THE CAR AND TRUCK FLEET AND LEASING MANAGEMENT MAGAZINE
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Replacement Cycles

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.

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 Should Use Mass-Market Vehicles, Report Says

The USPS could save as much as $1.9 billion by using modified, off-the-shelf mass-market vehicles and upgrading its fleet at least once in the next 20-25 years, according to a report from the organization Securing America's Future Energy (SAFE).

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.