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Customised Fleet Solutions in uncertain times
Keep it? Sell it? Lease it? Own it? These are just some of the questions fleet owners would have been asking themselves over the past couple of months.
Large fleet or small, the spotlight always turns to the cost of running vehicles during tough times and the right thing to do always depends on your circumstances. Here are a few thoughts to help you make the right choice.
Keeping the fleet you have sounds sensible when you’re looking at cost out, but you need to make sure the cost to keep it safe and sound on the road through servicing, maintenance and repair, doesn’t exceed the cost to replace. Look at this on a vehicle-by-vehicle basis with decisions based on the age and mileage of each vehicle, how long you want to keep it for, what it will be doing while you retain it and the potential cost of ongoing maintenance. Like humans, cars tend to need more visits to the doctor as they get older and begin to show more wear and tear.
If you have a larger fleet you could look to swap and move your vehicles to different drivers and locations to optimise their usage. You may have roles within your business where vehicles do less kilometers and maybe get an easier life, so some of your older vehicles may suit.
Above all else, if you’re going to keep it, look after it and make sure it gets a regular health check. At AHG NZ we have 13 modern and efficient service, parts and tyre centres conveniently located across Auckland to help you do just that!
The decision to sell your vehicle depends on what type of car it is, how much depreciation it is likely to experience in the future, the difference in price between what you paid and what it is reasonably worth in today’s market, whether it has any upcoming major costs (e.g. tyres or registration) and its actual value. There are also seasonal and economic variations that come into play. AHG NZ can help by giving you an accurate valuation of your vehicle to see whether it is the optimal time to sell. You can talk to any one of our nine Auckland dealers who will be happy to offer you the right advice.
Own it or Lease it? Though the decision to lease or buy a car has financial implications, money isn’t the only factor you should take into consideration before you do the deal. As with all things, it comes down to circumstances and choice. Leasing a vehicle gives you lower monthly payments and a fixed monthly rate based on the depreciation of the vehicle. If you choose a fully maintained operating lease, it takes away the risk of maintenance costs and repairs. You get to drive a new car every 3-4 years and you don’t have the hassle of trying to sell the car at the end of the lease, you simply hand it back.
Owning a vehicle means you pay less over a longer term, if you decide to keep the vehicle for several years. You have the option to sell the vehicle at any time as you are not locked into a contract and you have no limit on the mileage you travel. Lastly, when you own it, its up to you how you treat it so there’s no restrictions on appearance. The key is to determine what factors matter to you most.
At AHG NZ, our experienced Fleet professionals can help you find the right solution for your business.
Keep it? Sell it? Lease it? Own it? Talk to AHG NZ today to help you make the best informed decision.
David joined AHG NZ in October 2019 with more than 36 years of experience in the automotive industry, the last 25 in Fleet Management & Leasing. David is a qualified technician and spent a number of years in the dealer space before moving into the vehicle leasing industry where he held a number of senior roles across Operations and Sales.
David oversees the Fleet team across AHG NZ dealerships; John Andrew Ford, John Andrew Mazda, North Harbour Ford, North Harbour Mazda, West Auckland Nissan, Manukau Nissan, Davie Motors Holden & HSV, Manukau Hyundai and Auckland Motors Mitsubishi.