Sourcewell

It’s a simple premise: To achieve the lowest TCO for your fleet, vehicles should be cycled, or replaced, before they begin to experience high dollar repairs and while they still have significant resale value. This is known as Optimum Replacement Timing and is easily targeted by capturing the maintenance expenses incurred over time and collecting the resale value of vehicles sold through auctions. Once this cycle point is determined (by age and mileage), a lease is structured to pay for only the amount of the vehicle you use, instead of the whole vehicle.