Funding options

Article Abstract:

Entering the motor trade on a part-time basis can be very risky for any company engaged full-time in another line of business. Firms are advised to focus on their core businesses, instead of branching out into motor trading, because buying, running, and selling used fleet cars can cause a lot of problems. Aside from requiring a relatively large capital, difficulties associated with fleet management, such as administration, personnel problems, and accidents, can arise. Because of the many risks involved in acquiring a car fleet, companies should be familiar with the various ways by which they can raise capital. Two of the better known methods are operating leasing, also known as contract hire, and finance leasing.

New and used car dealers, Methods, Options (Finance), Automobile dealers, Financial management

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Replacement cycles

Article Abstract:

British companies are reducing their company car fleets as a cost-saving measure in the face of a recessionary climate. Many are also extending the replacement cycles of their company car fleets as a long-term strategy for containing costs. A recent survey shows that average replacement policies on time have changed from 33.4 months in the first half of 1990 to 36.2 months for the same period in 1991. Experts, however, warn that the extension of replacement cycles may not necessarily prove to be a cost-effective strategy as increased maintenance costs may offset any gains made.

Automobiles and other motor vehicles, Motor vehicle fleets, Fleets (Automotive), Automobiles, Company, Company cars, Depreciation

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Used cars

Article Abstract:

The prevailing unfavorable economic climate is benefiting the used car market. The business community is starting to appreciate the merits of buying quality used cars instead of new models. The purchase of used cars offers certain financial gains, including savings on value-added tax, and a lower depreciation rate. Old cars also make a statement for business executives who want to emphasize the need for a more thrifty corporate lifestyle.

Usage, Business enterprises, Used cars, Used automobiles

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