During economic uncertainty, senior management demands expense reductions and limits capital expenditures. Since fleet is usually among the top 10 corporate capital expenditures, there is pressure to defer vehicle replacements. However, this cost-containment strategy misses the point that all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. Cost reductions in acquisitions are often offset by rising costs elsewhere.
North Carolina Fleets Wasting Millions on Unused Miles
State agencies paid millions in leasing payments for miles they did not drive, and Gov. Beverly Perdue has called for a change state motor fleet rules.