ALL OF RM and AQU Flashcards
What is re- Marketing?
Selling vehicles at the optimum time to achieve the highest value price
What is Holding cost?
The true cost of running a vehicle on our fleet
What is a washout?
Same as holding cost but as a %
What factors influence holding cost/ washout?
Purchase price
Sales price
Months in service
what is holding cost equation?
Holding cost= purchase price- sales price/ months in service
washout equation?
Washout % = holding cost / purchase price x 100
What does enterprise try to do for holdout costs?
Keep them as low as possible without sacrificing customer needs
How can rental contribute to sales price?
Delete speed- 5 days max
Condition- clean and ready
Maintenance- all services done, all damage bigger than E-tool repaired
Milage- correct milage inputted
Delete procedure?
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
What 4 parts of PUA are effected by V.A and remarket? And why for each?
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
What is vehicle adjustments?
Difference between sale price and depreciation value
Net profit equation?
Operating profit + vehicle adjustment
Reduced book value meaning and equation?
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
Vehicle adjustment equation?
Sales price - Reduced book value = vehicle adjustment
Inventory adjustment equation ( per car amount)
= VEHICLE ADJUSTMENT / FLEET SIZE
Depreciation amount per month?
1.7% per unit per month
Is depreciation based off of car class or car make/model?
Car class, all A groups estimated to depreciate the same. So we use average cost of all A groups to work our value.
What is margin made? And how do we calculate
Depreciation cost per day.
Average unit cost x 0.017 / days in month to workout cost per day for the car.
What type of cost is depreciation?
Direct/ gross cost
What do free upgrades do?
Lead to smaller profit margin as depreciation is higher for higher car classes but we can’t bill more to make up fr it.
How to manage depreciation?
RCRD
Have a good fleet mix
Give up unused cars, make them pay the depreciation.
3 ways Enterprise have vehicles?
Buy- 95%
Buy back- dealership buy back at arranged price
Rent - mercedes
New car stock process?
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.
What to do with damaged new stock?
Contact Paul nelson I think and fleet strategy. Reject anything exceeding E-TOOL.
Mercedes new stock reject if any damage of any size
Do we pay depreciation on Mercedes?
No
Is depreciation figure same for each branch?
No as it would be unfair to branches that mainly have A- groups as their depreciation will be lower.
