Automotive fleets are groups of vehicles owned and operated by public or private entities, including governments, businesses, and delivery companies. Fleet leasing is a cost-effective option, and fleet maintenance can provide income for third-party mechanics. Large fleets may also have the option to self-insure.
An automotive fleet is a group of vehicles that is owned and operated by a public or private entity. These fleets can consist of cars, trucks, and heavy vehicles. Governments will often have vehicles in their fleets for employees to drive and perform various government tasks. A company-operated fleet of cars will generally reflect the industry in which the company is engaged. Delivery companies, for example, will tend to have a large number of vans and trucks in their fleets, while other companies may have a variety of cars, trucks, and other specialty vehicles.
Many government organizations and municipalities operate car fleets. In the United States, vehicles owned by the federal government are often referred to as the federal fleet. At the local level, police departments, public services and other public entities will often operate their own fleets.
Private companies can also own large fleets. Delivery companies, car rental agencies, and taxi companies are some examples of businesses that may maintain fleets of cars. Businesses that employ third-party salespeople often also operate fleets, providing vehicles for their salespeople to call customers.
Rather than purchase vehicles for their fleets, many government agencies and businesses choose fleet leasing. Many fleet vehicles are widely used and accumulate mileage at a faster rate than private vehicles, so a car fleet lease can provide a cost-effective way for an organization to keep its vehicles cool. If the vehicles are purchased outright, it is common for fleet vehicles to be auctioned off in large lots once the organization determines they are too old or have too many miles.
Some organizations with large car fleets may retain their own service personnel. In other cases, car fleet maintenance can provide a lucrative source of income for third-party mechanics, as large fleets may require regular maintenance and repair operations. Some organizations that have mechanics on staff may consider having certain fleet maintenance operations performed by a third party if a repair is particularly complex or if their repair staff is at capacity.
Large car fleets sometimes also have the option to self-insure, rather than using a third-party auto insurance company. The laws governing this practice vary by jurisdiction, but often depend on how many vehicles are in the fleet. If an organization chooses not to self-insure or is not allowed to, the large number of vehicles in its car fleet can make the organization an attractive client for insurance agents.
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