Vehicle Short Cycling

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Written By: Eric Goldfisher, Content Manager

Vehicle short cycling has become a popular way to do business recent years. Merchants Fleet offers leasing plans that facilitate the more frequent replacement of fleet vehicles – potentially saving your company considerable sums of money. For a long time, companies with fleets of vehicles have determined that the most cost-efficient time to replace a vehicle is within its third year in service. Recently, experts are advocating the advantages of replacing vehicles more frequently, or short cycling them. Find out if this leasing agreement is right for you.

What is Vehicle Short Cycling?

In basic terms, vehicle short cycling is the act of consistently replacing the vehicles in your fleet with new ones. This policy is based on the analysis of fixed and variable costs, such as vehicle depreciation, fuel expenses, and maintenance/repair costs. Fleet replacement habits typically depend upon a combination of mileage levels and time elapsed. The second a vehicle leaves the lot, its value depreciates significantly. From that point, depreciation levels off, occurring slowly but steadily over time.

Depreciation is the largest fleet expense a company must deal with. During a replacement cycle analysis, depreciation is the main expense a company examines. The calculation will also include fleet maintenance and repair costs, which will increase during the lifecycle of the vehicle. Merchants Fleet Management can help you analyze and calculate your company’s unique replacement cycle to optimize your fleet management and cost efficiency. Once you know your ideal replacement cycle, you can learn if vehicle short cycling is right for you.

When a company short cycles its fleet vehicles, it replaces them in a cycle as short as one year – bringing in newer vehicles to replace those that have been in service. Faster vehicle replacement can translate into reduced maintenance costs, happier employees, and greater peace of mind. Merchants Fleet Management offers vehicle short cycling leases as part of our comprehensive list of lease options. See our full list of programs. Our experts can help you select the ideal lease for your needs.

Discover the Benefits of Vehicle Short Cycling with the Experts

Merchants Fleet is replete with experts in the fleet management industry. Across our company, the brightest minds work together to come up with programs that set the standards for the rest of the industry. Meet our leaders. We are more than just a management provider – we’re your partners in fleet organization and cost control. Our team members can help you understand what vehicle short cycling is, and how it may cut costs in your company. We can then set up a customized leasing plan specifically for your needs. Here is a sample of the benefits short cycling may bring to your organization:

  • Reduced company operating costs. When you replace vehicles on a shorter cycle, you remain within the limits of the original warranty. Thus, you can save on maintenance and repair costs.
  • Greater vehicle resale value. Short cycling your fleet brings a constant stream of newer vehicles, in better shape, and with lower mileage. This means a better vehicle resale value when it’s time to cycle the fleet.
  • Maximized model-year buys. You may be able to negotiate a larger competitive assistance payment (CAP) with a bigger model-year buy during short cycling. CAP incentives may increase with larger vehicle purchases.
  • Increased driver morale. Newer vehicles can make employees feel more comfortable and better looked after by your company. Vehicle short cycling can help you attract new talent and retain your current employees.

Whether short cycling will truly benefit your company depends on your size, financial objectives, and fleet requirements. View our other leasing programs. However, it is a plan you should consider if your current replacement cycle doesn’t seem to be working in your favor. The knowledgeable team at Merchants Fleet Management can examine your specific company and give you our professional opinion about whether vehicle short cycling will improve your bottom line.

Why Sign Up for Vehicle Short Cycling?

Once you decide that vehicle short cycling is right for your company or government agency, your next question should be which service provider to choose. Merchants Fleet has more than 50 years of experience and enjoys a long history with many satisfied customers. We set the standards for the fleet leasing, management, and maintenance program industries. Whether you want short-term leases or a customized leasing plan tailored exactly to your business, we can provide it – on time and on budget. Get to know our company. Here’s why people choose Merchants Fleet over the competition:

  • We put you in the driver’s seat. When we say we tailor our programs to our customers, we mean it. We work one-on-one with each customer to gain an in-depth understanding of the company’s size, budget, and goals for its leasing, and fleet management programs. Then, our team comes up with personalized solutions made specifically with you in mind.
  • We offer an incredibly wide variety of programs. While other companies try to pigeonhole your needs into one of their generic programs, Merchants Fleet has enough program options to satisfy specific customer needs. We have open-end and closed-end leases. No matter what your fleet goals are, we have the services to help you succeed.

The fleet management company you choose for vehicle short cycling can make or break your company’s overall success. Put your financial security, leasing solutions, and future in the hands of a provider you can trust.

Get Started with Vehicle Short Cycling Today

If you’re ready to jump on board with replacing your fleet vehicles on a shorter cycle, Merchants Fleet can help you right away. We’ll help you customize your leasing solution, so you can rest assured you aren’t paying for services you don’t want. To get started on the transition to vehicle short cycling, contact us online or dial 866.653.2737.

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