Do you know when to RENEW your FLEET?

05 Sep, 2017 09:00

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To achieve satisfactory results, there are several measures to be taken at the level of FLEET MANAGEMENT, which, in turn, requires the planning and control of several factors, from human resources, to the replacement of old vehicles. Since the latter is an intrinsic factor to the universe of companies with their own distribution service, whose RENEWAL OF THE FLEET must be carried out periodically. However due to the associated costs (financial resources), this process is usually done every 5 years, becoming costlier and multiplying the company risks.

This is in fact a question that often arises among Fleet Managers: "When should I renew the company's fleet?!". But in fact, there is no mathematical answer! There are several factors that have to be analyzed before making this decision, always taking into account the costs reduction and the productivity increase and results.

We will then identify the key factors that you should take into account when making this decision. Follow the information below!

KEY FACTORS TO ANALYZE FOR FLEET RENEWAL

- RESALE VALUE REDUCTION

Immediately from the moment the vehicle exits the stand, the depreciation process begins. Being sure, that it is during the first months/ years (depending on the type of use, care, maintenance, etc.) that the greatest loss of market value occurs, although this devaluation slows slightly over the years. Thus, in the absence of other problems, vehicles must be replaced at the end of their life cycle (it can vary between 5 and 8 years).

If you have already bought a car, you know that when you want to sell it, you will never get the same value you paid for it. Reason why, as Fleet Manager, should analyze the depreciation of vehicles and realize whether or not it is feasible, renew the fleet.

- MAINTENANCE MAJOR NEED

As expected, vehicle depreciation also influences fuel consumption and number of car workshop visits, with maintenance costs increasing over time. For this reason, the periodic maintenance is crucial, if you want to have a fleet of vehicles that are safe, efficient and in good condition. Although, the aging of the vehicle forces corrective maintenance more frequently and therefore, more and more expensive.

Keep a maintenance history with: oil change, tire changes*, mandatory overhauls, corrective maintenance and car insurance value.

*Tire Changes: ex.: Put the rear tires in front to ensure a similar level of wear and tear between each one, providing greater balance to the car, because if one of the tires is more worn on one of the axles, there is an imbalance, especially on wet roads.

- FUEL CONSUMPTION AND GAS EMISSION INCREASE

The older the vehicle, the greater the fuel consumption, thus accounting for one of the highest fleet costs. Therefore, it should consider renewing the fleet, as newer vehicles have fuel saving systems and meet European emissions standards.

- OLD VEHICLES VS NEW VEHICLES

In addition to the notable reduction in fuel consumption and maintenance costs, the most recent vehicles currently have several technologies that optimize their driving and their travel, such as driver comfort, road safety, performance and more.

- INVESTMENT ANALYSIS

Despite the high costs in the short term, fleet renewal represents a profitable investment for the future of the company.

- RESOURCE OPTIMIZATION

More than a fleet with new vehicles, there is the exponential optimization of resources, namely: productivity, reliability of services provided, time on the road, ROI (Return On Investment) and better management of available vehicles.

CONCLUSION

As described above, several factors contribute to the depreciation of a fleet and its renewal. However, despite the associated costs, a renewed fleet represents a number of advantages and opportunities for the company.

BUT, you can opt for another solution that does not carry the mentioned factors. The Fleet Outsourcing / Contracting allows you to have new vehicles at no additional cost (to the contract), suitable for each type of use, with lower operating costs and greater energy efficiency.

What are you waiting for RENEWING your FLEET or hiring one?! 😉👍

USEFUL Links:

- “REDUCE your Fleet Maintenance COSTS!

- “Get to know 6 IMPORTANT Fleet Manager decisions.

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