Replacing Costly, Outdated Vehicle Replacement Strategies with a Customized Approach

Traditionally held beliefs in any industry are difficult to overcome, and strategies about vehicle lifecycle planning are no different. But in today's ever changing vehicle marketplace, outdated replacement analyses need to be updated more often than in the past. With new automotive choices, changing manufacturer incentives, and the impact of macro-economics on vehicle resale, lifecycle costing can be far more complicated than before.

Crossmark, a professional services company focused on consumer goods manufacturers and retailers, considered all of that. With a new progressive, customized vehicle replacement plan, the Plano, Texas-based employer now achieves significant cost savings and manages the optimal vehicle selection, with innovative tools that calculate and compare lifecycle factors, in an easy-to-use, streamlined, web-based application.

The Challenge:
One-Size-Fits-All Lifecycle Strategies are Ineffective

Commercial fleet replacement strategies often rely on a standard, one-size-fits-all vehicle replacement plan. Although the planned replacement policy may be sound initially, it becomes outdated as new models are available, incentives change, and the resale market shifts over time. Beyond that, Hybrid vehicles and CO2 emissions continue to pose new questions.

As a result, today’s vehicle lifecycling calls for a comprehensive approach, say experts at Donlen Corporation, North America’s fastest growing fleet management company.

Donlen challenges the now-old-school philosophy that earmarked the 3-year/60,000 mile, or 3-year/75,000 mile mark, as ideal for resale.

New analytics, developed by Donlen in 2004, enable fleet clients like Crossmark to evaluate all costs, decrease net depreciation, and ultimately lead to the optimal replacement strategy customized for each vehicle in a company’s fleet.

The Solution:
Progressive Lifecycle Planning is Customized