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 wants to reduce acquisition cycle time. Which strategy is most effective?
Answer: Establishing annual blanket purchase orders with approved vendors
Blanket purchase orders with pre-approved vendors eliminate repetitive bidding, significantly shortening the time from need identification to vehicle delivery.
What does 'upfitting' refer to in fleet vehicle acquisition?
Answer: Adding specialized equipment or modifications to a vehicle after factory production
Upfitting involves adding work-specific equipment such as shelving, lighting bars, or utility bodies after the base vehicle is manufactured.
Which financial ratio best measures how efficiently fleet assets (vehicles) are being utilized?
Answer: Vehicle utilization rate (miles driven vs. available capacity)
Vehicle utilization rate measures how much of a vehicle's capacity is actually used, helping identify underutilized assets that should be disposed of.
When a fleet vehicle is sold to an employee, what is the main legal requirement the fleet manager must fulfill?
Answer: Properly transferring the title to the employee
Title transfer is a legal requirement for any vehicle sale, including employee sales, to officially record the change of ownership.
A fleet manager is concerned about vehicle delivery delays. Which acquisition approach provides the most flexibility in delivery timing?
Answer: Stock order from dealer inventory
Ordering from existing dealer stock eliminates the factory build queue, typically resulting in much faster delivery than factory orders.
What is the role of a fleet management company (FMC) in the acquisition and disposal process?
Answer: Providing outsourced procurement, titling, registration, and remarketing services
FMCs act as third-party administrators that handle procurement, financing, titling, and disposal on behalf of the fleet client.
Which factor most significantly affects a used fleet vehicle's auction resale value?
Answer: Mileage and vehicle condition at time of sale
Mileage and physical/mechanical condition are the primary drivers of auction value, as buyers price risk based on how much useful life remains.