It will become more expensive to operate a fleet in the coming years. Vehicle acquisition costs will increase. Fuel prices, in all likelihood, will trend upward and maintenance costs will ratchet higher due to more companies adopting extended replacement schedules. In addition, vehicle-related taxes will increase. Let's examine the dynamics that will force fleet expenses to escalate.
In 2009, the Budget Business Program awarded nearly $2 million to small and mid-sized businesses for car rentals.
In 2009, of every $100 spent on fleet, $5 was consumed by taxes. This compares to $4.10 in 2006 and $3 in 1983. The recession has caused sales and property tax revenues to plummet creating widespread shortfalls in government budget funding. States and other governmental jurisdictions are scrambling to find new ways to generate new tax revenues. Again, commercial fleets are in their cross-hairs.
Cramer blesses Hertz and damns other car rental stocks for the wrong reasons.
Funding has prevented Nassau County, N.Y. to meet its goal of putting 178 police cars on the road each day.
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