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Analysis of Fleet Replacement Lifecycle

Analysis of Fleet Replacement Lifecycle Project #12-14 Prepared by Office of the Inspector General J. Timothy Beirnes, CPA, Inspector General Office of Inspector General Page i Analysis of Fleet Replacement Lifecycle TABLE OF CONTENTS BACKGROUND .. 1 OBJECTIVE, SCOPE, AND METHODOLOGY .. 2 EXECUTIVE SUMMARY .. 2 TRENDS IN VEHICLE USEFUL LIFE .. 4 Replacement CYCLE METHODS .. 6 Replace at Established Intervals .. 6 Replace When Repairing Exceeds Value .. 6 Lifecycle Costing .. 7 Depreciation .. 8 Cost of Money .. 10 Insurance .. 11 Fuel .. 11 Maintenance and Repairs .. 12 Other Replacement Considerations .. 13 Obsolescence Costs .. 13 Downtime Costs .. 13 Market Conditions.

Feb 18, 2005 · evaluate the impact of changes in assumptions. The optimal replacement time is rarely a ... dollars for their transportation needs. However, as shown in Table 1, the trend for keeping vehicles on the road longer was well ... analysis can be used to develop guidelines by vehicle class based on age or mileage

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