Category: Fleet Management

When purchasing assets, fleet managers tend to take a well-planned approach. And for good reason: The right mix of features, and the right buying or leasing strategy, can unlock significant value. That value extends well beyond the purchase or lease price alone; it also impacts the total cost of ownership (TCO) over the entire life of a vehicle. 

Not surprisingly, vehicle acquisition is typically viewed as a customized, strategic decision. But what about when it’s time to remarket an asset? Here’s where even the most savvy fleet managers tend to take the “one size fits all” approach. By doing so, fleets leave money on the table every time they sell an asset. We don’t have to tell you how that quickly adds up, even for small fleets. 

If your remarketing plan revolves solely around national auctions or dealer trade-ins, then it’s time to up your remarketing game. Keep reading to discover how the Onward way helps fleets increase their remarketing values by up to 25%. 

Remarketing the Easy Way

Sometimes, the simple, “one size fits all” solution is best. Unfortunately, that’s not the case with remarketing. Through our decades in fleet management, we’ve seen too many teams take the easy route and lose out on value as a result. Often, this is due to low internal bandwidth or a fleet partner that’s satisfied with doing the minimal amount required. As former in-house fleet managers, we’ve been in your shoes and can relate to these dynamics. But we also know you deserve more.

What is the “easy way?” It typically boils down to selling to the wrong buyer, at the wrong stage in the vehicle’s lifecycle, at the wrong price — and thinking that you have to settle for this reality. Here’s how this typically plays out for fleets: 

• Sell to the wrong buyer: Selling the vehicle to a friend or a national auction, or opting for a dealer trade-in when you’re ready to purchase a new asset.
• Sell at the wrong time: Determining the end of an asset’s life based on emotion, not data and market dynamics.
• Settle for the wrong price: Selling the vehicle for little-to-no value and being okay with that, regardless of what an asset is actually worth.
• Rise and repeat: Applying this same approach for every asset so that you lose out on value not just once, but every time you sell a vehicle. 

If this scenario sounds familiar, you’re in the same boat as many fleets. You know that sale prices matter, but you don’t have the bandwidth or support needed to tailor your remarketing approach to the market. Luckily, the right partner can help you customize your strategy so that you maximize your payout without adding more to your already-full plate.

Remarketing the Onward Way

At Onward, we take a clear stance on remarketing: Every asset has value, regardless of condition, and a data-driven strategy will help you maximize your sale price. Unlike fleet solution providers who take the “easy way,” we take the time needed to develop customized, value-driven remarketing plans.

Your asset’s value isn’t static; it’s a moving target that depends upon numerous factors, including but not limited to current values, manufacturer make and model, mileage and market conditions. Our experts leverage these data points and more to determine:

• Optimal asset lifecycle: We identify the right time for remarketing based on your operation’s objectives and robust, comprehensive data. 
• Optimal price: We use data to determine the true value of each asset and help our customers get the price they deserve. 
• Optimal buyer: We scour all available avenues for sales to determine which will deliver the best price. (Hint: it’s rarely a national auction.) 
• Optimal strategy: We optimize our strategy to ensure our customers continue maximizing remarketing values as the market and their operations evolve.

How does the Onward way translate to value for your fleet? On average, our customized strategies help our clients reap significantly higher remarketing values. This includes:

• 15% to 25% higher sale prices than dealership trade-ins.
• 8% to 20% higher sale prices than Carmax and Carvana trade-ins.

Along with that significant value, Onward customers also get a partner with their best interest at heart. We never take the “easy way;” we take the route that maximizes your value. That’s the Onward way.

Go Onward Today

When you’re busy managing a fleet, every minute is critical — especially in an era where you’re dealing with more data than ever before. It can be daunting to hear that you need to customize your remarketing strategy when it had previously been on autopilot. However, the right partner can ensure that your remarketing strategy delivers measurable value, not significant headaches. 

Are you ready to increase your sale prices by up to 25% over dealer trade-ins and 20% over Carmax? Let’s talk about your remarketing approach and how the Onward way can help you maximize every asset sale.  

