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== Disposition of Used/Pre-Owned Car/Vehicle == | == Disposition of Used/Pre-Owned Car/Vehicle == | ||
| + | Disposition of Used/Pre-Owned Car/Vehicle | ||
| + | • Most fleet managers understand that leveraging various remarketing channels may provide for increased residual value and, if employee sales are allowed may provide for enhanced employee relations and lower maintenance due to the fact that the driver usually takes better care of the vehicle if they have an opportunity to purchase at termination. | ||
| + | |||
| + | Are employee sales allowed ad if so is it open to all employees or just the driver ? | ||
| + | How is the selling price determined ? | ||
| + | Are all monies collected up front and are taxes fully understood by employees ? | ||
| + | Are any warranties provided or expected ? What assumptions are made and by whom ? | ||
| + | If employee sales are not allowed or no one is interested then what is the best remarketing channel ? | ||
| + | When are vehicles to be turned in and when ? Are signed receipts required ? | ||
| + | If employee sales are allowed, are safeguards in place to prevent or detect potential "packing" of repairs or maintenance items. An example would be the vehicle had all tires and brakes replaced 10,000 miles ago but prior to the employee sale they were replaced again. The sale of vehicles should be contingent of "as is - where is" Significant prior repairs may require a vehicle cost adjustment. The same may be regarded for recently found body damage. | ||
== Personal use of a Company Car/Vehicle == | == Personal use of a Company Car/Vehicle == | ||
Revision as of 02:21, 30 January 2007
NAFA's Guide to Fleet Vehicle Policy Development
This is the current working draft of NAFA's new book on fleet policy development. All changes and additions must be made before March 1, 2007, when this forum will be closed and the draft will be sent to the editorial committee. Please log in to contribute or create a user name for yourself by clicking the link in the upper-right of this page.
Introduction to Fleet Vehicle Policy Development
• This guide will provide a unique insight and assist the user with a multidimensional understanding of vehicle policies, their development and caveats associated with situations that may not have been considered at the time of inception. While some of the questions posed may appear to be extreme in nature, they nonetheless illustrate real situations that have and will continue to occur in real world applications. It is vital that the fleet manager, whether reviewing existing policy or developing new ones, be cognizant of questions and consequences that need to be fully understood prior to implementation.
Overview of Fleet Policies & Procedures
• As policies may be specific to particular vehicles and applications, so too, may they be specific to the company or government agency that is responsible for the vehicle. Many times two different fleet managers will develop the same policy but they are expressed in completely different ways. This may be a result of the style of the writer and as much if not more so the desire to blend the essence of the message to mirror existing company or agency policy in structure and tenor. This guide will not provide instruction on how to write policies and procedures, but rather is will provide suggestions which will enable the fleet manager to construct clear and effective communication. When establishing a new policy or procedure the fleet manger may realize an advantage to concentrate first on the substance, expressing the message clearly, then to craft it into the profile of other communication that is in place with the Company. In this method the fleet manager concentrates on the substance first and then integrates the communication into a style consistent with other company or agency communication. After reviewing this guide, the fleet manager may realize that there may be significant opportunities to protect the safety and well being of the employee, the company and the equipment.
Eligibility for Company Car/Vehicle
Eligibility for Company Car/Vehicle • The eligibility for a Company vehicle may be predicated by a variety of reasons including but not limited to:
Need based. The vehicle is assigned to a driver because it is an integral tool in the performance of their job. This may include a sales representative, a technician who may be on call after hours, a specialized or officer of rank, or other such scenario. This may or may not provide for take home privileges. Non-need based. This is typically reflective of senior management or special performance-based recognition in which the vehicle is not an integral part of that person's job requirements. In this instance the type, cost, level of equipment and term of eligibility may vary widely from company to company. Prior to implementing new policy in this area, The fleet manager will eliminate a significant amount of angst to ensure senior management has reached an absolute consensus regarding the specifics of and potential loss of eligibility.
