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UK fleets replace vehicles earlier than European average, Arval finds

Date: 21 August 2018   |   Author: Sean Keywood

UK fleet vehicles are replaced on average nearly two years before those in Europe.

That's according to research by leasing company Arval, which found that the average time before UK vehicle replacement is 3.9 years, compared with 5.7 years across 12 other European countries. 

The research also found differences between differently sized UK fleets: small fleets of fewer than ten vehicles have an average replacement cycle of 3.9 years; medium fleets of between ten and 49 vehicles have a 3.6 year cycle; and larger fleets of 50 or more vehicles wait 4.2 years.

In Europe, the respective figures are 6.2 years for small fleets, 5.4 years for medium fleets and 4.8 years for larger ones.

Shaun Sadlier, head of Arval's Corporate Vehicle Observatory in the UK, said: "In a lot of ways, fleet best practice in the UK and Europe is quite closely aligned, but there is a clear difference when it comes to replacement cycles.

"The main advantage of longer cycles, as seen elsewhere in Europe, is that the lease rentals are slightly cheaper, although not by too much, because older cars tend to need more maintenance and repair work, and because of the shape of depreciation curves."

Sadlier added that UK fleets felt newer vehicles were worth the small additional amount in monthly rentals because of the advantages that they brought.

"If you have a newer fleet, you have a more reliable fleet and one that is bringing you the latest technological advantages in terms of fuel economy, emissions and safety devices," he said.

"More modern vehicles can also have a positive impact on the perception of your company. Our view is that this is very much worth the extra few pounds you'll pay each month. 

"Of course, there is also an employee benefit angle. Newer cars are generally perceived to be more motivational to staff, and the four-year cycle that we generally use in the UK is also prompted by human resources concerns around the recruitment and retention of talent. 

"It is interesting to note that, if you look at the European figures, larger fleets are quite a lot closer to UK practice at 4.8 year cycles, and their corporate thinking is probably more in line with how we view fleet best practice."

 



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