1. Introduction
The COVID-19 pandemic and the war in Ukraine disrupted the global supply chain. The problems with getting raw materials and components resulted in a sudden decrease in the supply of brand-new cars. According to the International Organization of Motor Vehicle Manufacturers (OICA), between 2019 and 2022 car manufacturing dropped by 25% [
1]. The average age of a car in the EU increased to 12 years. Less affluent EU countries have the oldest car fleets, with average vehicles being almost 17 years old [
2]. Statistics show that even in the richest EU countries, such as Germany, France and Italy, cars older than 10 years constitute half of the fleet. Consequently, many millions of cars will soon be scrapped or will be resold to poorer countries, where they will remain in use. In Poland, the average vehicle age is 14.5, which is higher than the EU average [
2]. In 2022 alone, more than 772,000 second-hand cars were imported and brought to Poland. The number of cars older than 10 years has increased by 15% over the last years [
3]. The fact that the car fleet is getting older poses a challenge due to the worse fuel efficiency and higher operational costs of using older cars. Decisions to replace the old fleet are usually made based on economic criteria. The ultimate goal is to minimize the total fleet cost in a given planning horizon. This is known as life cycle cost analysis (LCCA). Every owner is interested in choosing such sequences of the best decisions that would guarantee the lowest cumulative cost during vehicle lifetimes.
One of the biggest costs for every vehicle fleet is maintenance [
4]. Older cars require more extensive service, which involves the thorough overhaul, repair or even replacement of components that prematurely failed. Vehicles with lower repair costs as they get older keep their value better than other cars. A proper strategy of preventive maintenance plays a pivotal role in attempts to maximize vehicle lifespan. More reliable cars can be used for longer to minimize the total operational costs. However, when one of the main components that was supposed to last the vehicle’s lifetime fails, the repair cost can exceed the value of the car. Savings from amortization over a long car lifetime cannot make up for the high costs of repairs. In these cases, it is better to retire the vehicle and have it scrapped.
It can be concluded that motor vehicle replacement decisions represent a trade-off between the purchase of a new, more efficient and less polluting motor vehicle versus continuing to use and maintain an inefficient, higher-polluting old car. However, environmental assessments based only on drive efficiency can lead to flawed conclusions and non-optimal results. The environmental efficiency of vehicles largely depends on the vehicle’s technology. A study conducted by Hawkins et al. [
5] showed how important it is to take into consideration the impact of vehicle production and utilization, particularly when comparing the different vehicle technologies, in particular electric vehicles (EV) and internal combustion engine vehicles (ICEV). Half of the cumulative impact of an EV is linked to production, while for an ICEV most of the impact is linked to driving.
In comparative assessments of vehicle environmental efficiency, the differences of drive/fuel technologies are best illustrated in an approach based on life cycle assessment. Apart from production, life cycle also covers the consequences of maintenance and component replacement, recovery and utilization of materials in cars that are scrapped. In the model of sustainable management of vehicular fleets, life cycle assessment has serious implications for the optimal policy of using, maintaining and replacing fleets. This study provides a framework for better understanding environmental consequences linked to decisions made about maintenance/repair and vehicle replacement intervals.
The life cycle assessment (LCA) model was the starting point in modeling vehicle replacement. To better understand the influence of maintenance and repair, it was necessary to make a thorough inventory based on documented data, with more detailed information than that which can be found in publicly available business inventories, reports or databases. In this study, the complete and confidential service data of 40 petrol and diesel Ford Focus II cars regularly serviced in an authorized Ford Service Center in Szczecin were used. All events and actions linked to servicing were categorized separately for both fuel versions. They include preventive maintenance according to the producer’s schedule, current maintenance performed following the customer’s notice and the vehicle’s diagnostic system readings, premature failures and repair following road accidents. The inventory data for both fuel versions, which include material and media flow and process data, were used to develop the functions of models. The obtained functions present the cumulative burdens of the maintenance phase expressed as eco-indicator points. The thorough maintenance inventory and the assumptions of the LCA model were presented elsewhere, in the authors’ previous paper (Danilecki et al.) [
6]. The estimated impact of some maintenance scenarios turned out to be even twice as big as the influence reported in other studies, mainly due to the effect of customers reporting for maintenance (that effect was previously considered to be negligible).
