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Laura Maxwell

Laura Maxwell

May 21, 2020

1 minute read

Fleet Management Blog

Estimate the Best Time to Replace Vehicles with Optimal Replacement Analysis

Stop running your vehicles into the ground. Make data-driven decisions about vehicle acquisition and replacement.

vehicle replacement formula

What’s your fleet vehicle replacement policy? For many, it can be driven by vehicle age or mileage intervals, increasing operating costs or when another vehicle bites the dust. Taking a more data-driven approach can help you forecast the right time to cycle a vehicle based on data, helping you maximize ROI.

Approach Vehicle Replacement Strategically

fleet vehicle lifecycle management

Our new Optimal Replacement Analysis tool gives you the ability to estimate the expected year of replacement for a vehicle based on utilization, operating costs, depreciation, salvage value and more. Easily input your assumptions of costs over the lifetime of an asset to determine when the optimal time to replace that vehicle would be based on the minimum cost of ownership. See how changes in estimated service costs, remarketing and utilization change the suggested replacement timeline.

You can also use the output of the Optimal Replacement Analysis to validate or adjust existing replacement policies or develop new replacement plans if they don't currently exist in your organization.

Apply Assumptions and Monitor Progress

fleet vehicle replacement formula and lifecycle management

Associate your replacement policy with each vehicle and see how it’s progressing towards useful life expectancy based on your projected replacement timeline. Fleetio gives you a simple way to visualize remaining useful life and quickly see when it’s expected to be replaced.

Access the Replacement Calculator

Fleetio is committed to helping you get the most from your vehicles and equipment. Look out for upcoming improvements that help you get a better view of where all your fleet vehicles stand at once in relation to their expected life.

Start a free trial today to see the Optimal Replacement Analysis tool and create, validate or adjust your replacement policies.

About the Author

Laura Maxwell
Laura Maxwell

Product Marketing Manager

Laura is a Product Marketing Manager at Fleetio and has 10+ years of experience marketing SaaS companies. Laura grew up on a dairy farm in Massachusetts with a home delivery fleet and her work gives her daily flashbacks to her childhood.

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