Vehicle & Equipment Replacement Budgeting

How are you currently forecasting and budgeting for fleet and equipment replacements? Fleet management software should make budgeting easier, quicker, and allow you to do “what if” scenarios for specific situations.

General Information

In Collective Data’s fleet management system, you can set up some of the basic information that will be used for budgeting such as:

  • Capital Costs
  • Life Cycle (Years)
  • Salvage Amount $
  • Monthly Depreciation
  • Estimated Replacement Date
  • Yearly Inflation Rate

The capital costs are all purchase costs plus any upfitting costs that enhance the vehicle value. The important pieces for replacement budgeting would be the life cycle, the salvage ($ or %), and the yearly inflation rate. Based on each organization’s forecast expectations, you can modify this expected inflation rate on each and every vehicle if needed, or in groups that you define.

Reporting

Using all of this data for all your vehicles, the system can give you a lot valuable information for easy budgeting and forecasting.

Through an Equipment Replacements and Escrow report, you can get an overview of all of your equipment and replacement information as seen below:

Equipment Replacement Report

 

Any report within the Collective Data fleet management system can be filtered, grouped, or charted to break it down even further. Here are a few examples of the same report easily changed with a few button clicks:

Broken down by Department:

by department

Broken Down by Make and Model:

by model

Charted by Equipment Type:

budgets

“What if?” Fleet Replacement Scenarios

The above examples just show what you actually have forecasted so far and planned for. Our fleet and asset management software also give the users the ability to see “what if” and play around with different inflation rates and change expected life cycles to estimate out budgets and see how their costs can change with a more accurate guess.

Some things that affect this are the type of vehicle. Obviously the heavy-duty vehicles are going to cost more to replace than compact cars. But, some organizations have found the opposite to be true however. In city or government situations it has been found that meter readers possibly use their vehicles the most and cities had to replace those vehicles much more frequently.

This means the rate or purchasing budget could also be adjusted based on the department, which not many organizations think about for vehicle usage.

Since there are so many factors that weight into this, we give a report that you can filter, sort, group, and we give you a value. You can enter the percent increase value, re-run the report and see what the budget turns out to be. You can work with this for a while until you arrive on concrete numbers before actually affecting the data. Once you have the values you like, you can go back to the vehicle records and update them accordingly.

Below is the report called Equipment Replacement Forecast:

replacement forecast

In the example shown, we’ve selected 2% to see what this does to our replacement costs and annual escrow. We could again filter, sort, group, or chart our results in different ways for different criteria if needed. The forecasting report allows us to work with different variables without affecting live data, but then we can go back to edit the live data very easily based on our conclusions.

This is a quick look at how you can easily forecast vehicle and equipment replacements within the system. This feature is standard in our latest edition, collectiveFleet6, as well as an enhancement option for earlier versions.