Fleet replacement cycles to increase over next year
This year’s research, which is conducted by Arval to provide a neutral and international picture of changing fleet trends, surveyed 4,500 fleet operators in 15 countries to compare market developments and found that a number of businesses in the UK expect to keep their company vehicles for longer as a means of saving money.
The survey, which has been held since 2002, asked respondents if the amount of time they keep their vehicles will increase or decrease in the next 12 months. The result was that amongst businesses with 100 or more employees, more expected replacement cycles to increase than those that thought they would fall; a consistent picture with last year’s research.
Mike Waters, senior insight & consultancy manager at Arval, said: ‘There are arguments for and against increasing the replacement cycle of a vehicle. Throughout the economic downturn, it was common to keep vehicles for longer and these results demonstrate that this is still a relevant strategy for many businesses in 2014.’
The research found that that larger businesses expect that extending vehicle replacement cycles will save them money. When asked which factors influence how long they keep their company vehicles, cost was at the top of the list by some distance, cited by 48% of respondents. In comparison 9% said supplier recommendation, 4% said manufacturer pricing and 3% said staff retention.
Waters added: ‘Of course there are a range of factors to consider when setting replacement cycles for both cars and vans and any good leasing company will be able to work with you to provide advice and guidance on the various alternatives and what they mean for your business.’