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Replacement Cycles

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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Long-Term Impact of Longer Truck Replacement Cycles

The more expensive the asset, the longer it is kept in service; however, the need for short-term cost savings prompts some fleets to even further extend cycling parameters and defer replacements. But, what are the consequences?

Vehicle Depreciation Remains Steady

Vehicle depreciation is impacted by a number of factors, from supply and demand to overall economic conditions. While 2015 was relatively stable for depreciation, some challenges are on the road ahead.

USPS Considers Euro Fleet Replacement Model

The U.S. Postal Service's Office of Inspector General (OIG) has recommended four best practices and strategies for replacing vehicles based on a study of postal operations in the United Kingdom, Germany, Switzerland, Sweden, and Finland.

How to Calculate Optimal Replacement Cycles

A variety of approaches can be used, each with their own advantages and disadvantages that must be considered.

When an Extended Warranty Makes Sense...and When it Doesn't

To determine whether an extended warranty is right for your fleet, review vehicle usage, lifecycles, and replacement policies.

Running Trucks Till the 'Wheels Fall Off' is Expensive and Counter-Productive

The cliché in fleet management is that trucks are kept in service until the wheels "fall off." In many cases, this isn’t too far from the truth. Typically, the more expensive the asset, the longer it will be kept in service, especially units upfitted with expensive auxiliary equipment. However, as study after study shows, extended truck replacement cycles often have the unintended consequence of resulting in greater long-term expenses and degradation in worker productivity.

Policy Versus Guideline: The Trend Toward Flexible Replacement Cycles

Nearly all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is taken out of service. A growing number of fleets are shifting to more flexible vehicle replacement cycles. Some fleets no longer call their replacement cycle a policy and instead call it a “guideline.” They want to reserve the right on determining when to take a vehicle out of service based on prevailing market conditions rather than predetermined mileage and months in service.

‘Breaking’ the Rules to Optimize Performance

Some call it thinking out of the box, pushing the envelope, or just plain breaking the rules. “Common wisdom” isn’t always the best way to keep a fleet running cost efficiently.

Overall Fleet Car Maintenance Costs Remain Flat in 2010-CY

A decrease in average tire expenses helped offset slight cost increases for higher frequency of repairs and preventive maintenance.