Replacement cycles row erupts

CONTROVERSY is raging as to whether fleets should reduce replacement cycles in a bid to boost residual values.

The war of words started when Fleet NewsNet columnist Martin Ward, CAP Motor Research's national research manager, suggested fleets should move to replacing vehicles at two years/40,000 miles to create a wealth of attractive used cars for buyers.

He subsequently claimed leasing companies backed the idea but warned that convincing fleets 'may not be easy'. But vehicle marketing specialist T2 Logisitics says it has saved companies substantial amounts of cash by reducing replacement cycles.

Although fleet managers are taking a look at different replacement cycles most admit it comes down to individual models and wholelife costs. Fleets said the traditional cycle was more cost effective, with costs being lower the longer a vehicle is kept on fleet.