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

An operating lease transfers use of the vehicle to the fleet without requiring full purchase price payment, preserving capital.

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

In a closed-end lease, the lessor sets and assumes the residual value risk, protecting the fleet from depreciation surprises.

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

A needs analysis evaluates operational requirements, ensuring vehicle specs align with actual usage before procurement.

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

In an open-end lease, the lessee is responsible for any shortfall between the actual sale price and the projected residual value.

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

Retail sales to employees or the public typically achieve higher prices than wholesale because the buyer pays closer to market value.

CAFM - Certified Automotive Fleet Manager Practice Test