As the automotive market slowly returns to normalcy, fleet managers are settling into the first days of 2024 with undeniable optimism. Vehicle supply is expected to hit pre-pandemic levels, helping to apply downward pressure on vehicle prices. And the seller’s market of the previous few years is predicted to end in 2024. But as a sense of balance is restored to the automotive industry, plenty of emerging dynamics will keep fleet managers on their toes. From EVs and AVs to the new skill sets that these technologies require, we’re entering a year when a forward-thinking approach is essential to success. 

With technology progressing at breakneck speed, it can be overwhelming to stay on top of every advancement. But by keeping key trends on your radar, you can position your fleet for success in 2024 — and be ready to adopt emerging technologies at the right time for your fleet. Here are the must-know technology trends that will shape fleet management in 2024, straight from our experts. 

Fleet Electrification and Sustainability 

In its New Year forecast, Cox Automotive calls 2024 “the Year of More” for electric vehicles (EVs). And for good reason: Numerous dynamics are converging to make electrification more attractive than ever, especially for commercial fleets. The price gap between EVs and gas vehicles is now under $3,000, and McKinsey describes fleet decarbonization as “demonstrably viable” — even for the transportation sector. Meanwhile, net zero targets and consumer pressures are pushing more businesses than ever to prioritize sustainability. Although commercial fleets have lagged behind consumers in EV adoption, industry experts believe that 2024 may be a tipping point. 

Switching to EVs is no small feat. It will require fleets to update their approach to maintenance, safety and even the total cost of ownership (TCO). But whether or not it’s the right time for your fleet to make the switch, the momentum behind electrification isn’t going anywhere — and understanding how it can impact your operations is critical. With a proven track record for helping fleets navigate alternative fuels, Onward is equipped to guide you every step of the way.

For many fleets, sustainability means electrification. But there’s also clear value in enhancing your operational efficiency, which can boost your sustainability while strengthening your bottom line. Let us help you optimize your operations to unlock environmental and economical gains.

AI for Telematics, Predictive Maintenance and Beyond

The momentum behind artificial intelligence (AI) is stronger than ever, with this game-changing innovation now impacting nearly every industry imaginable. AI is already transforming the day-to-day of many fleet managers; in 2024, this trend will continue through advancements in telematics, predictive maintenance and beyond.

As a fleet professional, you’re no stranger to telematics. Through specialized AI algorithms, these systems are becoming even more powerful at turning data into actionable insights. AI can enhance the value of driver-facing cameras by detecting potentially dangerous driver behaviors — think: fatigue or distraction — and instruct the driver to take corrective action. AI also has the potential to go beyond merely documenting unsafe driver behavior like swerving, instead detecting whether the behavior was necessary based on the situation. And by building a library of data over time, AI can detect abnormalities early to nip issues in the bud. One example? Proactively addressing a driver who repeatedly takes longer than usual to complete their route.

Along with telematics, AI is also enhancing the effectiveness of predictive maintenance. By leveraging a combination of historical and telematics data, AI-powered systems can pinpoint when a certain asset needs maintenance — down to the part and the day. This can remove the human guesswork and help you avoid costly maintenance issues that keep your assets off the road. 

Today’s fleet managers are dealing with more data than ever before. Without the right approach, AI has the potential to only increase your data deluge. That’s why it’s critical to devise a clear strategy for isolating, and acting upon, the most important insights. This is another area where Onward’s experts can help you make the most of innovative fleet technologies.

Automated, But Not Yet Autonomous, Vehicles  

Autonomous vehicles (AVs) may have garnered a lot of headlines in 2023, but experts say Level 5 autonomy is still a decade away. Despite this reality check, McKinsey predicts the autonomous driving opportunity will eclipse $300 billion by 2035. As we wait for this driverless reality to come to fruition, we’re witnessing considerable progress in automated capabilities — i.e., hands-off systems that take some tasks off the driver’s plate while providing significant safeguards. Many of these features are available today in the form of advanced driver-assistance systems (ADAS). 

Today’s ADAS systems go beyond cruise control, which was offered in 92% of vehicles as of 2021. To help drivers navigate heavy traffic, Audi’s “Traffic Jam Assist” takes over accelerating, braking and steering. GMC offers a self-driving Super Cruise feature in some Cadillac models, which it advertises as “the first true hands-free driver assistance technology.” Analysts expect these systems to progress rapidly in 2024, introducing more drivers and fleets to the potential of vehicle autonomy. 