In this study, the results of previous LCA maintenance were used to develop a vehicle replacement optimization model to minimize the cumulative environmental impact based on the adopted criterion. Simulations were conducted on a set of previously defined environmental profiles for maintenance and unplanned failures and took into consideration technological improvements in drive efficiency in new vehicles. The vehicle replacement optimization problem was solved using a solver that is compatible with a spreadsheet. Owing to the high level of thoroughness and transparency of the inventory, simulation results very well represent the model of replacing an average European car. They can also allow one to assess the unfounded environmental costs linked to non-optimal replacement intervals. The results brought by this study and the implications for vehicle replacement cycle management constitute the added value of this paper.
The text below is divided into five additional sections.
Section 2 reviews previous vehicle life cycle studies to extract relevant information, such as critical factors influencing vehicle replacement decisions by individual consumers and business decision-makers, life cycle impact results with a focus on the potential impact of vehicle maintenance, key assumptions for assessing total life cycle costs of vehicle ownership and tools used to optimize operational decisions and replacement intervals.
Section 3 formulates the model for the environmental optimization of vehicle runtime, data sources and maintenance scenarios.
Section 4 presents and analyzes the results of the simulation and the environmental consequences of replacing an older car with a newer model. Based on the optimization results,
Section 5 discusses policies that minimize environmental impact by comparing them to other previous studies’ results. Environmental optimization results were also compared with economically optimal replacement intervals. Also, the results are considered in terms of non-justifiable environmental costs associated with non-optimal replacement intervals.
Section 6 summarizes the main findings and provides directions for further research.
2. Literature Review
The optimal lifetime of a car can be dictated by different economic, social and environmental factors, which are the basic criteria for the life cycle sustainability assessment [
7,
8]. To effectively manage a sustainable life cycle, it is necessary to determine the appropriate time to replace the car based on the most significant impact indicators. For this purpose, based on the opinion of drivers, Vesovic et al. [
9] defined indicators such as average vehicle age, brand loyalty, estimated emissions, maintenance cost in relation to operating costs, recycling potential and external costs. Then, they defined the conditions under which the driver makes a decision to replace the vehicle based on these indicators. Among other things, it was found that besides the age and mileage of a car, the greatest impact on retirement is the deterioration of the vehicle, which is linked to an increase in maintenance costs.
The assessment of the economic vehicle’s useful life in a given planning horizon is the most frequently discussed criterion in the literature for optimizing vehicle replacement. The approach to finding the optimal solution for the replacement problem depends on fleet size, vehicle age and diversity. These factors directly influence the number of variables considered during the decision-making process [
10].
Spitzlei et al. [
11] studied the costs of owning a passenger car, including maintenance, insurance, loan interest and depreciation. They applied their findings to analyze the economic impact of replacing a typical North American sedan under various usage scenarios. They recommend long replacement intervals despite high maintenance costs and high fixed financial costs. In studies of heterogeneous fleets, which contain cars of different ages, types and functions, replacement decisions can be heavily influenced by budget constraints [
12,
13]. The problem of cost limit is particularly significant in large fleets with high vehicle use. A study performed by Boudart et al. [
14] demonstrated that for a limited budget of a large bus fleet, maintenance costs can have a significant influence on the optimal replacement age. Similar conclusions follow from a study performed by Inegbedion and Aghedo [
15] on truck fleet operation costs. Overloading significantly accelerates the deterioration of vehicles and significantly increases maintenance and total costs. It also speeds up the decision to replace vehicles. Stasko and Gao [
16] introduced a model that supports decisions made about the purchase, resell, repair and modernization of vehicles. It also takes into consideration uncertainty linked to future failures and potential regulatory requirements regarding environmental protection, which may influence the resell value of vehicles.
