The last stage of the fleet management lifecycle is vehicle disposal. This process is where an organisation removes from its fleet those vehicles that have come to the end of their contractual or operational life.
The disposal policy provides a framework to guide this process. It is important that you consider disposal arrangements several months in advance to ensure disposal and replacement arrangements are possible in the given timescale. If new vehicles are not ordered in time, the organisation may need to extend its lease which inevitably increases operating costs.
Where the organisation owns the vehicle, there are several disposal methods that need to be considered.
Finally, good communication between departments is essential to ensure all relevant details about the disposal of the vehicle are captured within the various administration systems.
What are the benefits of developing a robust disposal policy?
Developing a disposal policy can ensure your organisation takes a consistent approach to disposing of vehicles. It is important that staff understand and adhere to the policy and that it is readily available.
The policy should also ensure that following the disposal of a vehicle, updated information is included in the asset register, fleet database, maintenance records and fuel card details.
What methods of disposal are available?
If a vehicle is leased it will be returned to the leasing company at the end of its contractual life. If the organisation owns the vehicle, options for disposal include sale to neighbouring organisations or at auction. Auctions are used by several organisations and this method provides an opportunity to gain a fair price and save time on advertising, storing vehicles, hosting open days and managing bids.
It may also be possible to remove parts and equipment from the vehicle which can be used elsewhere (eg. winches, roof racks or internal racking).
Should you consider extending a vehicle’s life?
If a vehicle coming towards its anticipated disposal date is in good condition, you should consider retaining the vehicle, extending the lease or extending its life through a transfer to less demanding work.
See Fleet Strategy
See Procurement Strategy and our Funding and Leasing section
See Maintenance Strategy
See Strategy for Running your Fleet and Running Costs Calculator
See Disposal Strategy and Auctions and Disposals in our Remarketing Section
Source: Welsh Audit Office