How to handle fleet vehicle life cycling
Learn how to handle fleet vehicle life cycling
- Understand the life cycling process
Life cycling refers to the process of replacing fleet vehicles before depreciation and maintenance start to cost more than acquiring new vehicles. Having a consistent vehicle life cycling strategy in place saves money in the long run.
- Understand the connection between life cycling and operating costs
When the optimal point to remove vehicles from your fleet has passed, maintenance costs will begin to rise due to the age and mileage of the vehicle. Combined with accelerating depreciation, this will lead to overall higher costs than if you were to cycle out the vehicles for newer ones.
- Find balance between depreciation and market value
The optimal cycling point occurs when the vehicle's maintenance costs are still low and the depreciated value is equal to the market value of the vehicle.
- Work with a fleet specialist who can optimize the life cycling process for you
At Ewald, our fleet management specialists are experts in the life cycling process. Speak with a specialist to develop a life cycling strategy for your business.