company uses to track cars and other vehicles it uses for business-related activities. When a business must provide vehicles as part of doing business, being able to effectively handle fleet assets is critical to being successful. The best tips for fleet asset management include using fleet asset management software, maintaining the fleet, getting low-cost fleet insurance, and updating vehicles periodically.
A good tool for staying on top of the challenges of owning a fleet of vehicles such as cars, trucks, aircraft, and boats is to use fleet asset management software. Software can track the company's vehicles, keep up-to-date vehicle records, and track maintenance of the fleet. Software also provides a fast way to create reports to determine the productivity of company cars and other vehicles. Fleet management software also allows for accurate tax reporting.
Properly maintaining all vehicles is an important aspect of fleet asset management. Each person who is assigned a vehicle should be monitored to make sure that the vehicle receives regular cleaning and mechanical care. Supervisors and the corporate office fleet management team can perform this task. Vehicles that are not in good working order should be repaired or replaced immediately to maintain company productivity and revenues.
Effective fleet asset management also requires choosing low-cost fleet insurance. Fleets are considered part of the company assets and are taxed accordingly, so insurance costs must be kept to a minimum. Fleet asset insurance can be purchased from a variety of sources and may be offered as part of a company’s overall business liability insurance. The larger the fleet, the more cost effective the insurance has to be. When a small company wants to save money on fleet insurance, it may choose to own only a small number of company cars and require some employees to use personal vehicles and insurance for business travel.
Updating fleet vehicles regularly is important to fleet asset management because it ensures a company has a reliable fleet. Low-cost vehicles that get heavy usage, such as company cars, may be replaced every couple of years. Larger assets, such as aircraft, may be replaced much less frequently. As manufacturers produce vehicles with better fuel efficiency and warranties, companies benefit by buying new vehicles for their fleets. Older, less efficient vehicles can be sold or liquidated.