As a business with company-owned vehicles, getting attached to them is common, which is normal. The vehicle can come in handy when transporting goods to and from customers. Company-owned vehicles are also time and money savers plus attract tax and insurance advantages.
But as the popular says, "There's time for everything." So the company can't have the vehicles forever as the time comes to dispose of the company-owned vehicles. It could be that the company needs more reliable vehicles, or it is a shabby-looking car that taints your image negatively among customers.
If you're disposing of the vehicle, you must be ready to face some challenges. What are the challenges to expect when disposing of company-owned vehicles?
This guide explains 3 disposition challenges you're likely to face with your company-owned vehicles.
-
Choosing the Right Time to Dispose Of the Vehicles
One of the 3 disposition challenges to expect when choosing the right time to let go of the vehicles. Remember, apart from convenience, the cars could be the only hope of succeeding in the business. But then a decision has to be made whether to keep or dispose of them.
The right time to dispose of company-owned vehicles will depend on their age, condition, market, and use. For example, if the fleet maintenance costs keep rising because of their bad condition, it could be the right time to make the disposing decision.
Alternatively, if the company-owned vehicles can't meet your business needs, it is time to dispose of them. You can't have vehicles but keep hiring others to meet your demands. For example, if the vehicles are too small to handle the kind of goods you deal in, you might be forced to hire bigger ones. Moreover, if there is a ready market, don't waste time but dispose of the vehicles.
-
Replacing the Vehicles
When disposing of company-owned vehicles, you must be ready to replace them. Replacing the vehicles might initially seem to be an easy task. However, it comes with its fair share of challenges. Remember, the business still needs vehicles to run and meet its daily needs, like e-commerce delivery, so urgent replacement might be necessary.
The replacement decision will depend on the type of vehicle you'd like to buy or trade in for the older one. You must also assess the condition of the replacer vehicles and negotiate prices with the dealers. Before replacing the vehicles, you must also weigh the financing options and decide whether to pay in cash or for a loan.
Another challenge when replacing the company-owned vehicles you'll face is insuring and registering all of them. Proper vehicle registration and insurance are necessary to reduce potential future risks, but it comes at a cost that can drain the business financially. Despite that, the replacement process is time-consuming and can be longer if the decision-making involves more than one party.
-
Settling For the Disposal Method
Another company-owned disposition challenge you will likely face is settling for the right disposal method. The company can sell, trade-in, or scrap the vehicles. Each option attracts some given logistics, which you must abide by. For example, if the company decides to sell the vehicles, be ready to advertise, set the asking and final selling price, and schedule test drives.
The company must also transfer the vehicle registration to the new owners and change the insurance policies. Furthermore, some states require companies selling their vehicles to have a dealer license. Doing all these can be a nightmare for the company.
Partner with Wilmar, an Independent Fleet Leasing and Management Company
Consider working with an independent fleet leasing and management company to avoid all the above disposition challenges. Fleet leasing and management companies such as Wilmar can help you dispose of company-owned vehicles.
The company can maintain, repair, negotiate, and lease the vehicles on your behalf, reducing your problems. Contact us and have an easy time disposing of the company-owned vehicles and running the business with less challenges.
