- Vehicles are changing. All the major car manufacturers are getting deeper into electric and hybrid vehicles, betting their companies’ future in some shape or form of new energy power source and new business models.
- Small fleet owners or professionals with a single vehicle used both for business and personal use, who are in the market for a new vehicle, are faced with tough decisions. What technology do I bet on, what cost structure and which brand will survive the transition and stay in the lead.
- These decisions, may have significant impact on your business. They can set you apart from the competition and provide you an edge or be the item that keeps your costs high and low return on your investment.
If you are a business professional, small or medium business owner, good chances are that sometime in the next two years, you will want to replace your vehicle or vehicles. The decision this time around however, is harder than it has been in past years. Here are some things to consider:
- Technology – In the past five to ten years, getting a new vehicle meant you had built in GPS and ability to connect your mobile phone to your vehicle. This time around, technology will play a much bigger role in your decision. Commercial vehicles will turn electric by the time your next vehicle will retire. Vehicle telematics, the data your vehicle produces can be used to help you optimize your business. Will your vehicle be equipped with the right technology? What other technology tools are available and how do they play into your decision process? Is phone connectivity and GPS all you need or are you leaving options behind?
- Vehicle ownership – Buying outright, Lease or financing all depend on current and residual value of your vehicles. The available cash you need for your down payment is obviously a factor as well. In an automotive world that is rapidly moving to electric or other energy solutions, todays vehicles are expected to plummet in value. in just a few years, your gasoline truck may be worth a fraction of it’s current value as the transition to electric trucks will hit a tipping point. We can debate how long will it take to happen, but most everyone agrees that its coming, and maybe faster than expected. This transition will have significant impact on your business and today’s financial options and the advise you may get at the dealership, are all stacked against your business interest.
- Ongoing service and support – Time is money. Your time spent running your business is precious and unless you are in the transportation business, you vehicles are means to an end. A way to get to and from work, get your merchandise or service to your customers, or stocking your store. You may be a Dry cleaner, Florist, Painter, Plumber or Cupcakes baker, your vehicles serve the purpose of keeping your business going. So what happens when one of your vehicles is down? What do you do when you find out that an engine fault light has been on for weeks and you didn’t even know since your vehicle driver didn’t think it was important? How do you pass the time at the tire shop on Sunday, when tires and brakes need to be replaced and you can’t afford missing the vehicle during the work week. The level of support you get for your business fleet, be it one vehicle, five or ten, is defining your business. Your personal time, your attention and your customers’ view of your business. Current car manufacturers and dealers, still live in the past, where you have to schedule an appointment, spend time at the dealership or repair shop, and spend precious time dealing with transportation issues that not core to your business. On top of it, your vehicles mostly get tended to when something goes wrong. At which point, it is probably too late.
“So what” you ask. “It’s not as bad”, “I haven’t had an issue for months…”
When you put these three trends together, you may paint a picture of the difference between a business that is anticipating needs and manages with a year to three year horizon, and establishes focus on it’s core competencies, vs. a business that is slipping behind on Technical, Financial and Customer Service capabilities.
And, as a business owner, taking these trends into consideration, may provide you the time and stability you need to run your business smoothly. If nothing else, it will give you time and money back to spend on improving your business or just take a much needed break.
Think these trends impact your business, let us know how and what would be important for you to keep your business going?
About moshn mobility:
moshn mobility is a small-fleet vehicle service and fleet management software with a low upfront cost and service that is tailored to keeping small businesses running.
We are building solutions that are 100% small business minded and developing our vehicle offerings, services and software to the needs of local business owners and their community. Check out our blog and on facebook, instagram and other social media platforms. Contact us at firstname.lastname@example.org