Warranty Coverage for Fleet Vehicles
Companies that manage fleet vehicles invest in a warranty coverage to ensure their investments are protected, and they have a hedge against a major financial loss. Given the important role of fleets to companies, it is crucial to invest in fleet management and choosing the right coverage for the highest protection. This guide explores the warranty coverage for fleet vehicles to help you pick the right plan that aligns with your unique business needs.
Key Takeaways
• Fleet vehicles are a group of vehicles that companies use to transport people or goods to facilitate their business activities.
• Consider your budget and business needs before deciding to buy a fleet vehicle, or consider if leasing would be more practical.
• A fleet consists of different types of vehicles based on the industry or intended purpose for the fleet.
• Investing in a warranty coverage for fleet vehicles ensure you can protect your business asset and prevents major financial loss due to repairs and replacement of parts.
• Follow the best maintenance practices for your fleet of vehicles so you won’t void your warranty and eliminate the hassle of vehicle breakdowns.
What Are Fleet Vehicles?
A fleet vehicle is any vehicle that a company uses to transport people or goods. The transporting of goods and people are part of the business operations, or they facilitate in the day-to-day business activities.
There are various types of vehicles used in a fleet, such as service vans, pickup trucks, cars, and specialized heavy-duty trucks. It varies according to the nature of the business and its activities.
Essentially, a fleet vehicle is any motorized vehicle that uses gas, diesel, or fuel to operate. The fleet size varies from one company to another, which could be five or up to 50 vehicles. Given the important role that fleet vehicles play in the business operations, proper fleet management and choosing the right warranty coverage is crucial to protect this business asset.
Which Industries Use Fleet?
Various types of industries and businesses require a fleet of vehicles.
The most common example is a car rental service or company. They have several vehicles in their fleet to ensure that they have vehicles available for the customer’s needs and preferences, whether they need a vehicle for a small or large group.
Companies within the agricultural industry are another example of those that utilize fleet vehicles. They use various vehicles for different purposes, such as tractors, pick-up trucks, and heavy-duty trucks.
Add to the list of the common industries that rely on fleet management are those in the long-distance trucking service. These companies use long-distance cargo trucks to move different goods, traveling several miles and in varying conditions. Preventive maintenance and the right warranty coverage ensure these vehicles are in the best condition to handle demanding jobs.
Warranty Coverage for Fleet Vehicles
A fleet warranty is an assurance from the vehicle manufacturer that they will cover the cost of necessary repairs or parts replacement on your vehicles within a predetermined time period or mileage. However, terms and conditions apply to these warranty plans that you must be aware of when making warranty claims.
Understanding the terms of your warranty is crucial so you can enforce them properly when making a claim, and to avoid wasting money when your warranty is void and you need repairs done on your fleet vehicles.
A typical fleet warranty offers coverage for up to three years or equivalent to 36,000 miles on a comprehensive bumper-to-bumper warranty. Some warranties could be up to eight years or 100,000 miles for specific parts, such as the battery pack or the drivetrain.
You can also consider getting an extended warranty, if you want to mitigate the long-term costs of fleet vehicle maintenance and repairs. Consider an extended warranty only if your standard warranty does not provide adequate coverage according to your needs, or foreseen needs based on your business activities or the possibility of repairs due to the road and driving conditions for your fleet vehicles.
However, there are a few conditions that may make you think twice before buying an extended warranty for your fleet:
• Smaller fleet size
• New vehicle technologies with unpredictable repair costs
Whether you buy a standard or extended warranty, it is non-negotiable if you own a fleet. It is a vital cost-saving measure for businesses and fleet managers, which reduces the business costs on repairs and downtime. It can also extend the life cycle of your business asset.
How to Buy Your Fleet
Are you in the process of buying a fleet vehicle? Take note of these tips when buying your fleet for the best investment.
• Evaluate your business needs and determine a budget for your fleet.
• Pick the specific vehicles you need for the fleet. Determine if you need additional upfitting for the vehicles based on your intended purpose.
• Decide if it is better to buy your fleet or consider leasing them.
• Hire or designate a fleet sales manager that will facilitate the fleet buying process.
Maintenance Tips for Fleet Vehicles
Properly maintaining your fleet vehicles is a crucial step in preserving your extended warranty. Aside from preserving your warranty, it is crucial to maintain your fleet vehicles in good working condition. It helps avoid the hassle of having major breakdowns on your vehicle while engaged in various business activities. At the same time, it keeps your employers and customers safe.
Follow these maintenance tips for your fleet vehicles to run smoothly:
• Follow a regular inspection schedule for your fleet. Preventive maintenance is crucial to maintaining a healthy fleet, such as oil changes, engine cleaning, and tire changes. Set a specific schedule for these activities and don’t wait until you see signs of problems before you take them to an experienced vehicle maintenance provider or technician.
• Obtain regular driver reports about the fleet status. Your drivers are pivotal in maintaining your fleet since they are the ones behind the wheel. Get real-time reporting from your drivers about the condition of the vehicle, and make sure they are knowledgeable about checking the tire pressure and oil, to ensure everything is in good working condition.
• Choose your vehicles properly and ensure they are fit for the purpose. Putting a vehicle with less capabilities for heavy-duty work will wear on that vehicle and its components over time, resulting to premature damage. It could also possibly void your warranty. Therefore, choose a task that is fit within a vehicle’s capabilities and consider upgrading to a larger vehicle if you require more challenging cargo or long-distance travel.
• Manage your tires. Taking good care of the tires are important since it is the only part of the vehicle that comes into contact with the ground. Various factors, such as the road surface conditions, terrains, and driving habits can significantly impact the tire degradation. Always conduct tire pressure checks before and after a trip to ensure the tires are fit for the road.
• Train drivers on the best driving habits. As mentioned, driving habits can impact the tire degradation and overall fleet vehicle health. Train drivers to drive efficiently because it is beneficial in maintaining the car in good condition, as well as preventing road accidents.
The Bottom Line
A good rule of thumb to replace or repair your fleet vehicles would be every after four years or when they reach 100,000 miles. You can extend their lifespan with proper fleet maintenance. It will be more cost-efficient to maintain than it is to replace your fleet vehicles, especially if you have an extended warranty.
Proper fleet vehicle maintenance is also a wise investment for businesses. Damage to the fleet could result in a loss of revenue, especially if your fleet is directly involved with your business operations and activities.
