When analyzing the cost of your fleet, traditional models are
often wrong and should be thrown out the window. The common thought,
certainly the one I encounter the most during the course of my business
day, is that the best way to operate a fleet is to pay cash or traditionally finance new autos,
pay it off over time and eventually “after the wheels fall off” retire
it from your fleet, recouping at most the scrap metal value of the car
or truck. That model is inherently flawed, and the reason is that the
model doesn’t differentiate between the words cost and price, and it completely ignores the word value.
Many consider the negotiated upfront price of the auto to be
the cost of the vehicle, but the fact is the cost is compromised of a
few more components. Of those, three components figure the most
prominently in analyzing true cost. First, is the depreciation. Autos,
at any point in their lifespan, have a value that they are worth. After
the wheels fall off, they are worth the market price of scrap metal, but
prior to that, they have a real value in the very active used car
market. Every year a vehicle is on the road, it is worth less money than
the year before. It is absolutely necessary to figure in the lost sell
value of a vehicle when analyzing true cost year over year.
The second prominent cost component is maintenance. Keeping an
auto together long enough to let the wheels fall off is prohibitively
expensive. Even after the last loan payment has been made, the
maintenance prices continue to add up. And after a certain point in
every vehicle’s life, the cost of maintenance skyrockets as older
vehicles tend to breakdown more often, with pricier repairs and worst of
all, more unexpectedly. And we all know what these unexpected
breakdowns can do; making us scramble to put out the fire and to
maintain the company’s reputation to clients.
The third prominent cost component is fuel, and no matter how
you look at it, older vehicles are less fuel efficient that newer cars.
There are two reasons for this: 1) vehicles lose one or two miles per
gallon per year in fuel economy and 2) new autos are federally mandated
to have better gas mileage year over year. For example, according to the
a V6 F150 from 2007 had a combined fuel economy rated at 16 mpg,
whereas a 2013 model is rated at 18 mpg. And these numbers are if the
vehicle was brand new and doesn’t account for the loss in economy based
on the age and wear of the trucks. At 25,000 miles per year, and at
today’s price of gas, a loss of a mile per gallon in fuel economy for
that truck will increase your total cost for that year by $500-$750.
While that might not seem like much at first glance, multiply that by
the size of your entire fleet, and that’s the amount of net profit
that’s been lost to an unnecessary expense.
While this may appear to be all doom and gloom, which may be
appropriate considering Halloween is approaching, it really isn’t.
Vehicles have an ideal cycling point, which is the sweet spot, that
balances out all the true costs to get you to the point of lowest cost
of operating. The best news is that you have well trained professionals
at your fingertips at Mobilease. If you’re at all interested in lowering
and controlling your fleet costs, please call us. We’d be happy to run a
cost analysis for you and help you realize greater net profits today.
Article by: Wesley Burnham
HCMS Fall Expo 2013
Mobilease was thrilled to participate in the Harris County Medical Society
(HCMS) Fall Expo at Reliant Center this past Saturday, October 12,
2013. This event was particularly important this year with the
Affordable Care Act (ACA) now in effect. The HCMS is the largest county
medical society in the United States, with a membership of more than
10,000 physicians and medical students. The Expo offers Continuing
Medical Education seminars (CME’s), as well as numerous opportunities
for physicians and medical staff to increase the efficiencies of their
practices or businesses.Our presence at the Expo allows us to offer a multitude of
equipment financing options, as well as our vehicle leasing programs to
the attendees. We were excited to catch up with some past attendees,
meet several new people, and gain a wealth of knowledge about the
medical industry. Partnering with the HCMS continues to be a privilege
and we are very much looking forward to the next HCMS Expo in the Spring
If you are a physician, or office staff member that needs the
continuing medical education courses that the HCMS offers please feel
free to contact Holly Smith at 713-526-7378, ext. 274 or click on the
Business Expo logo below.
(Pictured above: left Wesley Burnham & Shane Jarka, right George Lazaneo “Texan Elvis” & HCMS Guests)
Article By: Christa Trostle
2013 MobileasePumpkin Patch
On Saturday, October 19, 2013, Mobilease will host its “favorite event”…the Mobilease Pumpkin Patch.
