2017 - 2019 Fleet Services Vehicle Replacement Policy
Vehicle Class
Years in
Service
Mileage
Sedans
10
100,000
Trucks
10
125,000
Vans
10
125,000
Sport Utilities
10
125,000
The replacement policy is a guide and intended to be used for budgetary and strategic
planning purposes. Many factors will affect the timing a vehicle is replaced for
example economic restrictions may require the division retain vehicles longer than
anticipated or high operating cost existing vehicles may accelerate the replacement of
a vehicle.
The following is a decision tree utilized by the division to determine when a vehicle
is replaced and what type of vehicle is purchased as the replacement vehicle:
Age
Condition
Vehicle obsolescence
Mileage
Historical Satisfaction
Economic value
Review utilization
Review customer needs
Review type of vehicle requested
Acquisition cost
Fuel economy
Reliability rating
Warranty
Asset allocation strategy
Availability of the asset
Depreciation expense
Image
Employee satisfaction
Employee productivity
Resale Value
Green score
Anticipated life cycle cost
Manufacture’s support
Dealer network
Dealer’s support
Safety Ratings
Anticipated life cycle cost
Manufacture’s support
Dealer network
Dealer’s support
Safety Ratings
“What value does the asset bring the value is not in the vehicle it is in what the vehicle does”
or what task it performs