In 2024, more fleets will start exploring the automated vehicle opportunity. One obvious implication is safety; a major study estimates that increased ADAS adoption in Europe can curb accidents by 15% by decade’s end. But automation also has the potential to transform how fleets think about driver education, insurance and even the TCO. Want to stay ahead of the curve? Contact our experts for practical advice on autonomous vehicles and other technological advancements transforming the fleet landscape. 

Connected Vehicles and Cybersecurity 

At this week’s Consumer Electronics Show, the world’s biggest technology gathering, Samsung and Hyundai are showcasing a major collaboration: The fusing of the connected car and connected home. Volkswagen unveiled its own connected car advancements, while tech giants Nvidia and Qualcomm are showcasing how they intend to power the vehicles of the future. It’s yet another sign that the automotive and tech industries alike are doubling down on the connected car — a term describing vehicles that use Internet connectivity to communicate with systems outside the car itself.

The connected vehicle has the potential to turn your fleet’s assets into dynamic data and communication hubs. But the benefits of connectivity also bring cybersecurity risks. A French cybersecurity firm recently hacked a Tesla within two minutes, opening the trunk while the vehicle was in motion and accessing the vehicle’s infotainment system. With OEMs still navigating the privacy and security implications of the connected car, fleet managers need to be keenly aware of the risks involved. In 2024, cybersecurity won’t just be a priority for automotive OEMs, but for the fleets that utilize vehicles with Internet access. Expect to see a host of solutions designed specifically for fleets that want to safeguard their data, drivers and assets from cyber attacks.

Upskilling 

Electric vehicles. Autonomous vehicles. The connected car. AI-powered platforms. Each of these technologies has a learning curve; in 2024, future-thinking fleets will get proactive about upskilling their teams accordingly. EVs have created a need for specialized electricians, which are currently in short supply — a scarcity that is prompting some fleets to train their technicians for the EV era. Meanwhile, autonomous vehicles and the connected car bring unique safety concerns that in-house teams must be equipped to address. In short, 2024 is the year when fleets will get serious about gaining the expertise needed to navigate the technology landscape effectively. This can come through upskilling existing team members for these new dynamics or partnering with specialists who have the expertise required to turn technology into measurable value.

From electrification to AI, the technologies that began to take hold in 2023 will only accelerate over the next 12 months. No matter your level of technology acumen, Onward is here to help you stay ahead of the curve by adopting the right solutions at the right time for your fleet. Let’s talk about your 2024 goals and how innovative technology — and the Onward approach — can help you achieve them. There’s no more powerful combination than groundbreaking technology and proven domain expertise.

This year’s El Niño winter is expected to bring cool, wet weather to the U.S. south and warmer, dryer weather to the north. But no matter where your fleet is located, winterization is critical. Now is the time to get serious about preparing your fleet vehicles for harsh, icy weather and whatever else Mother Nature throws its way this winter.

When you hear “winterization,” the first thing that comes to mind is likely driver safety — and the importance of that can’t be overstated. According to the U.S. Department of Transportation, 24% of weather-related crashes occur on snowy, slushy or icy pavement. An additional 15% happen during snowfall or sleet. But beyond its ability to reduce safety risks, winterization also brings another benefit: enhanced operational efficiency. Keep reading for our quick guide to winter-proofing your fleet for peak safety and performance.

What the Cold Does to Your Vehicle’s Performance

During winter, conventional gas vehicles typically suffer a 10% to 20% fuel economy loss in city driving and a 15% to 33% loss on shorter trips. Why? Because nearly every part of a vehicle is impacted by the cold and snow. 

Colder temperatures can change your oil’s viscosity, making it flow slower. That goes for both traditional oil and synthetics, which perform better in cold weather but can still thicken under chilly conditions. (Pro tip: Synthetics are also better at resisting freezing in frigid temps.) When your motor oil thickens, it’s more difficult to start your vehicle — and your engine often doesn’t run as effectively once it does get juiced up. 

During winter, we put our electrical systems to the test. As the days grow shorter, we tend to leave the lights on longer and run the heater more. At the same time, the cold weather makes it more difficult for your battery to charge. Older batteries typically struggle more to power starters and other components under cold conditions. And when it’s wet outside, moisture can lead to corrosion. We don’t have to tell you how that impacts the performance of your vehicle’s electrical components. 

