Vehicle Acquisition & Disposal Flashcards
7 cards from real CAFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Vehicle Acquisition & Disposal flashcards as text
A fleet manager is comparing total cost of ownership (TCO) for two vehicles. Which cost is most commonly EXCLUDED from a simple purchase price comparison but included in TCO?
Answer: Fuel and maintenance costs over the life cycle
TCO incorporates all lifetime costs including fuel, maintenance, insurance, and depreciation, not just the initial purchase price.
Which type of auction gives fleet managers access to the largest volume of wholesale buyers and fastest vehicle liquidation?
Answer: Online fleet/lease auction
Online fleet/lease auctions attract large numbers of wholesale buyers nationwide, enabling faster and broader liquidation.
What is 'remarketing' in the context of fleet vehicle disposal?
Answer: The process of selling used fleet vehicles to maximize return
Remarketing refers to the strategic process of preparing and selling used fleet vehicles through optimal channels to maximize residual value.
A fleet manager notices vehicles are being kept beyond their optimal replacement cycle. What is the primary financial risk?
Answer: Escalating maintenance costs exceeding replacement savings
Keeping vehicles past their optimal replacement point typically leads to sharply rising maintenance costs that outweigh any savings from deferring acquisition.
Which metric is most useful for determining the optimal vehicle replacement point from a cost perspective?
Answer: Lowest point on the total cost per mile curve
The optimal replacement point is typically where the total cost per mile (depreciation + operating costs) reaches its lowest value.
What is a 'fleet pool vehicle' in the context of acquisition planning?
Answer: A shared vehicle available to multiple employees as needed
Fleet pool vehicles are shared assets not assigned to one individual, maximizing utilization across multiple users or departments.
When issuing a Request for Proposal (RFP) for vehicle acquisition, which element is critical to include to ensure comparable bids?
Answer: Detailed vehicle specifications and evaluation criteria
Clear specifications and evaluation criteria ensure all vendors bid on identical requirements, enabling an apples-to-apples comparison.