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.
The Canadian Broadcasting Corp. runs three Kenworth Class 6–7 cabovers as mobile production units to disseminate news on the fly.
Think fleet costs decline as equipment ages? If so, you’re only looking at some of the costs involved. Learn how a simple best practice can overcome this pitfall, and lead to win-win outcomes with customers beyond all expectations.
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.
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 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.
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).
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.
A variety of approaches can be used, each with their own advantages and disadvantages that must be considered.
Truck lifecycles can be calculated to the mile and the dollar. This can help fleets replace vehicles at the optimal moment.
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