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Vehicle Replacement Sample Plan

Reference Number: MTAS-1964
Reviewed Date: 04/13/2021


This program provides for the planned replacement of all fuel consuming vehicles and equipment, their attachments and implements. The current fleet's replacement value is approximately $ _______________ million and covers _______________ vehicles.

The Replacement Plan will be administered by the city's (suggested — fleet services manager). The Replacement Plan will be based on criteria and a point system as defined below.


  • Establish a Replacement Fund to provide funds for vehicle replacement in advance of need.
  • Smooth the outflow of capital funding and the rotation of incoming and outgoing vehicles year to year to prevent spikes in cash and asset flow.
  • Eliminate the requirement to request approval from the governing body for each replacement purchase.
  • Meet the needs of the end user.
  • Provide a central point of control to account for all fleet specifications, acquisition, assignment, utilization, maintenance, and repair.
  • Maximize fleet resources by providing timely acquisition and disposal of vehicles and equipment.
  • Right size the fleet. Ensure the city has the optimum number and type of vehicles and equipment and that fleet growth is planned and controlled.
  • Promote standardization. This is needed for promoting cost effective maintenance/repair.
  • Optimize vehicle utilization.
  • Comply with state of Tennessee purchasing laws and financial procedures.
  • Reduce per unit maintenance costs by eliminating old, expensive to maintain vehicles and equipment.