At VEMA, we do two things. We provide:
- Vehicle financing for public sector organizations through leasing.
- Fleet Management Services.
What is Leasing and Fleet Management?
Leasing – a financial arrangement where you pay for the part of the vehicle life that you plan to use, which is the amount by which the vehicle depreciates. When you buy a vehicle, you are paying for the vehicle’s entire life up front, even if you are planning on using it for only two to three years before disposal.
Fleet Management – when you have more than one vehicle, and therefore more “life cycles” to manage. Fleet Management is VEMA’s speciality. We create a Fleet Management System that captures and monitors all of the information involved with each vehicle life cycle in your fleet. You will realize greater efficiencies and savings when you can manage each vehicle within the broader context of your complete fleet.
At the centre of Fleet Management is a Fleet Management System. A Fleet Management System is a network of systems that captures and monitors all of the information involved with each Vehicle Life Cycle in your fleet. It’s the key to monitoring thousands of pieces of information.
At VEMA, we designed our own Fleet Management System (called “Keys™”) specifically for the unique needs of public sector organizations.
Here’s an example of how Fleet Management works.
Let’s say for example that you leased two new 1/2 tons for a four-year term. When you ordered the vehicles you projected that both trucks would perform similar jobs. You anticipated approximately 25,000 km per year for each vehicle. Halfway through your lease term you identified that:
- 1/2 ton A had put on almost 75,000 km, while
- 1/2 ton B was significantly under your projection, with only 35,000 km.
In effect, vehicle A was depreciating more rapidly than vehicle B.
- If vehicle A continued its current work load it might not make it to the end of the lease in acceptable condition.
- This would reflect in a lower resale value for vehicle A.
After receiving this information, you decided to “flip” these two vehicles allowing you to ensure vehicle B would have the heavier usage. In this instance by rotating these two vehicles you were able to maximize your resources and transportation dollars.
Fleet Management is a daunting task because of the vast amounts of detailed information to be tracked and monitored for each vehicle (think about the details involved with insurance alone!). Fortunately this is what VEMA does. Effectively managing public sector fleets is our specialty.
To understand Fleet Management you need to start with a look at the Vehicle Life Cycle.
The Vehicle Life Cycle involves tracking and managing all of the decisions, usage information and expenses involved with a vehicle from the time you’ve identified the need for a vehicle, until its disposal.
The goal of effectively managing each vehicle’s life cycle is to pay the minimum amount in acquisition and maintenance costs while getting the maximum return at disposal.
VEMA’s Fleet Management Service Lease
Our Fleet Management Service Lease is a legal agreement between VEMA and your organization. When you sign a lease, you are agreeing to accept the terms and conditions of the contract including the fixed monthly rate and residual value (see the link below for a full explanation of Residual Value). We calculate fixed rates based on overhead costs, the capital cost of the vehicle and interest. The fixed rate also includes all of our Fleet Management Services.
Please click the link below to see all of what we can do for you:
Fleet Management at VEMA
Fleet Management through VEMA gives you the ability to utilize the safest, most environmentally friendly vehicles and equipment, at the lowest possible cost.