Surplus

A public agency cannot simply sell a vehicle because the fleet is finished with it. The asset is normally declared surplus through a defined process, and only then may it be disposed of. Depending on the jurisdiction that declaration may require a governing body action, a purchasing department determination, or both.

The step exists because the asset belongs to the public rather than to the department using it. Declaring it surplus is the record that it is genuinely no longer needed, which is what makes a subsequent sale defensible. Other departments are often offered the asset first for the same reason.

Where fleets lose value here is in delay. A vehicle sitting for months between coming out of service and being declared surplus continues to depreciate, occupies yard space, and sometimes gets quietly cannibalized for parts, none of which improves what it eventually returns.