Adjusting to Tariff Uncertainty
Without question, tariffs (and other economic headwinds) continue to fuel uncertainty for fleet operators. How tariffs will affect the automotive industry, including fleet operations, remains extremely fluid and Holman continues to monitor the situation closely to provide regular updates and guidance as these policies continue to evolve.
To help fleet operators stay ahead of shifts in pricing and supply chain performance, Holman’s Ed Powell recently spoke with Commercial Carrier Journal to provide his perspective on the potential impact of tariffs. In the article, Ed noted that as fleet operators navigate these economic challenges, most fleets likely fall into one of two categories.
“Those fleets who adhere closely to optimal vehicle replacement cycles and preventative maintenance schedules are likely well positioned to adjust and mitigate the potential impact of tariffs.”
Ed highlighted that these fleets can opt to extend lifecycles if necessary and use this additional time to refine their vehicle sourcing strategy to explore new makes, models, and upfit solutions that minimize the impact of these economic challenges. He also shared that tariffs are likely to amplify these challenges for fleets who are already struggling with aging and/or poorly maintained vehicles.
“For many, purchasing new vehicles now, even with the added cost of tariffs, may be more cost effective than continuing to leave aged or poorly maintained vehicles in service.”
For those challenged to optimize fleet performance amidst tariff uncertainty, Ed suggested leveraging flexible financing strategies, including leasing, to help minimize the cost impact and ensure they can maintain the capital their business needs. He also pointed to innovative solutions such as equity refinancing and purchase/lease back strategies as popular methods as many fleet operators look to leverage positive equity to help offset rising costs.
To read the entire article, please visit CCJDigital.com. For additional insight on how these policy changes may impact your strategic fleet planning, visit Holman’s Tariff Resource Hub which is regularly updated with the latest news and developments.
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