Use of a Personally Owned Vehicle
Use of a Personally Owned Vehicle • Will the use of a personal vehicle be authorized and compensated for to make occasional business specific errands ? Will a personal vehicle be used each day to go to the post office box before arriving at the corporate office each morning ? While these examples may be at the extreme end of the spectrum, these scenarios clearly exist. If a crash or loss were to occur have expectations been clearly spelled out and understood ? Have the following concerns been addressed :
Does the employee understand that they will need to notify their automobile insurance carrier of the frequency or annual work related mileage which may result in a raise in their insurance premium ? Has your company established minimum insurance levels which may be significantly higher than that of which the employee would typically have in force ? Does the employee understand that regardless of a flat rate or per mile compensation, they will be responsible for all maintenance, repairs and losses due to crashes and other occurrences ? Has your company established minimum standards regarding the exterior and mechanical condition of a personal vehicle used for business purposes ? As one can well imagine, given the nature of the position and many other factors this point is akin to the dress code of a specific company and the clients that they interact with on a routine basis. How will this be enforced ? If the employee's vehicle experiences downtime due to significant repair, does the employee understand that they will need to bear the cost of a rental vehicle regardless of their compensation ?
Authorized Cars/Vehicles & Optional Driver-Paid Equipment
Authorized Cars/Vehicles & Optional Driver-Paid Equipment • Similar to who is eligible for a company vehicle, The breadth and depth of vehicles and optional equipment can quickly be daunting unless controls are established.
Who can, and specifically who cannot drive a company vehicle ? Are there exceptions and how are they addressed ? If an employee is assigned a vehicle and it is taken home and parked in the driveway Friday evening, Saturday morning the employee's son with a valid drivers license wants to shoot basketball in the driveway and moves the car and backs into the neighbor's mailbox, what are the consequences ? Can the spouse of the employee use the vehicle to make a quick run to the store ? Is the employee allowed to take the vehicle on a vacation with his family ? Is he required to pay the company mileage for personal use ? If the answer is yes (according to clear IRS guidelines) who manages this process and makes the payroll deductions ? Does the Company or agency have a selector list of multiple vehicles or different trim levels based on specific criteria ? Are driver paid options or upgrades allowed ? If a driver pays for an upgraded stereo and sunroof and is either demoted, fired or losses their license two months after receiving the vehicle, how will this be handled ? Are the cost of driver paid options collected in full prior to the vehicle order being placed ? Was an agreement signed ? Is a driver allowed to install items such as a trailer hitch, roof luggage rack, dark tinted windows or bodyside moldings ? Are vehicles allowed to have bumper stickers, license frames, after market fog lights, remote starters or other equipment ? If this is allowed are the employees free to install items themselves which may possibly involve electrical connections or drilling into surfaces ?
New Car/Vehicle Delivery
New Car/Vehicle Delivery • When a new vehicle is ready for pickup at the dealer, or is delivered directly to the driver by other means, is the driver expected to perform the following activities ?
Perform a walk-around inspection of the vehicle and ensure that it does not have any damage and all optional equipment is in place and functional ? What is the chain of communication if discrepancies are identified ? Will the driver need to register the vehicle or perform an activity to assist with the registration process ? Are all parties clear what expectations are ? How and when is the driver to advise the fleet manager that the new vehicle is on road ? This may impact insurance coverage, billing, and or warranty start dates for both the vehicle and any upfitting. This may also trigger a “watch clock” on license and registration activities and internal accrual for accounting purposes.
Car/Vehicle Replacement
Car/Vehicle Replacement • Vehicle replacements may be decided by one or more of the following factors: mileage, age, mechanical or cosmetic conditions, suitability for a particular purpose or application, promotion or demotion, accident or other factors. The fleet manager may initiate some replacements while other replacements are communicated to the fleet manager by other members of the organization. Are replacement parameters clear and understood by all parties ?
Disposition of Used/Pre-Owned Car/Vehicle
Disposition of Used/Pre-Owned Car/Vehicle • Most fleet managers understand that leveraging various remarketing channels may provide for increased residual value and, if employee sales are allowed may provide for enhanced employee relations and lower maintenance due to the fact that the driver usually takes better care of the vehicle if they have an opportunity to purchase at termination.
Are employee sales allowed ad if so is it open to all employees or just the driver ? How is the selling price determined ? Are all monies collected up front and are taxes fully understood by employees ? Are any warranties provided or expected ? What assumptions are made and by whom ? If employee sales are not allowed or no one is interested then what is the best remarketing channel ? When are vehicles to be turned in and when ? Are signed receipts required ? If employee sales are allowed, are safeguards in place to prevent or detect potential "packing" of repairs or maintenance items. An example would be the vehicle had all tires and brakes replaced 10,000 miles ago but prior to the employee sale they were replaced again. The sale of vehicles should be contingent of "as is - where is" Significant prior repairs may require a vehicle cost adjustment. The same may be regarded for recently found body damage.
