ALL OF RM and AQU

Question 1

What is re- Marketing?

Answer 1

Selling vehicles at the optimum time to achieve the highest value price

Question 2

What is Holding cost?

Answer 2

The true cost of running a vehicle on our fleet

Question 3

What is a washout?

Answer 3

Same as holding cost but as a %

Question 4

What factors influence holding cost/ washout?

Answer 4

Purchase price
Sales price
Months in service

Question 5

what is holding cost equation?

Answer 5

Holding cost= purchase price- sales price/ months in service

Question 6

washout equation?

Answer 6

Washout % = holding cost / purchase price x 100

Question 7

What does enterprise try to do for holdout costs?

Answer 7

Keep them as low as possible without sacrificing customer needs

Question 8

How can rental contribute to sales price?

Answer 8

Delete speed- 5 days max
Condition- clean and ready
Maintenance- all services done, all damage bigger than E-tool repaired
Milage- correct milage inputted

Question 9

Delete procedure?

Answer 9

Ground unit
Check for damage and go over VSA
Check LDR for claims
Document milage
No holds
Delete within 5 days to get optimum price
Do not move vehicle to prevent ABORT

Question 10

What 4 parts of PUA are effected by V.A and remarket? And why for each?

Answer 10

1)Days earned (UTE)- right amount of vehicles in group for the current demand so sat tight.

2) Depreciation- RCRD, right fleet mix

3) Vehicle adjustment - well managed delete times improve sale price

4) IPC (C+I revenue)- RCRD, can bill the correct rate, no downgrades, higher UTE

Question 11

What is vehicle adjustments?

Answer 11

Difference between sale price and depreciation value

Question 12

Net profit equation?

Answer 12

Operating profit + vehicle adjustment

Question 13

Reduced book value meaning and equation?

Answer 13

Enterprises estimated depreciation amount
Purchase price - Deprectation (1.7%) = RBV

E.g car for £10,000 helf for 10 months =
£10,000 - (£170 x 10) = £8300

Question 14

Vehicle adjustment equation?

Answer 14

Sales price - Reduced book value = vehicle adjustment

Question 15

Inventory adjustment equation ( per car amount)

Answer 15

= VEHICLE ADJUSTMENT / FLEET SIZE

Question 16

Depreciation amount per month?

Answer 16

1.7% per unit per month

Question 17

Is depreciation based off of car class or car make/model?

Answer 17

Car class, all A groups estimated to depreciate the same. So we use average cost of all A groups to work our value.

Question 18

What is margin made? And how do we calculate

Answer 18

Depreciation cost per day.
Average unit cost x 0.017 / days in month to workout cost per day for the car.

Question 19

What type of cost is depreciation?

Answer 19

Direct/ gross cost

Question 20

What do free upgrades do?

Answer 20

Lead to smaller profit margin as depreciation is higher for higher car classes but we can’t bill more to make up fr it.

Question 21

How to manage depreciation?

Answer 21

RCRD
Have a good fleet mix
Give up unused cars, make them pay the depreciation.

Question 22

3 ways Enterprise have vehicles?

Answer 22

Buy- 95%
Buy back- dealership buy back at arranged price
Rent - mercedes

Question 23

New car stock process?

Answer 23

Get list of cars coming
Check all match list, make sure VIN matches as well as colour transmission etc
Accept anything within E-tool but needs a signature from transport employee to bill the manufacturer, need to also tell Paul Nelson and fleet strategy.
Infleet ASAP to use cars and make payment go through, builds better relationship.

Question 24

What to do with damaged new stock?

Answer 24

Contact Paul nelson I think and fleet strategy. Reject anything exceeding E-TOOL.
Mercedes new stock reject if any damage of any size

Question 25

Do we pay depreciation on Mercedes?

Answer 25

No

Question 26

Is depreciation figure same for each branch?

Answer 26

No as it would be unfair to branches that mainly have A- groups as their depreciation will be lower.