Deputy director of Inland Revenue commercial services Stan Ayling believes the scheme will save taxpayers' money and could change the way the public sector buys its cars, but the scheme contradicts current major fleet manufacturing thinking on replacement cycles.
Despite Ford and Vauxhall's stated policies of restricting the number of 'fast-churn' deals with fleets, they are the only manufacturers currently supplying cars to the pilot project. A total of 130 end of term cars have been replaced with Fords or Vauxhalls in a 'key for key' changeover at British Car Auctions' Nottingham branch. The defleeted vehicles were refurbished and sold via BCA - like the new vehicles, when they are replaced with a new crop of short term cars at the end of the pilot project next January.
Inland Revenue currently operates a three-year petrol/four-year diesel replacement policy on a fleet dominated by Vauxhall cars. The object of the exercise is to evaluate the savings yielded by a wholesale move to shorter replacement cycles which maximises manufacturer discounts and minimises servicing and maintenance costs but involves higher residual value risks.