Extending vehicle replacement cycles has become a trend in the economic downturn, but in many cases it could prove to be a false economy, according to Jaama.

As the age of a vehicle increases so do maintenance costs, particularly as company cars and vans emerge out of comprehensive manufacturer warranty cover.

Therefore, it makes economic sense to ensure that service, maintenance and repair (SMR) costs are not rocketing out of control and overtaking a used vehicle’s residual value as company cars and vans move into their fourth and perhaps fifth year of operation when three years was often the pre-recession norm.

To ensure that fleet decision-makers using Jaama’s multi-award winning online Key 2 Vehicle Management system can see at a glance whether SMR costs outweigh depreciation, a simple ‘red’ and ‘green’ forecasting graphic has been developed.

Key2 Vehicle Management does not only store data, but actively manages, monitors and analyses it automatically, with automated tolerance checks and notifications being carried out by the system.

Jaama managing director Jason Francis said: “Key2 tracks individual vehicle maintenance costs against budgets so fleet managers can see how they have added up over the lifecycle of the vehicle and then extrapolates what spending patterns will be over the coming months.

“Fleet managers can graphically view exactly where vehicle costs move from a normal curve up to a spike via the ‘red’ and ‘green’ graphics and then identify the optimum age of the car or van when it should be defleeted.”

Mr Francis added: “Fleet managers must also bear in mind that some company car and van drivers are more likely to take extra care looking after a new vehicle than an older vehicle, which can also mean operating costs rise at a faster rate than previously.”

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