Vehicle replacement planning
When to buy a new car for your company
Timing is everything. Putting employees in cars that are right for them and their job is just the start of managing a vehicle fleet. You also need to maximise value while minimising costs. Capital costs fall and operating costs increase as vehicles age. So, there comes a time where keeping a vehicle is no longer cost-effective.
Vehicle capital costsVehicle capital costs are the monthly market value depreciation or decrease in secondary market value attributed to vehicle age and mileage.
Vehicle operating costsVehicle operating costs are all those costs incurred in keeping the car on the road – like fuel, tyres, registration, insurance, maintenance, out-of-warranty repairs and temporary rentals.
Vehicle replacement schedule
Optimum replacement timing will vary across vehicle models, and depend on fleet policy, funding costs, accident occurrences and other variables, known as 'soft factors'.
Identifying that sweet spot in the whole-of-life cycle of your vehicles, when it is the optimal time to replace those vehicles, is key.
We’ve shared some optimal replacement times for fleet vehicles, drawn from LeasePlan’s many years of experience in fleet management and replacement on our blog.
