Market insight shows that global fleet management had a value of $19.47 billion in 2020. Analysts expect it to grow at 10.6% per annum to reach $52.50 billion by 2030.
Businesses are adapting this popular method because of its cost efficiency. Some organizations lease fleets for short-term jobs, while others find it easier to manage their fleet.
Yet, the choice depends on the business’s primary objective. For instance, an organization in the shipping industry can’t do without a commercial fleet.
But what is a fleet vehicle? Join us as we answer the question in a lengthy discussion.
What Is a Fleet Vehicle?
A fleet vehicle is an automobile that is a part of a group of vehicles. In most cases, the fleet is owned by a large body.
Government agencies, co-operations, and organizations use these vehicles to transport people or goods. The automobiles range from cars, buses, taxis, trucks, and others.
Fleet Vehicles and Business Vehicles
Since business entities own all fleet vehicles, they fall under business vehicles. However, not all business vehicles are fleet vehicles.
This is because you can use business vehicles for personal reasons. Employees can operate fleet vehicles during work hours and for work purposes only.
Besides, tax depends on the usage and ownership details of business vehicles. At the same time, companies can use fleet vehicles for some legal tax loopholes.
Fleet Vehicles and Commercial Vehicles
Some fleet cars fall under the commercial vehicle category—for instance, heavy vehicles like Ford commercial trucks.
Heavy trucks owned by organizations form a commercial fleet. They are popular among the utility and construction industries.
But commercial vehicles don’t have to belong to a fleet. A company can own one or two trucks that don’t complete a fleet.
Buying Fleet Vehicles
You need to consider several things before purchasing a new fleet vehicle. First, identify the needs of the company. You’ll have to consider the functionality, accessories, and industry specifications.
Then, access your budget to check whether you can afford the fleet without disrupting business operations. After the purchase, ensure that you work with a fleet manager to ensure smooth running.
Purchasing is the best option for a company that needs fleet vehicles for the long term. This way, the organization has more say over its usage. Besides, you can lease out the fleet for extra income.
Leasing Fleet Vehicles
Leasing satisfies short-term fleet solutions for businesses. In the fleet industry, the short term can imply any time between 0 and 5 years.
Mileage and usage can vary within the period. Thus, it is cheaper to lease. More than that, you can avoid the service charges and other maintenance fees that come with owning a fleet.
What Is a Fleet Vehicle?
After this discussion on what is a fleet vehicle? We are sure you can differentiate between business, commercial and fleet vehicles.
Identify your company’s needs before deciding on whether to buy or lease fleet cars.
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