New LCV generation enjoys 10% whole life cost boost

Wednesday, May 28, 2014 - 11:00
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IDEA: Should fleets be replacing more frequently?

Fleet operators should consider replacing existing vehicles earlier, GE Capital have insisted, after figures suggested new-generation LCVs are 10% cheaper to run than their predecessors.

According to GE Capital analysis, the latest vans are typically showing whole life cost savings of around 10% over a four-year cycle compared to the previous generation.

Simon Cook, Light Commercial Vehicles Leader at GE Capital Fleet Services, said that such an advance means that, in some cases, fleets should consider replacement earlier than planned.

“This new generation of vans is a revelation in terms of impact on the key cost drivers such as fuel consumption, reliability, maintenance costs and carbon footprint,” he said.

“Historically, when a new design appeared, the change in whole life costs compared to the previous model, showed a slight improvement but we are now seeing a genuine change for these vans.

“For example, some LCVs now have 30,000-mile service intervals, something that would have been unthinkable just a few years ago.

“Manufacturers have recently delivered some very impressive products.

“The picture will be different for each fleet and it is a question of sitting down and crunching the numbers.

“This is something that we have been proactively doing with a number of fleets with which we work.

“It means taking all key operational and funding factors into account and performing some fairly sophisticated calculations, but we believe that there are certainly scenarios where there are strong financial arguments for taking new vans earlier.”

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