THE CAR AND TRUCK FLEET AND LEASING MANAGEMENT MAGAZINE
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Vehicle Replacement

What’s Your Backup Plan?

Despite all leading-edge technology and bleeding-edge regulations that are being thrust upon the fleet market, there is a gaping hole in many fleet plans. What to do when a vehicle, or a whole bunch of vehicles, are suddenly not available?

Deferring Vehicle Replacements is Counter-Productive to the Intended Goal

During economic uncertainty, senior management demands expense reductions and limits capital expenditures. Since fleet is usually among the top 10 corporate capital expenditures, there is pressure to defer vehicle replacements. However, this cost-containment strategy misses the point that all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. Cost reductions in acquisitions are often offset by rising costs elsewhere.