As everyone knows, this event is our way of giving back to the
Houston community while celebrating the Fall season. Entrance to this
event is simple; we ask families that are attending our event to bring
new or gently used children’s books in exchange for a pumpkin. The books
that we receive, in turn will be distributed by Texas Children’s
Hospital to various children’s clinics throughout Houston, as well as
the Pi Beta Phi Book Nooks in the waiting rooms at various locations.
office and the adjoining property will be transformed into a large
family playground. This year’s event will include over-sized yard games
that will entertain all ages.To ensure that we have enough fun for everyone, please remember to RSVP if you haven’t done so already to firstname.lastname@example.org as soon as possible. This will help ensure that this year’s event will be enjoyable for all that attend.
We look forward to seeing you at the next event.
Article by: Jay Hooper
GM Unveils the New Tahoe, Suburban and Yukon SUVs
General Motors is finally showing off the redesigned Chevrolet Tahoe, Suburban and GMC Yukon.
The 2015 model-year SUVs, which will hit showrooms between January and
April 2014, share the same vehicle architecture with GM’s recently
redesigned full-size pickup trucks. A 5.3-liter V-8 is standard in all
but the Yukon Denali models, which get a 6.2-liter V-8 rated 420
horsepower and 460 pounds-feet of torque. The 5.3 is rated 355 hp and
(Pictured above: left 2015 Chevrolet Tahoe, right 2015 GMC Yukon, below 2015 Chevrolet Suburban)
The new 2015 SUVs feature a number of improvements including
more rear seat legroom and the third row seats actually fold down flat,
as they do in other SUVs. The 2015 models bring new equipment that
includes a standard center airbag installed in the inboard side of the
driver seat, a suite of active safety systems such as blind-spot
warning, forward collision alert, lane-departure warning and active
cruise control. A 5-inch touchscreen in the center stack is standard,
while upgraded infotainment systems bring an 8-inch screen that borrows
from other GM models by opening to reveal a hidden storage compartment.
On the outside, the SUVs didn’t change dramatically. They boast new
hoods, grilles and fascias. The Tahoe and Yukon will come in extra-large
variants for those who really need a lot of space.
A larger percentage of Tahoe and Yukon buyers are corporate fleets.
So far this year, about half of Tahoes sold were purchased for fleets,
according to KBB.com. Production of final test vehicles began on
September 16th at Arlington with over a million miles of driving
scheduled over the next several months to make sure these all new 2015
SUV vehicles for Chevrolet and GMC are as close to perfect as possible
when they go into final production for the market.
For now, these new GM large and full-size SUVs all look like
winners and you can see for yourself if you attend the Texas State Fair
in Dallas this year, as GM says they will be on display at the Texas
State Fair Auto Show. Mobilease will keep you up to date as production
starts so you can order your new 2015 model.
Article by: Aisha Cox
Avoiding Collisions & Driver Safety
During the months of October through December animal related
collisions spike. This is due to the deer mating season and the increase
of movement by these animals. The average cost to repair animal
collision damage is around $2,800. If you are driving through deer
populated areas, here are a few tips to help you avoid animal
Be especially attentive from sunset to midnight and during
the hours shortly before and after sunrise. These are the highest risk
times for deer-vehicle collisions.
If you see one deer cross, slow down and watch for others to follow.
Look for movement where roads are bordered by fields or natural habitat.
Heed deer crossing signs and reduce speed in deer “hot spots.”
When driving at night, use high beam headlights when there
is no oncoming traffic. The high beams will better illuminate the eyes
of deer on or near the roadway.
Brake firmly when you notice a deer in or near your path,
but stay in your lane. Many serious crashes occur when drivers swerve to
avoid deer and hit another vehicle or lose control of their vehicle.
Always wear your seat belt. Deer-vehicle collisions can result in serious injuries, and even death.
Ensure that your breaks and tires are in good working order.
A properly functioning vehicle can help if you need to react quickly.
Here are additional tips for drivers that do get into an accident with an animal:
Do not attempt to touch an injured animal that’s in or near
the road. When the police arrive, they will be able to call the proper
authorities to care for the animal.
Always follow your company’s fleet procedures for reporting collisions.
Article by: Shane Jarka
The Buzz Around Mobilease
Giving Back to the Community
In giving back to the community, our very
own Christa Trostle, along with a couple of clients and friends
participated in the Gritty Goddess 5K mud run at the end of September.
The run benefits The Rainbow Connection, the Breast Cancer Fund, and
Girls on the Run of Houston & Galveston.
(Pictured above: Christa Troste, Dawn Curtis, Angela Olalde, Nina Cox & Siera Shoemaker before the run)