Remarketing: How do Company and Driver-paid Options Impact Resale
August 16, 2012
By William Cieslak, Vice President, North America Remarketing, PHH Arval
Power windows and CD players may be options that drivers can’t live without when purchasing their personal vehicles, but where do these extras fit in when it comes to company provided fleet vehicles?
Companies have a responsibility to provide safe vehicles to their drivers. Vehicle options should meet all established safety standards and selections should be based on functionality, pricing and availability. However, for remarketing purposes, you may want to consider:
- Cruise control,
- Remote keyless entry,
- Airbags exceeding National Highway Traffic Safety Administration requirements,
- Power windows and door locks,
- Automatic transmission, and
- CD or MP3 players.
In addition to the equipment the company is willing to provide in the vehicle, fleet managers can offer drivers the option to add company approved extras at their own expense.
In a 2011 PHH Arval survey of fleet managers, we found that 50% of the respondents do not allow any driver-paid options on their fleet vehicles. Another 25% of respondents said driver-paid options are allowed but are restricted to a company approved list. For the remainder of the respondents that allow driver-paid options, choices are most often determined by a dollar limit based on a percent of the vehicle cost, or the driver’s title or position.
If options are allowed, fleet managers must ensure the extras do not negatively impact the vehicle’s resale value. Additionally, fleet managers should prohibit drivers from removing any factory-installed equipment or safety features.