Employee Vehicle Sales a Welcome Benefit

Jul 28, 2009
As fleet vehicles become older and need to be replaced, business owners must decide what to do with the older vehicles.  Generally, the vehicles in question are simply sold at auction or relinquished to a leasing company.  But recently, fleet owners have ramped up programs that offer the out-of service vehicles to be sold to drivers at low cost, which saves companies money in selling costs and offers a valuable benefit to employees.

For many employees, the prospect of owning a familiar vehicle for a low price is very enticing.  Employee vehicle sales have been met with great success at companies such as Mission Foodservice, where fleet facilities manager Chris Syed confirmed that at least 45 percent of the company’s out-of-service vehicles are resold to its employees.  The program has been consistently successful; Syed reported that “The percentage has remained steady over the past several years.” Mission Foodservice operates a 300-vehicle fleet, leased from LeasePlan USA. With fleet vehicles being replaced every four years or so at Mission Foodservice, there is a steady flow of vehicles in need of new owners.  The vehicle’s regular driver is given the first rights to purchase the vehicle, and the sale is opened to the rest of the company if the driver declines.  The vehicles undergo safety inspections on-site and will not be sold to employees if they have any safety issues.  The best part of the deal for employees is the selling price; drivers pay wholesale price for the vehicle while other employees pay, according to Syed, “somewhere between wholesale and the Kelley Blue Book private party price.”

The program became so popular that Syed could no longer handle all of the work on her own.  In October of 2006, five years after the program was introduced, Mission Foodservice hired Flexco Fleet Services to handle the overwhelming demand for the program.  Since the move to Flexco, the employee resale program has been just as popular as ever.  Syed remains confident in the need for employee resale.  “Employees love this program. They view it as a bonus.”

Photo courtesy of Caitlinator under the Creative Commons License