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Short Cycling

The service associates of Palo Alto, Calif.-based Varian Medical Systems rely on Subaru's Forester compact SUV because it provides enough cargo capability for their tools, but the fleet manager prefers it for its solid fuel economy, reliability, and high resale value.

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The Ongoing Used-Vehicle Shortage Favors a Short-Cycling Replacement Strategy

Nearly all fleet-related costs, both fixed and operating, are influenced by when a vehicle is replaced. Today’s exceptionally strong wholesale market caused by the shortage of used vehicles offers commercial fleet managers an “out-of-the box opportunity” to short cycle vehicles. A shorter 24-month replacement cycle will maximize resale values, reduce operating costs and downtime, increase negotiating leverage with OEMs, and improve driver morale,