Practice Test GeeksCAFM - Certified Automotive Fleet Manager Practice Test
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Asset Management Flashcards

7 cards from real CAFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Asset Management flashcards as text

  1. Which disposal channel typically yields the highest net return for a fleet selling a large volume of used vehicles?

    Answer: Sealed-bid sale with a reserve price to qualified buyers

    A sealed-bid sale with a reserve price attracts competitive offers while protecting against below-market results, often outperforming open auction for high-volume disposals.

  2. A fleet manager is preparing a business case to replace aging vehicles. Which financial metric demonstrates the annual cost burden of the current aging fleet?

    Answer: Average cost per mile including maintenance, fuel, and downtime

    Cost per mile consolidates fuel, maintenance, and downtime expenses into a single comparable metric that exposes the financial burden of aging assets.

  3. Under an open-end lease structure, who bears the residual value risk at lease termination?

    Answer: The lessee (fleet operator)

    In an open-end lease, the fleet (lessee) is responsible for any shortfall if the vehicle sells for less than the guaranteed residual value.

  4. A fleet manager sets a policy to replace vehicles at 60 months or 100,000 miles, whichever comes FIRST. This is an example of:

    Answer: Dual-trigger replacement criteria

    Dual-trigger replacement criteria establish two independent thresholds — time and usage — so the vehicle is cycled when either limit is reached.

  5. Which of the following BEST describes the role of telematics data in asset management?

    Answer: It provides real-time and historical usage data to inform utilization and maintenance decisions

    Telematics captures mileage, engine hours, idle time, and fault codes, giving fleet managers data-driven insight into utilization and asset condition.

  6. A fleet department must reduce its asset base by 15% due to budget cuts. Which step should come FIRST?

    Answer: Analyze utilization data to identify the least-used and highest-cost assets

    Data-driven utilization analysis ensures the right vehicles are targeted for disposal rather than making arbitrary cuts based solely on age or cost.

  7. Which term describes the practice of using one common vehicle model across multiple departments to simplify parts inventory and maintenance training?

    Answer: Fleet standardization

    Fleet standardization reduces complexity by limiting the number of makes and models, lowering parts inventory needs and streamlining technician training.