6 Signs You Should Replace A Business Vehicle
If you manage a fleet of vehicles for business, one of the essential things is to replace a business vehicle at the right time. If you keep vehicles for too long, you will lose money trying to keep them in operation. Then again, if you replace them too early, you will lose money getting something new when what you had was still useful.
It is, therefore, important to know when it is necessary to replace a vehicle on your fleet. Here are six things to look out for.
Excessive Fuel Consumption
If you notice that a vehicle is consuming more fuel than normal, it may be time to get a replacement. One of the reasons for excessive fuel consumption is when a vehicle has used up over 100000 miles already. Such vehicles are worn out and are no longer fuel-efficient. Finding a replacement will save you some money. You will notice that newer vehicles exhibit higher fuel efficiency than older ones.
The Total Cost of Ownership
When you do your math and realize that keeping a vehicle is costing you more than the initial purchase did, it is not worth it. There is fleet management software that can help you work out how costly maintaining your fleet vehicles is. With this information, you can decide as to whether a vehicle needs to stay or go.
When a car wears out, it tends to experience multiple breakdowns at frequent intervals. The repairs then become costly because of their frequency. In some instances, you may need to purchase a spare part that is really costly. Frequent repair and maintenance may help the vehicle keep going, but it will run you losses eventually. The best thing to do is take that vehicle off the fleet and get another.
Depending on your nature of business, the technology on your fleet may not be serving you efficiently. For instance, for delivery services an automated GPS navigation system would go a long way in ensuring the drivers deliver parcels faster, without much challenge.
Other helpful technological improvements are emergency braking systems and lane changing assist. For fleet managers, there are safety alerts, tire pressure monitoring tools, OEM backup cameras, and maintenance indicators to help keep tabs on what needs attention and how often to service a vehicle.
You may consider replacing the vehicles, or checking out what upgrades you can install into the existing fleet.
In some instances, you may already have scheduled to upgrade your fleet to ramp up your business. If you are diversifying the services you offer, you may also need to replace your vehicles so that they can match up to your new venture.
The Vehicle Is Old
For vehicles whose warranty is close to expiry. Replacing such vehicles will save you money because if you keep them, you will need to cover the cost of maintaining them once the warranty expires.
Fleet vehicles bear the image of your establishment. A rickety vehicle will most likely tarnish the name of your business. In some cases, a paint job can fix that. However, when the engine and other parts have constant issues, it will have a negative impact on the quality of services you offer and cost you some customers.
In line with fighting climate change, some local governments provide subsidies to enterprises that replace their vehicles with eco-friendly models. This is another element that may affect the replacement of a fleet. If you find that these offers are available in your area, there is no harm in replacing your fleet.
Some manufacturers also offer discounts for fleet replacement, so you may consider replacing your whole fleet at a friendly price.
Have a System
A vehicle substitution lifecycle strategy is the best choice for fleet managers. You can easily assess whether any vehicle on your fleet is ready for substitution using a workable system. If you implement such a scheme, you will not have trouble establishing whether it is time to replace a vehicle or not.
Fuel and repair costs for vehicles that stay on fleets beyond their life cycle are high. These vehicles also have a higher probability of crashing. With a replacement system, you will enjoy predictable resale prices and reduced repair and maintenance costs by replacing your fleet vehicles promptly. Additionally, you will know what to anticipate when it comes to maintenance costs, and you can get rid of old automobiles before they have breakdowns that will cost you.
Above all else, fleet vehicles ought to be in perfect condition to maintain the safety of the drivers and other road users. Vehicles with mechanical issues are more likely to cause accidents and endanger lives. As a rule of thumb, put safety first as you inspect your fleet- if a vehicle does not guarantee safety, take it off the fleet.