Fleet replacement cycles are now just a waiting game

When you put that into the picture alongside the uncertainty over the ZEV mandate and any future regulation, it becomes harder to make confident long-term decisions.

What we see most if businesses prioritising technology evolution beyond just cost.

Uptime is critical to keep businesses well balanced; VOR is not just an operational metric for fleet decisionmakers, it is discussed at the board level.

The costs of vehicles sitting off the road often outweigh any savings made on acquisition.

From this, there is a greater focus on reliability, parts availability and aftersales networks.

It is not just about the vehicle anymore, it is about how quickly it can be repaired and how strong the service network behind the brand is. That is making a huge impact on decisions.

While newer entrants have got people’s attention, fleets are still weighing up their confidence in infrastructure and residual values, which can impact monthly costs if on contract hire.

At the same time as all of this, fleets are taking a more holistic approach to how they view their operations.

There is a key focus on utilisation, right-sizing and challenging whether existing fleet setups are still appropriate rather than defaulting to their norm.

I touched on residual value risks, and if anything, that is the most prevalent point to this, especially in the EV space and with new entrants to the market.

Fleets are highly conscious of how today’s decision will impact future operations.

While we see value as being part of the conversation as ever, real priorities now sit with resilience, reliability and confidence.

Confidence in product, reliability of the vehicle and resilience of the aftersales network.

In a market where economic and technology changes are driving factors, fleet decisionmakers are spending more time to make the right decision.

Phil Wilbraham is managing director of Driveway Vehicle Solutions