For every 10° F drop in air temperature, tire pressures decrease about 1 pound per square inch. Cold weather can also make a tire’s rubber brittle; this is especially the case if you’re using summer tires. All-weather tires can also lose their treads when the temperature drops. Combined, these issues can cause safety risks and contribute to poor fuel economy during the winter months.

What else contributes to poor vehicle performance in the winter? The density of cool air, which increases the amount of aerodynamic drag that your vehicle encounters. This dynamic is especially significant when you’re traveling at highway speeds. Meanwhile, snowy or icy roads reduce driving speeds, which in turn reduce a vehicle’s fuel economy. The U.S. DOT estimates that arterial speeds decline by up to 40% on snowy or slushy roads. Even in light snow, highway speeds drop by anywhere from 3% to 13%. The Department of Energy cites speeds below 30 to 40 mph as especially draining for your vehicle’s fuel economy. 

Luckily, the right fleet winterization strategy can prepare your vehicles for top performance and minimize safety risks.

Your Fleet Winterization Checklist

When you’re busy managing a fleet, winterization can feel like a daunting task. And with December already at the midway point, you might think it’s too late — but it’s not. By using this quick checklist, you can prioritize the winterization tasks that are most critical to keeping your drivers and vehicles safe. (If you’re up-to-date on routine maintenance checks, you’re already one step ahead.)

Check the Battery

Test each battery’s voltage regularly to make sure it’s in an optimal range; that’s between 12.4 and 12.9 volts when the vehicle is turned off. Also check for signs of erosion or buildup that could prevent your battery from performing reliably in wintry weather conditions. 

Is the asset’s battery more than three years old? It might be time to get a new one, especially considering how much harder batteries have to work when the temperature drops. 

Inspect Your Tires

If you’re in an area where temperatures drop below 45 degrees in the winter, consider equipping your vehicles with winter tires. If you already have winter tires, or live in an area where all-season will do, make sure to inspect each tire for signs of damage and/or worn-down treads. Your treads should be 4/32 of an inch or more.

Most passenger cars require a psi between 30 and 35, but this can vary per vehicle. Check your owner’s manual for your asset’s optimal tire pressure. Then, cross-check your tire’s psi against that benchmark. It’s ideal to do a pressure check every four weeks in the winter. For the best accuracy, perform the check before the vehicle is operated for the day.

Examine the Air System

In today’s vehicles, compressed air is used for many essential functions, from air brake systems to automated manual transmissions and safety technologies. Before winter sets in, check the vehicle’s air system to make sure there’s no moisture. If moisture is present, it could freeze and cause the system to shut down. 

Survey Your Brakes 

In slippery winter road conditions, high-performing breaks are a must. Do you hear a high-pitched sound or notice a burning smell when braking? It might be time for a replacement. You can also visually inspect your brake pads, which should have a minimum depth of 3/32 of an inch. Any less and you likely need a new pair. 

Don’t Forget the Oil Filter 

Get your oil filter checked and replaced, if needed. Cold weather can cause significant oil pressure changes, which puts extra stress on your filter. 

Inspect Your Wiper Blades

Make sure each vehicle’s wiper blades are in good condition, with no cracks or frays. If you’re in a region with significant wintry weather, you can also explore heavy-duty blades designed for clearing away ice and snow. 

Top Off All Fluids

Before wintry weather arrives, make sure each vehicle is topped off with all the essential fluids. That includes windshield washer fluid, antifreeze, power steering and brake fluids, transmission fluid and, of course, motor oil. Pro tip: Your owner’s manual should include recommendations for fluid types in severe conditions. Make the manual your go-to resource for selecting the right fluid types for wintry weather. 

Prepare a ‘Winterization Kit’

Make sure each vehicle has winter-weather essentials, including blankets, snow brushes and an ice scraper. It should also include a first-aid kit, jumper cables, a flashlight and warning devices in case of an accident. 

Also stock each vehicle with extra washer solvent. If you’re driving on a road treated with salt, the road spray can cause havoc on your visibility — and require a surprising amount of washer solvent to clear away from your windshield.

