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.

Sample Manufa cturerModelYearTransCargo Capacity (cubic feet)Pts City MPGPts HWY MPGPts Alt- FuelPts Lease PricePtsMSRPPtsTypeWarranteePts Jeep Patriot (sport) 2014AutomaticBehind First-Row Seat: Crossover3yr Basic Limited1 Behind Second-Row Seat: yr Powertrain Rear Seats Folded:53.5 Jeep Compass (sport) 2015AutomaticBehind First-Row Seat: yr Limited 2 Behind Second-Row Seat:22. Rear Seats Folded:53.6 5yr powertrain Ford Focus Electric 2014 Electronic Continuously 14.5 trunk1 110 Equiv Equiv Miles full batt Small car 3yr Bumper to bumper With back seats folded 5yr Powertrain * 20 Hr to full 110v Outlet * 4 Hr full 240V outlet Formula Total Points = City MPG + Hwy MPG +Cargo +Warranty + MSRP(or lease) / 5 + Alt Fuel VehiclePurchaseLease Total PointCty MPGHwy MPGCargoWarrantyMSRPAlt FuelLease priceTotal Points Patriot (sport) Compass (sport) Focus Electric

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

Conclusion