Higher Rates Could Hurt Residual Values

May 15, 2018
<p><em>Photo courtesy of Getty Images.</em></p> The Hidden Costs of Aging Fleet Equipment

Think fleet costs decline as equipment ages? If so, you’re only looking at some of the costs involved. Learn how a simple best practice can overcome this pitfall, and lead to win-win outcomes with customers beyond all expectations.

<p><em>Photo via Wikimedia Commons | User: AgnosticPreacherKid.</em></p> Higher Rates Could Hurt Residual Values

The Federal Reserve announced that it will be maintaining its forecast of two more hikes to the U.S. federal interest this year. Manufacturers may choose to absorb the higher rates on new vehicles, in order to keep prices from rising higher than they have been with heavier incentives, but this could have an adverse effect on residual values

<p><em>Photo courtesy of Getty Images.</em></p> Ways to Assess Rates When Funding Vehicles

In recent years, funding strategies for fleet vehicles (including both leased and financed) has been pretty straightforward. Funding rates have been low, and have remained relatively flat. Is it time to reassess?

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Used compact and midsize passenger cars held their value better than pickups and cargo vans in April, and overall vehicle depreciation eased due to a strong spring selling season, according to Black Book.

<p><em>Photo of Geotab Connect 2017 courtesy of Geotab.</em></p> Geotab Sets Speakers for Its Telematics Conference

A transportation and energy thought leader, mobility author, and data analyst will offer their insights during Geotab Connect 2018, a user conference and industry event hosted by the telematics provider.

<p><em>Photo of Mike Antich (left), editor and publisher of Fleet Financials, with the 2017 Fleet Executive of the Year&nbsp;Caryn&nbsp;Helmandollar&nbsp;by Eric Gandarilla.</em></p> 2018 Fleet Executive of the Year Call for Nominations

Fleet Financials magazine is now accepting nominations for the 2018 Fleet Executive of the Year Award. The deadline for nominations is June 1. The award is sponsored by The CEI Group.

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Mike Antich
Editor and Associate Publisher
Market Trends
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For the past several decades, procurement has emerged as the engine of change in fleet management, resulting in dramatic changes in asset acquisition and the supplier selection process. However, procurement underperforms in cross-collaboration initiatives with other corporate spend categories, such as Environment, Health & Safety (EHS) and supply-chain management. A key collaboration opportunity is in the area of fleet safety.

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Driving Notes
2018 GMC Terrain FWD SLT

Fleets searching for a compact SUV for upper-echelon sales reps may want to consider the 2018 GMC Terrain — a capable utility that arrives in a more upscale package that its companion Chevrolet Equinox.

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Ford F-150 Diesel in Colorado
Nissan offers its NV Cargo in three models, including NV1500, NV2500HD, and NV3500HD.
Nissan's 2018 NV Cargo Van
The 2019 Transit Connect cargo van will offer three engines that can run five fuel types.
Ford's 2019 Transit Connect Cargo Van
Donlen Hires SVP for Sales and Client Relations

Mike Antich
Associate Publisher and Editor
(310) 533-2467
Paul Clinton
Senior Web Editor
(310) 533-2565
Eric Bearly
East Coast Sales Manager
(303) 681-2615
Robert Brown Jr.
Great Lakes Sales Manager
(248) 601-2005