Replacement Cycles - Tagged Posts

Readers Are Talking About: Scheduled Replacement Cycles

To facilitate discussion of today’s industry challenges, Automotive Fleet offers a platform for fleet managers and other fleet professionals to exchange their diverse opinions and perspectives.

Acquisition Strategies to Work Around Replacement Vehicle Shortages

Fleets need to be more flexible with the type of vehicles they order in the next couple of new-model year ordering cycles. Here are six vehicle acquisition strategies that can serve as potential work arounds to mitigate some of today's inventory constraints.

New Vehicle Shortages Puts Emphasis On Increased Fleet SMR Schedules

The ongoing semiconductor shortages, with the resultant delays on new vehicles, is impacting fleet replacement cycles. As a result, many fleets are now facing lifecycle extensions as shortage of replacement vehicles becomes a pressing issue, which in turn places a premium on Service, Maintenance and Repair (SMR) schedules.

Shortcycling Re-emerges to Leverage the Strong Used-Vehicle Market

Today’s used-vehicle market is the best it’s been in the history of fleet management and my anecdotal forecast is for it to remain strong through the balance of 2021 and into calendar-year 2022. As a result of these favorable market conditions, some fleets have begun shortcycling some of fleet vehicles.

5 Things Fleet Managers Need to Know About the Semiconductor Chip Shortage

It’s critical government fleet managers are aware of the impacts this shortage has on their vehicle replacement cycle.

Extended Cycling Doesn’t Achieve the Intended Goal

Extending replacement parameters is often counterproductive to the intended goal. Longer service lives increases unscheduled maintenance with longer downtime and increases the number of units operating outside of warranty.

Negative Consequences to Extended Vehicle Cycling

Extended replacement cycles for short-term capital expenditure savings often have the unintended consequence of resulting in greater long-term expenses.

What's Impacting Truck Replacement?

Big Data, tax law changes, new vehicle options, fuel prices, and more, are impacting fleets decisions about when to replace their trucks.

TCO Is Not a Static Number

A vehicle’s total cost of ownership is comprised of its fixed costs, operating expenses, and depreciation per year or during the course of its service life, minus its anticipated resale value. During the course of a vehicle’s service life, TCO is subject to change due to a vehicle’s age and numerous external factors, which has a direct bearing on replacement policies.

Overt & Hidden Costs of Extending Truck Replacement

Extending truck replacement cycling parameters beyond stated fleet policy is typically a short-term tactic used by senior management to solve a budgetary constraint; however, there are long-term fleet consequences to this strategy.

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