UK fleets have much shorter replacement cycles compared to the European average, according to new research from global vehicle leasing giant Arval.
The average replacement cycle for a car in the UK is 3.9 years but the average for a basket of 12 other European countries is 5.7, with a variance from more than six years for small businesses to five years for companies with more than 250 employees.
The finding comes from the 2018 edition of Arval’s Corporate Vehicle Observatory Barometer, which is based on research into 3,718 fleets.
Shaun Sadlier, head of Arval Corporate Vehicle Observatory in the UK, said: “In a lot of ways, fleet best practice in the UK and Europe is quite closely aligned, but there is a clear difference when it comes to replacement cycles.
“The main advantage of longer cycles, as seen elsewhere in Europe, is that lease rentals are slightly cheaper, although not by too much, because older cars tend to need more maintenance and repair work.
“If you have a newer fleet, you have a more reliable fleet and one that is bringing you the latest technological advantages in terms of fuel economy, emissions and safety devices.
“More modern vehicles can also have a positive impact on the perception of your company. Our view is that this is very much worth the extra few pounds you’ll pay each month.”
The research showed that among the ‘top five’ EU economies of France, Italy, Germany, Spain and the UK, replacement cycles were much more closely aligned among larger fleets operating 50 vehicles or more, with the main differences occurring among smaller fleets.
Large fleets in the UK keep vehicles on average for 4.2 years, compared to 3.8 in France and Germany, 3.9 in Spain and 4.3 in Italy.
When it comes to smaller fleets, the UK tends to have the shortest replacement cycles.
Switzerland has the longest replacement cycles overall, averaging 7.5 years.
Arval is owned by BNP Paribas and covers 28 countries with a leased fleet of more than 1 million vehicles globally. It is also a member of the Element-Arval Global Alliance, the longest standing strategic alliance in the fleet management industry, with manages 3 million vehicles in nearly 50 countries.
Source: Arval
