Fleet News

Replacement cycles are lengthening

NEW evidence that fleet replacement cycles are continuing to lengthen has emerged with publication of the Tolley Dial Survey of Company Car Schemes for 1996/97. The survey of 316 companies operating 56,622 vehicles reveals more than half the fleets who responded replace cars at 80,000 miles or more and over 44% retained vehicles for four years or more.

The report, written by Peter Cooke, director of the Centre for Automotive Management at Henley Management College, also finds a rise in the use of finance lease and open ended leasing, and that 49% of cars in the 100-249 fleet sector are financed using contract hire.

Direct dealing between fleets and manufacturers remains a key part of negotiations with 61% of fleets with 250-499 vehicles having had talks with manufacturers, but only 50% of those had resulted in direct arrangements. However, 72% of organisations with fleets of 500-plus have had discussions. The survey also finds that the majority of fleets surveyed consider the price of a vehicle when buying ahead of wholelife costs, residual values and perceived UK origin.

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