31acementcycleequationisn'tjustimportantbecauseofinternalconsiderations,asexternalfactorsarealsohavinganimpact,particularlywhenitcomestoacquiringcars.Fleetsreportthatmanufacturerleadtimesaregettingsolongthattheyneedflexibilitytopostponeorshortenreplacementcyclestorespondtoanyproductionissuesfacingmanufacturers.Butwhilemostfleetsseemsettoretainextendedreplacementcycles,somearelookingtoshiftpolicyback.Twokeyfactorsareinfluencingthisreversal-driverpowerandcostconcerns.Theinfluenceofdriversoverreplacementcyclestendstovaryaccordingtowhichindustrysectorafleetisoperatingin.AccordingtotheFleet200MarketDynamicsReport,adetailedanalysisofBritain'slargestfleetsbySewellsResearch&Insight,drivershavemostinfluenceonfleetpolicyinperk-carheavysectors,suchasbanking,accountancyandIT.Insomecases,HRdepartmentsarestartingtogaintractionfortheearlierreplacementofcarsasatooltoaidtherecruitmentandretentionofkeystaff.Thesecondkeyfactor-costconcerns-relatestoaccessingrunningcostsavingsobtainedbyshiftingtomoreefficienttechnology,acalculationthatmustbebalancedagainsttheadditionalinvestmentrequiredforanewvehicle.Forexample,withrapidlyimprovingengineanddrivetraintechnology,CO2emissionsarebeingdrivendownyear-on-yearandmpgperformanceisgettingbetter.?Cheaperrentals/lowerexpenditureonreplacements.Leasingsavingscanbeworthseveralhundredpoundsayearpercar.?Image-customersmightnotappreciatewhat'sperceivedtobeaprofligateapproachtobuyingnewcarsatatimeofausterity.?RiskofhigherSMRbillsifcarsarenotlookedafter.?Lowerresidualvalues.?De-motivatedstaff.?Slowertoexploitadvancesinsafetytechnology/fuelefficiency.?CostofMOTinfourthyear.?Carmightfalloutofmanufacturerwarrantyinfourthyear.TheprosTheconsExtendingreplacementcycles

32Fleet200profilesBritain'sbiggestfleetsAuniquereportintothemostpowerfulfleetsinBritainhasrevealedhowthedriveforefficiencyischangingtheirpurchasingplansandreducingrunningcosts.ThereportisbasedontheFleet200,auniquegroupofthe20largestfleetsineachof10keyindustrycategories.Theycreateacommunitywhichcontrolsmorethan£3billioninannualspendingand484,037carsandvans.TheFleet200companiesalsooperatemorethan50,000trucks.Thismulti-billionpoundforceinfleetisresponsibleforaroundone-fifthofthecompanycarsandvansontheroadandthekeytrendsidentifiedamongthelargestfleetsarelikelytobereflectedelsewherewithintheirsectors.DetailedresearchcarriedoutoverthepastfewmonthsbyreportauthorSewellsResearch&Insighthasidentifiedacleartrendtowardsreducedspending.ThetotalannualspendoftheFleet200companieshasbeenreducedbyabout£300million,reflectingreducedoverallbudgets,lowerspendingpervehicleandreducedannualmileage.Thedrophasbeendriveninpartbylowervehiclenumbers,eitherbecausecompaniesarereducingthenumberofpeopleeligibleforacompanyvehicleorbecausethey