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Extended fleet cycles – what effect on SMR?

It seems like an obvious gain to defer replacing vehicles because it looks as though you are saving money when budgets are under pressure. However, the truth can be different
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Debbie Fox, epyx

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8 September 2020

EXTENDED fleet replacement cycles in the wake of coronavirus could be impacted from a service, maintenance and repair (SMR) angle.

Epyx, which provides the 1link Service Network SMR platform, said that the SMR profiles of many vehicles often involves considerable extra expense in years four and five.

Debbie Fox, Commercial Director said: “It seems like an obvious gain to defer replacing vehicles because it looks as though you are saving money when budgets are under pressure.

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“However, the truth can be different. If you examine the cost of SMR over time, it tends to rise quite quickly as the vehicle ages.”

According to industry SMR data this particularly occurred around the point of the first MOT at three years, which was also where the warranty ended for most major manufacturers.

Fox added: “There are several reasons for this and the picture does vary quite considerably when you look at different models and mileages, but you may find that you will have to buy a complete set of tyres or pass the point at which a major scheduled service is due.

“For some vehicles, there may even be relatively expensive one-off costs such as the replacement of a timing chain.”

It is potentially prudent to consider looking at extending replacement cycles but, if the object was simply to save money, then a new vehicle or lease could be cheaper.

Fox said: “Really, the important thing is to do the maths and work out which option results in the lower cost. If you lease vehicles, your leasing company should be able to help with this or, if you are a user of 1link Service Network, we will often be able to provide advice.”

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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