Check out the latest trends in business vehicles and the smartest ways to meet your automotive needs while still saving money.

Fluctuating gas prices, tightening credit standards and changes in the automotive leasing industry are making it tougher than ever for small businesses to fulfill their fleet needs. There is also increasing pressure on companies to take responsibility for their role in protecting Mother Earth. Fortunately, savvy business owners can find a happy medium that allows them to meet their fleet needs, save money and gain points in their community for reducing their businesses’ environmental impact.

Know Your Options

One thing is certain: Gas prices are going to continue to fluctuate. There will be periods of relief where the gouging at the pump won't run quite as deep, but there is a limited supply of prehistoric reptile ooze, and as that supply diminishes, demand will drive gas prices even further into the stratosphere. It’s the perfect time to take a look at the latest alternatives to conventional petroleum-burning internal combustion engines and start saving at the pump. Here’s a rundown of your options.

Gas-Electric Hybrids:  A combination of a gas-powered engine and electric motors, this is the easiest technology to jump to as it uses the same fuels readily available at fueling stations today. The three leading types of hybrids are mild, parallel and serial, and the amount of fuel efficiency and environmental impact varies depending on the type chosen.

--  Mild hybrids generally feature an engine that cuts off when the vehicle is idle, then restarts with the press of the accelerator. Like all gas-electric hybrids, they are combined with a regenerative braking system that recoups electrical power during braking to be reused at idle.

--  Parallel hybrids operate with the electric motor and gas-powered engine working together, switching back and forth between the two depending on how much power is needed. At low speeds the electric motor will usually function alone, which equals zero emissions while sitting in traffic.

--  Serial hybrids are the next stage in the game; GM is in the forefront of their development with the Chevrolet Volt. Initially it was intended to be solely an electric vehicle, but GM has had difficulty developing the battery technology to make that feasible. Instead, this concept is paving the way for vehicles that run for a limited range before an internal combustion engine kicks in to recharge the batteries that power the electric motor.

Diesel has been cleaning up its act, and in addition to being cleaner than gasoline engines, diesel engines with proper maintenance have longer life spans and typically get better mileage. The downside is fuel availability. Not all gas stations carry diesel, and in some areas it’s only available in truck stops.

Ethanol, also known as E85, is derived primarily from corn, though there are methods for creating it from other plant sources such as grasses and green waste, and more are in development. The fuel is composed of 85 percent ethanol and 15 percent gas. As with diesel, the downside is availability. However, vehicles that run on ethanol can also run on gasoline, so you won’t run out of fuel searching for your next tank of gas. Another downside: A tank of ethanol, while cheaper, does not have the same range as a tank of gasoline.

Natural gas or Compressed Natural Gas (CNG) vehicles also have a reduced range, but as alternative fuel vehicles, qualify for tax breaks and single-rider HOV (High-Occupancy Vehicle lane) access in several states. Availability used to be a problem, but no longer thanks to home fueling stations, which allow you to hook the vehicle up to any natural gas line to refuel.

Electric vehicles are available, but most have severely limited ranges or top speeds, with a little over 100 miles being the best distance. In addition, most parking lots do not have outlets for recharging electric vehicles, so routes have to be well thought out in advance.

Hydrogen vehicles, which emit only water and oxygen as exhaust, are still in the developmental stages at best. Honda has begun selling the FCX Clarity hydrogen vehicle, but in very small numbers, and you have to fill out a questionnaire to see if you qualify to participate in the initial program. One of the requirements is that you must live close to a hydrogen fueling station, which is still a rarity.

Gasoline is not down and out yet. There are gasoline vehicles running cleaner than ever with Super Ultra Low Emission Vehicle (SULEV) ratings. Some hybrids fall into this category as well, but gasoline SULEV vehicles generally don’t come with the premium price tag of hybrids, and some, such as the Ford Focus, actually run cleaner than hybrids, so you can still make a positive impact on the environment without breaking the bank.

The Used Fleet Alternative

As leasing options become scarce and credit harder to obtain, businesses may want to take a look at used fleet sales. In the past, leasing has been a smart way to lower the cost of getting into a new vehicle. Businesses typically turn over their fleets every couple of years, and leasing allows them to do so without taking the full depreciation hit the minute the vehicle leaves the lot. Instead, they share that cost with the purchaser who buys the vehicle when it is turned in at the end of the lease term.

However, as the credit crisis continues to unfold and gas prices rise, consumers and businesses are flocking from large gas-guzzling SUVs and pickups into smaller, more fuel-efficient vehicles. The mass exodus has created a glut of used light trucks and utility vehicles, decreasing their value, and automakers only see the trend continuing for the foreseeable future. Many manufacturers are taking a bath on lease turn-ins, which are selling at a fraction of the resale price that was projected back when the lease contracts were written.