Bajpai [
17] and Vanderseypen [
18] studied vehicles’ useful life related to the environment and technology. The results of their research show that motor vehicles in use are being replaced faster with the rise of models using new technologies. Economic break-even thresholds play a key role. Higher initial investment costs and limitations resulting from the specific features of electric vehicles [
19] indicate that the competitiveness of EVs can be ensured only in scenarios that rely on high annual use [
20] and thanks to government purchase subsidies [
21]. Incentives are supposed to provide motivation to buy new and scrap old vehicles. Zaman and Zaccour [
22] analyzed the decision patterns of individual consumers and came to the conclusion that the effectiveness of incentives depends on customer readiness to replace their vehicles. Customers with low income and low readiness to replace can be persuaded to speed up their replacement decisions. More affluent consumers may put off their replacement decisions because of economic calculations involving costs and advantages. Tamor and Milačić [
23] analyzed car use patterns in typical US households. The purchase of a brand-new EV does not motivate the owner to scrap the old ICEV, which remains an alternative that can be used for longer trips. Bauer [
24] analyzed the Norwegian system of incentives and local consumer habits and came to the conclusion that the introduction of EVs increased the number of cars in households and the number of driven kilometers. These findings suggest that the environmental advantages can be smaller than those expected in LCA. A study conducted by Kontou et al. [
25] showed that it is not possible to speed up a decision to replace a conventional ICEV when fuel prices increase and the price of electricity and battery packs decrease.
Hofmann et al. [
26] study the shift part of the vehicle fleet from fuel to electricity (with electric vehicles) in China, which is the largest global emitter of greenhouse gases (GHG). Karlewski et al. [
27] analyze life cycle-oriented social aspects regarding the example of the steel and aluminum components used in a car.
The expected acceleration of transport development, together with its implications for the climate and natural environment, need a wider LCA perspective in the context of fleet replacement. There are many studies that have assessed vehicles from an LCA perspective to improve projects and to minimize environmental impacts [
28,
29,
30]. Petrauskiene et al. [
31] combine LCA (life cycle assessment) with LCC (life cycle cost) analysis to compare different propulsion technologies under Lithuanian conditions. Assuming the use of renewable energy sources, diesel vehicles and electric cars are the most effective options. Hawkins et al. [
5] presented one of the most transparent LCAs that rated the potential of reducing the environmental impact of an EV compared to a traditional ICEV. Many similar studies focused on the operation phase when they compared different drive options. However, to improve the environmental competitiveness of EVs, one needs to reduce the carbon footprint during vehicle production, improve battery reliability, improve utilization processes and promote clean sources of electricity. Hawkins et al. analyzed the characteristics of both technologies and their potential environmental implications. The team, however, did not give any recommendations and consequences of replacing cars in a given planning horizon.
A limited number of studies have considered the impact of maintenance on vehicle lifespan. Usually, LCA studies compare repair and replacement options for different components [
32]. Kim et al. [
33,
34] presented a pioneering study, based on LCA methodology, about the environmental effects of replacing a vehicle with a more efficient model. The model was used to optimize car replacement time in a given planning horizon. Dynamic software was used to determine the dynamic environmental parameters of operation costs for each year of the given planning period. The authors took into consideration one-year environmental profiles for five phases of the product life cycle: production of materials, manufacturing, use, maintenance and pull-out from operation. While making a decision to replace based on calculated parameters, the authors also took into consideration technical improvements in successive versions of a model, including a share of recycled materials, material consumption, energy consumption, fuel efficiency, emission coefficients and component reliability for a generic 1995 mid-sized car used in the US. The cost of car maintenance represents the reliability of components. The introduced model made it possible to determine optimal replacement schedules on the condition that only one car is always replaced by another one and that the annual mileage is constant. The results of these studies indicate long optimal replacement intervals.
Usón et al. [
35] in a study on a sustainable mobility model developed from the LCA perspective discussed the period of energy payback when a car is replaced with a more modern one with better fuel efficiency. The model took into consideration the main phases of life cycle, including energy present in materials and energy consumed in production and recycling. Material and process data were taken from a public database and the car unit was based on Volkswagen A4, whose inventory was a point of reference in many other studies. Energy savings during replacement were assessed based on differences of fuel efficiency between the old and new cars using predicted value decrease for new cars and were modeled with a regression equation. The replacement decision was made by putting together the energy saving regression curve with the energy cost of producing a new car. The assessment results confirm the general trend of extending the optimal use period, which is consistent with other studies. The modeling result does not take into consideration the effect of maintenance and the uncertainty level is linked to a great uncertainty of the fuel consumption reduction prognosis over a long time horizon, which in the study was 20 years.
