According to a study released by GE Capital Fleet Services, companies that own their vehicle fleets report that they are challenged by capital expenditure limitations and the total cost of ownership of their fleets.
Nearly 200 CFOs and fleet managers with fleets of at least 300 vehicles were surveyed; respondents included both company owned fleets and those that lease fleet vehicles. The study found that more than half (51%) of companies that own their fleets cite capital expenditure limitations as their biggest financing challenge, compared to 11% of companies who lease vehicles. Two-thirds of respondents (66 percent) cite the reason for owning their fleets as tradition, or culture.
“Many companies report that they own their fleet vehicles because that’s the way things have always been done,” Mark Hayes, chief marketing officer, GE Capital Fleet Services. “Change management is a big concern for fleet owners; far more so than it is for companies that lease their fleets.”
“One challenge faced by businesses that own their fleets is management of total cost of ownership,” said Steve Jastrow, strategic consulting manager, GE Capital Fleet Services. “The decision to outsource certain operational activities is a complex one, as it’s often seen as a trade-off between maintaining control over fleet operations and managing activities in the most cost efficient manner.”
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