CAFM Vehicle Acquisition & Disposal 2

Question 1

Which acquisition method allows a fleet to add vehicles without a large upfront capital expenditure?

Accepted Answer

Operating lease

Answer

Outright purchase with cash

Answer

Spot market purchase

Answer

Trade-in allowance

Question 2

What is the primary financial advantage of a closed-end lease for a fleet manager?

Accepted Answer

Lessor assumes residual value risk at lease end

Answer

Fleet manager bears residual value risk

Answer

Fleet owns the vehicle at termination

Answer

Monthly payments are higher than open-end leases

Question 3

A fleet manager wants to ensure vehicle specifications meet operational needs before ordering. Which process best accomplishes this?

Accepted Answer

Conducting a needs analysis prior to ordering

Answer

Retroactive spec review after delivery

Answer

Matching competitor fleet specs directly

Answer

Using the prior year's spec sheet without revision

Question 4

Under an open-end lease, who is responsible if the vehicle's realized auction value is less than the projected residual?

Accepted Answer

The lessee (fleet)

Answer

The vehicle manufacturer

Answer

The auction house

Answer

The insurance carrier

Question 5

Which disposal method typically yields the highest return for well-maintained, low-mileage fleet vehicles?

Accepted Answer

Retail sale to employees or public

Answer

Wholesale auction

Answer

Scrap/salvage yard

Answer

Trade-in to dealer

Question 6

What document formally authorizes a vendor to supply vehicles and establishes pricing and terms for a fleet?

Accepted Answer

Master purchase agreement

Answer

Bill of lading

Answer

Vehicle registration

Answer

Title certificate

Question 7

When disposing of fleet vehicles, which environmental regulation requires fleet managers to ensure proper handling of hazardous fluids?

Accepted Answer

EPA Resource Conservation and Recovery Act (RCRA)

Answer

FMCSA Hours of Service

Answer

DOT Part 382

Answer

OSHA 1910.178