Truck lifecycles can be calculated to the mile and the dollar. This can help fleets replace vehicles at the optimal moment.
This section delves into average fleet age and replacement cycles, as well as total units for various agencies.
Corporations continue to be uncertain about the strength of the economic recovery. As a result, companies remain cautious about their fleet ordering volumes. Many are right-sizing vehicles and lengthening replacement cycles.
During economic uncertainty, senior management demands expense reductions and limits capital expenditures. Since fleet is usually among the top 10 corporate capital expenditures, there is pressure to defer vehicle replacements. However, this cost-containment strategy misses the point that all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. Cost reductions in acquisitions are often offset by rising costs elsewhere.
KINGMAN, AZ - Mohave County is going out on bids for 13 new cars and trucks for various county departments.
Vehicle replacement policy is one of the most critical aspects of fleet management. Nearly all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. In a recessionary economy, senior management demands expense reductions and there is pressure to defer vehicle replacements. However, such a policy change could actually prove to be counterproductive to the intended goal.
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