CAFM Vehicle Acquisition & Disposal 4 — Questions and Answers
Question 1: Which government program allows eligible public fleet agencies to purchase vehicles at pre-negotiated contract prices without a separate bidding process?
- GSA Fleet cooperative purchasing (Correct answer)
- IRS fleet tax exemption program
- FHWA vehicle grant program
- EPA Green Fleet certification
Correct answer: GSA Fleet cooperative purchasing
GSA schedules and cooperative purchasing contracts allow eligible agencies to procure vehicles at pre-negotiated rates, bypassing individual RFP processes.
Question 2: A fleet manager is evaluating alternative fuel vehicles (AFVs) for acquisition. Which factor most directly impacts total cost of ownership for AFVs compared to conventional vehicles?
- Vehicle color
- Fuel cost differential and available fueling infrastructure (Correct answer)
- Driver uniform policy
- License plate renewal fees
Correct answer: Fuel cost differential and available fueling infrastructure
The economic viability of AFVs depends heavily on fuel cost savings and whether adequate fueling or charging infrastructure exists near operation areas.
Question 3: What is 'fleet right-sizing'?
- Ensuring all vehicles are the same make and model
- Aligning fleet size and vehicle types precisely to operational demand (Correct answer)
- Purchasing the largest vehicles available
- Reducing fleet headcount by 50%
Correct answer: Aligning fleet size and vehicle types precisely to operational demand
Right-sizing matches the number and type of vehicles in a fleet to actual operational need, eliminating underutilized assets.
Question 4: Which disposal channel is most appropriate for high-mileage vehicles with significant mechanical issues?
- Executive sale to senior management
- Employee purchase program
- Wholesale salvage or scrap auction (Correct answer)
- Retail listing at full market value
Correct answer: Wholesale salvage or scrap auction
High-mileage vehicles with significant issues are best disposed of through salvage or scrap channels where buyers price them for parts or metal value.
Question 5: A fleet manager must document vehicle disposal proceeds for accounting purposes. Which document typically serves as proof of sale for a disposed fleet vehicle?
- Vehicle maintenance log
- Driver assignment record
- Bill of sale or auction receipt (Correct answer)
- Fuel card statement
Correct answer: Bill of sale or auction receipt
A bill of sale or auction receipt provides the official record of the transaction price and buyer, supporting proper accounting and title transfer.
Question 6: What is the purpose of a 'vehicle selector' or 'selector list' in fleet acquisition?
- A tool for drivers to customize paint colors
- A pre-approved list of vehicles employees may choose from (Correct answer)
- A software tool for tracking fuel consumption
- A checklist for roadside inspections
Correct answer: A pre-approved list of vehicles employees may choose from
A selector list limits employee vehicle choices to pre-approved makes and models that meet fleet policy and cost requirements.
Question 7: Which depreciation method spreads a vehicle's cost evenly across its useful life, producing equal expense amounts each year?
- Double declining balance
- Sum-of-years-digits
- Straight-line depreciation (Correct answer)
- Units of production
Correct answer: Straight-line depreciation
Straight-line depreciation allocates an equal portion of the vehicle's depreciable cost to each year of its useful life.
CAFM Vehicle Acquisition & Disposal 4
Which government program allows eligible public fleet agencies to purchase vehicles at pre-negotiated contract prices without a separate bidding process?