Latest figures on new vehicle registrations are down, which has prompted questions around the demand for ‘new’ vehicles not just for private owners but for fleets as well.
Fleets have always been a huge driving force behind new vehicle purchases but a combination of factors is now being blamed for the 6th consecutive month of falling new vehicle registrations.
With figures falling by 11.5% and the general trend being downwards, the questions is what it means for fleets.
Some experts are pointing to consumer confidence declining while others have pointed out that fleet replacement cycles might simply be getting longer.
Are Fleet Replacement Cycles Extending?
With fleets considering the right time to make the switch to electric and the ‘nearly new’ and used vehicle market gaining strength, some fleets are pushing their replacement cycles to four years where it was three or five where it was four.
Of course, vehicle wear and tear, mileage and breakdowns all play a part in that but there is a belief that it is having a noticeable impact on new vehicle sales and registrations.
There is also the fact that the cost of replacing vehicles frequently has risen at a time where so many other costs have risen, meaning that many fleet owners are left with a decision to make.
Add in the fact that many fleets are postponing their plans to go electric due to rising costs and it’s clear that is having an impact on the market.
You can read the full story on the latest new vehicle registrations here.
The Road Safety Impact
Routine maintenance is a crucial part of vehicle and road safety but with a costs rising, that’s also having an impact on fleets and their replacement cycles.
If vehicles are being driven for longer, with more miles on the clock, there is a higher likelihood that repairs are needed at some point, with maintenance becoming crucial.
But as we all know, road safety doesn’t start and end with your driver and your fleet, it’s about the wider issues as well.
In fact, a news story recently pointed out that there are millions of vehicles on the road despite manufacturers issuing safety recalls.
When a safety recall is issued, manufacturers and dealerships reach out to vehicle owners to inform them that the vehicle needs to be recalled to fix particular issues in order to ensure it’s safe to be on the roads.
That, coupled with infrastructure issues such as smart motorways and a lack of cameras or physical police present on many major routes has a big impact on road safety, campaigners say.
Pressure is also being put on the government to address those issues, with smart motorways being put on hold as £900m is invested in improving safety measures on motorways.
Where are you in your vehicle replacement cycle? Have you extended it in recent years? Have you gone electric yet? Have rising costs affected your vehicle replacement cycle? Let us know…
