Fleet News

'Abandon traditional disposal cycles' call

FLEET managers must consider abandoning 'traditional' replacement cycles and instead allow demand in the used car market to dictate when cars should be de-fleeted. A radical shift away from the traditional three-year/60,000-mile benchmark to sub-one-year replacement cycles could also pay huge dividends, according to vehicle remarketing specialist T2 Logistics.

The firm used to manage the supply and disposal operation for NatWest's fast-cycle fleet for much of the 90s, disposing of up to 20,000 vehicles a year. Malcolm Moore, general manager of T2, said the benefits of a fast-cycle policy far outweigh the pitfalls, in some cases virtually eliminating maintenance and warranty costs, and massively reducing tyre expenditure. Detailed running cost analysis by T2 of one 320-strong fleet showed it could slash its wholelife costs by switching from a four-year/90,000 replacement cycle to a nine-month holding period, and the company has now moved to a fast cycle policy.

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