The Importance of Driver Education 

Maintenance checks and winter-weather upgrades are critical components of any winterization strategy. However, driver education can also play a key role in reducing safety risks and enhancing operations during the winter season. Consider adding winterization sessions to your existing driver education program to encourage safe actions when the weather turns severe. 

In addition to winter driving safety, your driver training can also include these best practices for better cold-weather performance:

• Keep the vehicle parked in a warm place (i.e., a garage) when not in use. Doing so boosts the initial temperature inside the cabin and engine, which increases fuel efficiency.
• Combine trips to reduce the amount of time spent driving with a cold engine.
• Check tire pressure once per month.
• Keep cameras and sensors clear of ice and snow so that they function as intended.  

Is your fleet already utilizing telematics and GPS? Consider using that data to develop driver-specific safety profiles. Then, leverage those insights to customize your winter safety training based on each driver’s specific behaviors behind the wheel. (Hint: The same approach can be applied to your driver education all year long.)

The Bottom Line on Fleet Winterization

Winterization can seem daunting for busy fleet managers. But with the right combination of maintenance and driver education, you can prepare your fleet for optimal safety before the weather turns cold — and boost overall performance even amid snow, ice and dwindling temperatures. 

Do you need help winterizing your fleet? Contact Onward’s experts. We’re here to help you achieve peak performance and safety, even during harsh winter weather.

On a typical day, in-house fleet managers are already accomplishing a tremendous amount with limited resources. Even the smallest unexpected events can stretch your bandwidth to the brink. But of all the surprises involved with managing a fleet, few cost as much time, money and frustration as dealing with a property damage claim. 

Whether you choose litigation or handle the process internally, it’s rare to recover the full damage amount without an expert in your corner. Fleets that opt for litigation often face a long, drawn-out claim resolution process. (Think: Mounting attorney fees and time-intensive court appearances.) In some cases, your claim could be tied up in litigation for years. Given this reality, it’s not surprising that many fleets settle — and as former fleet managers, we can relate. But while a quick settlement saves you time, it can come at a steep financial cost: These recoveries are typically much lower than the actual cost of your asset’s damage. After lawyers take their piece of the pie, you’re often left with less than 20% of the claim’s original value. 

Other fleets try to handle the process internally. When roadblocks arise, they often let go of the claim altogether rather than invest in additional resources such as attorneys. The fleet is left to absorb the costs of this time-intensive process.

Roughly 20% of commercial vehicles are involved in an accident each year. According to a study funded by the U.S. Department of Transportation, these accidents cause employers more than $72.9 billion annually. In a landscape where in-house managers are stretched thin and fleets are more serious than ever about cost savings, we knew there had to be a better solution for Onward clients. We partnered with AnSR to deliver it.

The value of a fleet subrogation partner

At Onward, we’re always looking for ways to maximize value for our customers and their fleets. One way of doing so is through best-in-class partnerships with companies that share our commitment to optimizing fleet costs and efficiency. Combined with our in-house fleet management expertise, technology, analytics and white-glove service, these partnerships give our clients a level of value only possible with Onward.

In that spirit, we’re excited to join forces with Advanced Subrogation Resources (AnSR) — a fellow Oklahoma City business — to provide fleet subrogation solutions that help our customers maximize their recovery in the event of a property damage claim. As former in-house fleet managers, we can attest to the complexity of managing claims internally and the value of partners with this specialized expertise.

If one of your assets is damaged and you file a property damage claim, trust Onward and AnSR to manage the process — eliminating unnecessary litigation, maximizing recovery amount and removing headaches every step of the way. AnSR leverages arbitration to resolve disputes outside of court; it’s their secret weapon in damage claims resolution.

For busy fleets, the value of our fleet subrogation partnership speaks for itself.

