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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.

Feb 18, 2005 · evaluate the impact of changes in assumptions. The optimal replacement time is rarely a precise moment, but more closely resembles a window. The two costs that change the most over a vehicle’s life are depreciation and repairs. Depreciation cost is very high over the early years of a vehicle’s life, losing

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