Detailed research on car fleet replacement dynamics is crucial for implementing climate policy goals in countries with a high influx of used car imports [
36]. Barjoveanu et al. [
37] used LCA to assess the effect of a growing number of cars in Romania for different scenarios of car use, such driving on the highway and driving in town at peak and off-peak hours. The study was limited to the use phase and was used to update emission data specific to an older passenger car fleet. The assessment results have a general character and can be used as recommendations for fleet management decisions, which can be useful in softening or even reversing the negative effects on the climate and environment. The results demonstrate that the replacement of older cars with new ICEVs is not enough to reduce the negative impact and suggest that older fleets should be replaced by EVs and hybrid vehicles.
Kagawa et al. [
38] introduced a model of life cycle optimization and applied it to assess the efficiency of a governmental program of car exchanges to reduce CO
2 emissions. The assessment of impact, apart from road emissions, took into consideration the manufacturing of brand-new cars. The results are partially consistent with a study conducted by Barjoveanu et al. [
37]. They determine the minimum age of new ICEVs while at the same time pointing out that the potential of CO
2 reduction is many-fold higher when older cars are replaced with more efficient hybrid vehicles.
The few studies that, with the support of LCA, analyze the environmental effects of fleet changes and optimize replacement schedules indicate a large diversity of optimal vehicle replacement intervals depending on the analyzed environmental problem. At the same time, they do not explain what factors prevail when making a decision to replace a vehicle, as the cumulative impacts of the entire decision-making process before a vehicle replacing are assessed. In many research studies that use LCA to analyze the environmental impacts of changes happening in vehicle fleets and optimize replacement schedules, the effect of maintenance is often neglected or assessed with unreliable, too-general data which do not reflect the changing technology. This study seems to have filled the gap. It has introduced a new level of data accuracy of a generic ICEV. It also has assessed the consequences of realistic scenarios of repair and maintenance consistent with the requirements of modern technology.
5. Discussion
The presented car replacement optimization model is based on reliable maintenance and repair environmental profiles calculated from very detailed LCI data. Environmental profile models modeled as a function of mileage are easily correlated with the age of the vehicle and are easy to use for life cycle optimization. The impact of maintenance and repair varies greatly depending on the replacement policy being used. This paper presents the results of a comparative study to assess the impact of different maintenance and repair scenarios on the results of life cycle optimization. The results of this research are summarized in
Table 1. The data contained in the table show the optimal sets of periods of use of replaced cars with different environmental performances in different replacement scenarios.
Based on the data collected in
Table 1, one can determine when to withdraw the old vehicle (columns 1 and 3) and how long to keep the new vehicle (columns 2 and 4). The result of the assessment is influenced by the available information/forecasts regarding the emission factors of the replaced vehicles and the distribution of the cumulative environmental burdens in a given planning horizon.
The main limitation of these studies is the uncertainty of the results of optimizing long-term replacement policies due to the limitations of the data used in models of environmental maintenance and repair profiles. Uncertainties related to the results also result from the difficult-to-estimate forecasts of vehicle failure rates and the effects of post-collision repairs. An additional limitation is the applicability of models of environmental maintenance and repair profiles, which are representative of medium-sized passenger cars representing a certain level of technological improvement of the drive system and exhaust gas regulation to the EURO 6 standard.
Based on the optimization results, it has been determined that the environmental effects of maintenance and repair are influenced by two attributes: the retirement time of the previous vehicle and the lifespan of the new vehicle. This has major implications for car replacement policies.