• Calculate the damage’s full costs: The cost of your damage is about more than just repair and replacements. Onward and AnSR will review your fleet records, working together to calculate an accurate loss of use; that’s the expense incurred from running your business without the vehicle. Think: rental vehicles, outsourcing services while the asset is being repaired and other overlooked line items.
• Increase your chances of a win: With a 94% win rate and a track record as panelists on more than 5,000 arbitration cases, AnSR’s skilled experts know how to build a winning claim. Through their savvy arbitration, your fleet can avoid costly, time-intensive litigation.
• Maximize your recovery rate: AnSR’s recovery rate is 74%; that means they recover 74% of the dollars filed, to the tune of $450M over the last 12 years.The industry average recovery rate is just 40%. Because AnSR’s “dollars filed” reflect the damage’s full cost — which goes above and beyond mere repairs — your fleet stands to reap significant value.
• Close your claim faster: Rather than languishing for months or even years, choose a partner with an average cycle time of 30 days or less. 
• Stay informed at every stage: With Onward and AnSR on your side, you’ll benefit from transparent, timely communication so that you always know exactly where the claim process stands. White-glove service is our hallmark.
• Focus on your operations, not claims management: Trust Onward and AnSR to manage your recovery process from start to finish. By doing so, you can devote your critical resources to operations — not developing and managing an internal program for resolving claims.

In today’s fleet management landscape, every opportunity for cost- and time-savings is critical. Rather than settling for less than the costs incurred or waiting years for a payout, choose the partners equipped to maximize your recovery — no headaches, and no money left on the table. Contact Onward today to learn more.

When it comes to vehicle acquisition, fleets have a few clear routes: ordering from the factory, purchasing from dealer stock or leasing. Many fleets are exploring leasing to secure more favorable financing terms and reduce acquisition costs; we’ll talk all about leasing in a blog post coming next month. But for fleets looking to purchase vehicles, the choice often boils down to buying off the lot or ordering from the manufacturer. With many 2023 vehicle ordering windows opening soon, it’s the ideal time to firm up your acquisition plan.

When does it make sense to purchase vehicles direct from the factory, and which ordering windows are about to open? Read on for a quick overview of dealer stock vs. factory ordering, plus charts outlining the opening dates for popular GM, Ford and Dodge models. 

Benefits of Factory Ordering 

Buying from a dealer will get you vehicles faster than factory ordering, and it doesn’t require as much upfront planning. Still, there are numerous benefits to factory ordering — especially if standardization and cost optimization are on your list of fleet management goals.

• Get the exact features you want: Dealers stock their lots with vehicles they think buyers want. If you buy from the lot, you’re beholden to the available inventory. That means you could wind up paying for features you don’t need — or having to go without the features you do need. With factory ordering, you can choose the exact features required for your fleet. It’s a Goldilocks-type scenario: Rather than getting more or less than you need, you get a vehicle that’s just right. 
• Standardize your fleet: Fleet standardization is one of the most overlooked strategies for optimizing your Total Cost of Ownership (TCO). Standardization might seem out of reach when you’re buying vehicles off the lot, but factory ordering makes it possible to purchase numerous models with identical features. Timing is everything, especially if you’re an established fleet and not building from the ground up. But generally speaking, the sooner you can standardize, the better. By standardizing your fleet, you can optimize fueling, maintenance and other line items that directly impact your TCO.
• Reduce costs: By only paying for the features you actually need and standardizing your fleet, you’re already on your way to cost savings. Factory ordering can also help you save on the sticker price per vehicle. Many manufacturers, like Ford, offer incentives for fleets that purchase direct. (Interested in factory ordering but need help taking advantage of every available incentive? Onward can help!)

Key Factory Ordering Windows (2023)

With factory purchasing windows about to open for many top fleet picks, now is the time to plan your orders for popular GM, Ford and Dodge models.

• Windows already open: Chevy Silverado 2500, Chevy Silverado 3500, GMC Sierra 2500 and GMC Sierra 3500
• Windows opening soon: Chevy Silverado 1500 and GMC Sierra 1500 (June 1); Ford Maverick, F-250, F-350, F-450 and F-550 (July 17)
• Windows not yet finalized: GMC Canyon, Ford F-150, Dodge 1500, Dodge 2500, Dodge 3500 and Chevrolet Colorado 

Keep scrolling for ordering windows and production start dates for popular GM, Ford and Dodge models. Don’t see the vehicle you’re interested in? Reach out to our team so that we can get you the information you need.

Making the Most of Factory Ordering

From feature selection to manufacturer incentives, there are many perks to ordering direct — but also lots to navigate. If you need help optimizing your factory ordering, drop us a line. Our experts are equipped to guide you through the process quickly and efficiently so that you can get the right vehicle at the right price, while the 2023 ordering windows are still open.