What Is a Fleet Vehicle?
On a busy stretch of highway, you’re bound to encounter more than a few fleet vehicles of many shapes and sizes.
Responsible for driving interstate commerce, fleet vehicles move people and goods from one destination to the next. In fact, many business owners rely on their fleets to engage with customers, transport inventory, and perform contracted services, all while professionally representing the brand.
Acquiring a fleet adds value to your business and introduces mobility and flexibility into your company’s existing structure. Explore what it means to operate and maintain a fleet, and discover the advantages and disadvantages fleet ownership offers. When you’re ready to take the next steps toward fleet ownership, you’ll already have a plan in place.
What Is a Fleet Vehicle?
Fleet vehicles are separate from personal vehicles in that they’re used primarily for business. Companies typically lease or purchase a fleet of vehicles to fit their needs, whether a few or several dozen (or more). As a business grows, it may add more vehicles or rotate out older models to maintain a steady number.
A fleet vehicle provides value across a wide array of industries. Employees drive fleet vehicles to perform various tasks, from meeting prospective clients to delivering goods or performing on-site services.
Some fleet vehicles sport graphics displaying the company’s name and purpose, while others simply resemble the average family car.
What Are the Main Types of Fleet Vehicles?
Some of the most recognizable fleet vehicles include delivery vans, large box trucks, and semi-trucks. However, they aren’t the only fleet vehicles available.
Below are a few of the most common fleet vehicles on the road:
- Retired rental cars: Rental car companies off-road dated models once they reach a particular odometer reading. Yet these retired rental cars take on new life as fleet vehicles for various businesses.
- Government-owned vehicles: Despite their basic trim packages, government-owned fleet vehicles are often driven by city, state, or federal officials.
- Company cars: Businesses often offer their top executives a company car, especially for positions requiring frequent travel to speak to shareholders.
- Dealer-owned vehicles: Dealership management personnel often drive demo models or loaners to advertise their business and entice potential customers to visit for a test drive.
Businesses can source fleet vehicles directly from automotive manufacturers or by bidding on government vehicle auctions. Automotive manufacturers will build sets of fleet vehicles to sell exclusively to companies.
Examples include GM Envolve’s government fleets, Ford Pro’s State and Local Government Sales Program, and the Stellantis Fleet & Business Solutions Government program.
What Does Owning a Fleet Vehicle Entail?
Owning and maintaining a fleet is no small task. Before acquiring one or more fleet vehicles, review the following elements of fleet management, which are critical to the longevity of your transportation resources.
Regulatory Compliance
Similar to personal vehicles, fleet vehicles must abide by the same rules of the road as determined by the Department of Transportation. These regulations include passing safety and emissions testing for registration and licensing.
Business owners must also obtain insurance coverage and any permits associated with their daily operations.
Predictive and Preventative Maintenance
Since fleet vehicles tend to travel more miles than the average personal vehicle, proper maintenance is vital to keeping your fleet on the road.
While preventative maintenance can ward off most unexpected breakdowns and repairs, safeguarding against unplanned downtime also requires predictive maintenance. Fleet owners can invest in predictive maintenance programs to help manage their fleet’s maintenance protocols and avoid costly service interruptions.
Fuel Management
Managing a fleet's fuel consumption requires addressing multiple facets. The International Fuel Tax Agreement (IFTA) requires fleet owners to track fuel purchases and interstate travel to contribute their corresponding fuel taxes.
Working with a fleet management firm like Cadence connects business owners with the necessary resources to allocate fuel-related funds effectively.
What Are the Pros and Cons of Fleet Vehicles?
Unsure if fleet vehicles are right for your business? Explore the advantages and disadvantages below to determine if your business can benefit from adding fleet vehicles.
Pros
Fleet vehicles can offer some great advantages, like:
- Increased mobility and flexibility in engaging with customers
- Multiple varieties available based on individual needs
- Prime avenue for promotional branding
- Serves a wide variety of industries
- Hybrid or electric options are available
- Company perk for loyal employees
- Integrates scalability into any business model
Cons
That said, there are also some potential downsides to keep in mind. These include:
- Maintenance and fuel costs can be high
- Requires proper management to protect longevity
- Upfront investment that may drain cash reserves
- Little, if any, resale value
- Insurance premiums may be higher
- Strict tracking procedures required for upkeep
- Unexpected repairs can cause costly downtime
What To Consider Before Purchasing Fleet Vehicles
Before you start shopping for fleet vehicles, take a moment to answer a few critical questions and direct your search efforts.
Review the following elements to identify the best fleet vehicles for your business and inform your final purchase:
- Budget: Most companies lease or purchase fleet vehicles. Leasing requires lower startup costs and typically includes maintenance, while owning fleet vehicles initially costs more, but gives you greater flexibility.
- Number: Business needs often dictate the number of fleet vehicles required, which typically must fit within budget constraints.
- Purpose: Put simply, what will you use your fleet vehicles for, and how will that affect what types of fleet vehicles you seek out?
- Type: Fleet vehicle types include passenger cars, delivery vans, half-ton pickups, and semi-trucks, among many others. Which type best fits your business needs?
- Characteristics: A discussion of fleet vehicle type often leads to one of desirable features, such as towing capacity, cargo area, or fuel type (gas, hybrid, or electric).
Cadence’s fleets and transport services provide fleet owners with a comprehensive suite of benefits, from fueling services and employee training to quality lubricants and customer retention programs.
Our services cater to fleets of varying sizes and scale with companies to continually support future growth and foster unparalleled success. Contact us to learn more about how partnering with Cadence can boost your fleet’s longevity for the long haul.
Fuel and Maintain Your Fleet With Cadence
Partner with Cadence to protect your company’s investment in fleet vehicles. Gain access to valuable resources at our convenient locations throughout the central and eastern United States.
Call us at 336-629-2061 to discuss your fleet needs with a qualified Cadence representative today!
Sources:
Government vehicle auctions | USAGov
Government Fleet Vehicles: Sales and Lease Info | GM Envolve
Government Fleet Vehicles and Police Cars | Ford Pro™
Local, State, and Federal Government Vehicles | Stellantis Fleet & Business Solutions