Awesome Sales Inc.

Scenario

• New 20 vehicle fleet• Low emissions vehicles• Fuel efficient vehicles• Large cargo space• Purchased or lease fleet• Cost efficient

Why

• Amount of information available• Analyze and decide the best option available• Financial comparison• Vehicle details

Starting Guidance

• Purchase or otherwise acquire• 20 small truck, car, or SUV fleet for sales staff• 200 miles per day, per sales employee

Courses of action

Purchase• The car is owned to sell at

any time• Not locked into any type of

fixed ownership period• Any mileage without

economic penalties or restrictions

Lease• Lower out-of-pocket costs when

acquiring and maintaining the car

• Leases require little or no down payment

• Owning a new car every few years.

• Not forced to absorb the full depreciation cost of the vehicle.

• Leasing a car may offer tax advantages if the vehicle is used for business purposes

Courses of action

Purchase• Reasonable down payment,

initial out-of-pocket cost is higher

• Depreciation• Maintaining

Leasing• Usually charge higher

coverage costs for leased vehicles

• Mileage restrictions• Will never own the vehicle

Sources

• US News – Automobile Ranking and Reviews• Kelly Blue Book• MotorTrend

Selection Process

What is optimal vehicle types for sales staff

What is necessary for average daily use

What best represents the company

What best fits the goal of carbon footprint reduction

Criteria used for selection

• Vehicle classes• American manufacture• MPG• MSRP• Cargo Capacity• Warrantee• Alternative fuels• Mitigating(negatives)

Order of factors• Environmentally “better” focus• Price• Cargo• Other• Negative factors

Methodology• Assigned points when ranked in order best to worst• Allows for cross-class equality and direct comparison• Enables consideration of multiple factors.

SampleManufacturer Model Year Trans Cargo Capacity (cubic feet) Pts

City MPG Pts

HWY MPG Pts

Alt-Fuel Pts

Lease Price Pts MSRP Pts Type Warrantee Pts

Jeep Patriot (sport) 2014 Automatic Behind First-Row Seat:63.4 3 23 15 30 12 0 15151 3 16395 16 Crossover 3yr 36000 Basic Limited 1

Behind Second-Row Seat:23.0 5 yr. 100000 Powertrain

Rear Seats Folded:53.5

Jeep Compass (sport) 2015 Automatic Behind First-Row Seat:62.7 2 23 15 30 12 0 17311 2 18795 15 3yr 36000 Limited 2

Behind Second-Row Seat:22.

Rear Seats Folded:53.65yr 100000 powertrain

Ford Focus Electric 2014 Electronic

Continuously 14.5 trunk 1 110 Equiv. 16 99

Equiv. 1676

Miles full

batt.5 27499 1 29170 6 Small car 3yr 36000 Bumper to

bumper 3

33.9 With back seats folded 5yr 60000 Powertrain

* 20 Hr to full charge @ 110v Outlet* 4 Hr full charge @ 240V outlet

FormulaTotal Points = City MPG + Hwy MPG +Cargo +Warranty + MSRP(or lease) / 5 + Alt FuelVehicle Purchase Lease

Total Point Cty MPG Hwy MPG Cargo Warranty MSRP Alt Fuel Lease price Total Points

Patriot (sport) 9.40 15 12 3 1 16 3 6.8Compass (sport) 8.80 15 12 0 2 15 2 6.2Focus Electric 13.40 16 16 1 3 6 5 1 12.4

Budget

• $ 4 Million annual profit• No more than $250,000 per Qtr. for vehicle

replacement

Conclusion