'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.