Published in Fleet News February 2011
“Research reveals ‘true story’ of contract extensions
“However, findings from Fleet200 – the top 20 fleets in each of ten key business sectors – revealed an average replacement cycle for cars of 43 months and 55 months for vans.
“Professor Colin Tourick, chief executive officer of automotive consultants Aisby and Co, conducted his own research with the top 25 leasing companies in the FN50.
“He discovered that where three years ago around 22% of their business was on a four-year contract, that had risen to 26% in 2010. However, three-year contracts had also increased from 63% to more than 65% over the same period.
“It bore out what I already knew. Three years and 60,000 miles is still the benchmark period,” Tourick told delegates at the recent Vehicle Remarketing Association (VRA) conference. “Yes, there had been a growth in four-year business, but that had been at the expense of two-year business.”