In policies with short replacement cycles and a fixed average car use limit, the higher environmental performance of a new car that does not require extensive maintenance can speed up the decision to retire the old car. However, the average lifetime of a new car in the EU is too short to strike a balance of benefits and production burdens that need to be optimized in the much longer term. Therefore, short replacement cycles would require a significant increase in the environmental performance of new cars. And as the impact of maintenance, which is a function of car mileage, is reduced, the focus should be on improving the environmental performance of new car propulsion, where much greater benefits can be achieved. This is now the main driving force behind the government’s old ICEV scrapping schemes, which are replacing more efficient EVs. However, research by Kagawa et al. [
43] shows that incentives to shorten the life cycle of cars may undermine the goals of sustainable development due to the increase in the number of new cars and the increase in emissions related to their production.
The results of optimizing the long-term replacement policy show that extending the life of the new car shortens the use of the old car and results in lower cumulative fees for the replacement of both cars. According to the data in
Table 1, such optimization minimizing the environmental impact can result in extending the life of a new car by up to 30 years. A car’s 30-year useful life is not acceptable, and the potential environmental benefits are uncertain and related to projections of future car technology improvements. In the real world, very strong regulations and technological developments can result in shorter optimal lifetimes, which may result in a lower cumulative impact score. Despite the uncertainties, the optimal use periods set are significantly longer than the average car use limit in the EU. These results are consistent with previous findings by other authors. The research of Uson et al. [
35] shows that the replacement of a vehicle is in no way justified by energy and environmental considerations before the age of 20. Similarly, Kim et al. [
33], due to energy and CO
2, set the optimum replacement period at 18 years.
For long-term replacement policies, a relationship was determined to optimize the use of the old and new car. This relationship shows that by keeping the old diesel car five times longer from 47,500 to 250,000 vkm, the period of use of the new car can be shortened by approx. one-third, from 432,000 to 284,000 vkm. Such a policy increases the benefits of maintaining a new car. Here, the maintenance contribution accounts for about 50% of the total environmental performance of a new car. In the forecast, as the old car’s performance deteriorates more rapidly over time and the new car’s performance improves due to technology improvements, the optimal lifespan of the replacement cars would be even shorter.
The environmental optimization results presented also show compliance with economically ideal replacement intervals. Spitzley et al. [
11], studying life cycle costs, found that in American conditions, the ideal replacement intervals are 17–19 years, despite differences in repair costs, purchase price and vehicle class. Further research is needed from an environmental and economic perspective to better understand all the benefits that improvements in vehicle technology can bring and to carry out a life cycle assessment analysis.
6. Conclusions
In this study, a life cycle optimization model was used to solve the problem of replacing an old car, taking into account maintenance environmental profiles developed on the basis of detailed inventory data from a Ford service center in Poland. While decisions to retire a vehicle are most often driven by economic considerations, optimal vehicle life is also a complex resource and environmental management issue. In both decision-making situations, there is always a trade-off between the costs and benefits of investing in a new, more efficient, reliable and less polluting car, and continuing to use the old car, which is less efficient, more polluting and requires more maintenance and repair. Life cycle assessment (LCA) offers a comprehensive method of assessing the effects of car replacement in order to minimize the environmental impact over a fixed planning horizon.
The study analyzed two vehicle replacement policies: short-term and long-term, which represent different approaches to the problem of replacement by two different groups of individual consumers. The study was conducted using the example of replacing an average car with a newer model that differs in fuel efficiency, emission factors and the distribution of loads and impacts of maintenance and repairs.
Model studies have shown a significant impact of maintenance on optimal periods of replacement. In particular, it was found that short replacement cycles over a period no longer than the average EU car use limit do not provide a balance of benefits and production burdens that need to be optimized over a much longer period of use. In a long-term replacement policy that minimizes the environmental impact of replacement, the optimal lifespan of a new car may be 20–30 years and depends on the lifetime of the old car and the environmental performance of the new car.
The results of such an assessment indicate the need for the continuous improvement of inventory data to keep up with changes in vehicle technology. This is of particular importance for optimizing ICEV replacement policies with EVs that are more efficient but require more resources to produce. Also, the use of EVs raises concerns about the life of batteries and other components with a critical environmental impact. Therefore, the collection of comprehensive LCI data and the assessment of the maintenance and end-of-life effects of the listed EV components will be another challenge for further research.