Best Practice Guide to Fleet Replacement

Do you know when to replace vehicles in your fleet? Download our best practice guide to vehicle fleet replacement and learn how to find the ideal time to replace your vehicles.

There’s much more to fleet management than providing cars for your staff. You need to make sure you minimise the cost of your vehicle fleet and maximise its value. That means knowing when vehicles are the end of their useful life.

It’s all about knowing when your fleet vehicles stop providing value and start incurring unnecessary costs.

Capital costs decrease over the life of a vehicle while operating costs increase. So, there comes a time in a vehicle’s life when it is no longer cost-effective.

What are vehicle capital costs? This is the depreciation in its value over time, as its age and mileage increases — the reduction in its second hand market value.

What are vehicle operating costs? These are the expenses incurred to keep a vehicle on the road: registration, insurance, fuel, road user charges, maintenance, tyres, out-of-warranty repairs, temporary replacement rentals, etc.