Cars have a life cycle that determines their value, whether one decides to keep or sell them through an auction. Understanding the life cycle of vehicles let businesses, governments and individuals get good value for every purchase.

1. The Life
Cycle of
Government
Fleet
Vehicles
PICKLES AUCTION
Address: 54 Kingsgrove Road,
Belmore NSW 2192
Phone number: (02) 9704 6669
E-mail: marketing@pickles.com.au

2. Cars have a life cycle that determines their value, whether one decides to
keep or sell them through an auction. Understanding the life cycle of
vehicles let businesses, governments and individuals get good value for
every purchase.
Understanding Life Cycles and their Effects on
Businesses
The key to a successful life cycle management is
to replace a car at the best possible time.
Knowing the answer to the question ‘when to
retire or replace a car’ is important to
maximising profits and reducing expenses.
A company that values money and time, because these result in loss of
customers or sales, need to adhere to a four-year or less and 60,000 miles
or less replacement policy. These companies require production on their
employees who use the fleet vehicles. Interruptions, however minor, affect
the bottom line. The company’s image is important; they need vehicles that
are relatively new and working at maximum capacity.
For companies that place an importance
on downtime with adjustable production
schedules, fleet vehicles have a longer
useful life. For companies with these
characteristics, a replacement policy of 4-
8 years and with mileage within 60,000-
100,000 miles is the best option. These
types of businesses make sure to get full
value from the cars they use. They also
retire these vehicles before substantial
expenses because of repairs or damage or
downtime takes place.
There are organisations that maximise the useful life of fleet vehicles they
acquire. These companies have a replacement policy of eight years or more
with a mileage of 100,000 miles or more. These businesses tolerate long
downtimes because of a large inventory. These often use fleet vehicles from
the showroom until they are no longer of any use.

3. Acquisition
Acquiring government fleet vehicles come with risks and benefits.
Depending on where you purchase them, these vehicles may have
maximised their useful life because of their high mileage and years used.
There are auctions that showcase government fleet vehicles for interested
customers. Be sure to check each car before making a purchase to identify
potential and current problems of the vehicle and get the best value.
Sources:
http://www.pickles.com.au/cars
http://www.government-fleet.com/article/story/2007/05/lifecycle-
management-strategies-art-or-science.aspx
http://budgeting.thenest.com/risks-buying-fleet-cars-29552.html