The Importance of Commercial Fleet Disposal

An integral part of fleet management is the planned disposal of vehicles that have reached the end of their service life. Why does fleet disposal planning matter?

Understanding the Fleet Disposal Lifecycle
When a vehicle reaches the end of its contractual or operational life, it becomes necessary to remove it from the fleet. This is where a robust disposal policy comes into play. It serves as a guide to this process and ensures a consistent approach to vehicle disposal within an organisation.

The Role of Disposal Policy

A well-structured disposal policy can provide several benefits to an organisation:

• It ensures consistency in approach towards vehicle disposal.
• It helps in maintaining updated records post-disposal.
• It supports effective communication within departments.

Timing of Disposal Arrangements

Disposal arrangements should be considered several months in advance. This allows organisations to plan for replacements and avoid costly lease extensions. If new vehicles are not ordered in time, extending the lease becomes inevitable, thereby increasing operating costs.

Disposal Methods

When it comes to vehicle disposal, several methods can be considered. For leased vehicles, they are returned to their leasing company at the end of the contractual life. In the case where the organisation owns the vehicle, disposal options include sale to other organisations or through an auction.

Vehicle Auctions

Vehicle auctions are a popular disposal method. They provide a fair price for the vehicle and save time on advertising, storing vehicles, hosting open days and managing bids. Additionally, certain parts and equipment from the vehicle can be removed and used elsewhere, further optimising the disposal process.

Planning for Fleet Vehicle Disposal and Replacement

As the backbone of many businesses, the longevity and reliability of fleet vehicles are of paramount importance. When it’s time to replace them, a standardised disposal solution is needed.

1. Policy Implementation
   The first step towards a disposal plan is to have a policy in place for submitting requests. It is essential to communicate the policy details and procedures effectively to the operators.
2. Approval Process
   Upon receiving a vehicle disposal request, a swift approval process is required to avoid downtime and additional vehicular issues. The approval process should be standardised and well-documented to ensure everyone involved is kept informed.
3. Tracking Fleet Utilisation and Maintenance
   Understanding a fleet vehicle’s utilisation is crucial before considering its replacement. Fleet management software can track assets and usage, providing visibility that aids decision-making.
4. Fleet Maintenance Software
   Tracking maintenance history can provide valuable insight when determining if a fleet vehicle is worthy of replacement. Our fleet maintenance software can automatically calculate the total cost of ownership for each vehicle, thus supporting financially prudent decision-making.
5. Deciding on Selling Options
   A range of options are available for selling fleet vehicles. From selling to individuals and local dealers to auction houses, the choice depends on whether receiving funds quickly or retaining as much return as possible is more important.

Managing Vehicle Procurement and Disposal

Vehicle procurement and disposal are critical aspects of fleet operations that demand careful planning, analysis, and execution. They involve decisions that affect the performance, cost, and sustainability of your fleet.

• Assessing Fleet Needs
  Before procuring or disposing of any vehicles, it’s necessary to assess your fleet needs and objectives. Factors to consider include budget, operational requirements, fleet size, utilisation, maintenance, fuel efficiency, safety, and environmental impact.
• Choosing the Right Vehicles
  Once the needs are identified, the search for the right vehicles can begin. New or used vehicles can be bought, leased, or rented depending on the financial situation and flexibility of the organisation.
• Negotiating the Best Deals
  When procuring or disposing of vehicles, it’s important to negotiate the best deals possible. Market research, industry benchmarks, and fleet data can be used to support negotiations and leverage bargaining power.
• Logistics Management
  After the deals are secured, the logistics of delivering or collecting the vehicles need to be managed. This involves coordination with vendors and buyers, arranging transportation and storage, and handling paperwork and documentation.

Monitoring the Results

Finally, the results of procurement and disposal activities should be monitored, and their impact on fleet operations evaluated. This involves tracking the performance, cost, and sustainability of vehicles and comparing them with set goals and benchmarks. Regular reviews of policies and procedures are also necessary for continuous improvement.

A well-structured fleet disposal plan is necessary for consistent, efficient, and cost-effective fleet management. Kishugu Fleet Solutions offers robust solutions for commercial fleet disposal, underlining why fleet disposal planning matters.

Kishugu Fleet Solutions offers comprehensive fleet lifecycle solutions, including analysis & solution planning, procurement & replacement of vehicles, vehicle lease agreement options, fleet management, vehicle disposal, and value-adds.

We currently manage more than 500 vehicles across a range of industries, helping clients attain a cost-effective and safe way to manage their vehicle fleets.
Contact us today and experience the FleetForward Advantage.