To compensate for the trend, more and more automotive manufacturers are shying away from the leasing business. Chrysler has announced it will no longer offer leasing products, and GM and Ford have stated they will cut back on the number of leases they offer. Even Wells Fargo has announced that it will leave the automotive leasing business. To help buyers through the credit crunch and lack of leasing options, manufacturers have stated they will work harder to make vehicles more affordable so they can be bought instead of leased.

But for some, this may not be enough—and for those, there may be a silver lining in the gloomy leasing industry cloud. Pre-owned pickups and SUVs have dropped considerably in price, making them an exceptional value for businesses in industries where such vehicles are a necessity. Factoring in slightly higher maintenance costs on a 2-year-old vehicle with bargain basement pricing makes the used fleet market an attractive alternative if your business can’t qualify for enough credit, if you can’t find a lease for new vehicles, or if you just want to save money. Remember, most vehicles have longer life expectancies than they did even 10 years ago. Certified pre-owned vehicles are typically as reliable as new ones.

There's an environmental advantage to purchasing used fleet vehicles as well: It’s the ultimate form of recycling. With a glut of large vehicles, purchasing them and extending their useful life means spreading their carbon footprint over several years instead of creating the need to build new vehicles.

Keep On Truckin’

For most businesses, keeping the vehicle fleet running equates to keeping the business running. Vehicles are a major investment, and to maximize the return on that investment, it’s important to keep vehicles on a regularly scheduled maintenance program so you can control when vehicles will be pulled for service instead of waiting for breakdowns to dictate it. The key is developing that plan, and there are several options available.

For smaller businesses, the most economical way may be to employ fleet maintenance tracking software. There are many to choose from, offered by outside software developers as well as OEMs. Available in a range of prices, they all allow easy in-house tracking of your fleet needs. Popular products include Fleet Maintenance Pro (mtcpro.com), FleetWise VB (fleetwisevb.com) and Trackum (trackum.com). Many dealers offer maintenance programs that are tailored to smaller businesses and, in conjunction with fleet management software, will keep your fleet operating at optimum capacity. There are also comprehensive packages that cover everything from vehicle selection to fuel management plans.

Look for software that lets you create a maintenance plan taking into account vehicle warranties, cost of repairs and mileage.

If you don’t want to manage your fleet in-house, consider outsourcing. As with fleet management software, external fleet management can be contracted from either OEMs or from outside fleet management companies. Both offer monthly billing.

Working with commercial service managers, fleet management services work to maximize vehicle downtime by tracking specific vehicle trends--the actual wear and tear the vehicles are experiencing--so money is not wasted on unnecessary services. After all, not all roads are created equally; some will inflict more damage than others. Because of this, manufacturers’ recommended service intervals should be tweaked to the demands placed on each individual vehicle.

Finally, one method to keep your fleet on track (literally) is the use of GPS tracking software such as Tracknet. Since unscheduled trips result in more frequent maintenance, making sure that your drivers know where they’re going—and that you know where they are—is key to saving time and money. Using any of the GPS tracking programs available, business owners can not only be sure their trucks are where they are supposed to be, but at any given time tell  customers exactly their delivery is if they call for status. (Added bonus: If the vehicle is stolen, the GPS locator helps aid police in recovery.)

By managing your fleet properly, you’ll make the most of your investment—and help keep your cars, and your business, running smoothly.

Fuel-Saving Tips

Getting the most out of a tank of gas is easy if you just follow a few simple guidelines. The same rules that apply for maximizing mileage in personal vehicles apply to fleet vehicles as well.

--  Maintain proper tire pressure. Underinflated tires slow vehicles down and increase tire wear.

--  Avoid racing from red light to red light. Jackrabbit starts burn fuel quicker than smooth acceleration, and typically all they do is increase the time you spend sitting at the next traffic signal.

--  Stay within the speed limit. Slowing down to 55 mph or even 65 mph uses less gas than holding the pedal down to go 70 mph or more.

--  Use cruise control to maintain a constant steady speed. Vehicle speed fluctuates more when it’s controlled manually. Let the cruise control prevent jabs to the accelerator to regain speed.

--  Keep up with scheduled maintenance. A well-tuned vehicle will always perform more efficiently than one that has been neglected.

--  Keep tailgates on pickup trucks up, not down. Contrary to popular belief, having the tailgate up creates an “air bubble” in the bed that actually forces air coming from over the cab up and over the bed. To improve pickup aerodynamics, put a tonneau cover on instead.

--  Minimize A/C use by using the car’s vents when possible. A/C compressors are a drag on the engine, decreasing efficiency.

--  Keep windows up. This maximizes air flow over the vehicle instead of trapping it inside.

--  Use the recommended grade of gasoline. Using premium in a car that requires unleaded gains you nothing, but using premium when it is required improves performance and mileage, and may reduce premature wear on the engine.

Vernon Heywood is a writer in Southern California who specializes in automotive topics.