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Hi Raddy, You don't oil Western Red Cedar cladding as the timber contains natural oils. If the boards have decayed and are no longer weather tight you should replace.
Once you have replaced the cladding with Cedar you probably won't have to do it again as Cedar will last for 40 yrs plus.
Frankly, cedar will outlive anything plastic. I'm not too sure I trust all this plastic cladding anyway, I suspect it can allow a lot of decay to happen out of sight behind the superficial plastic covering, leading to expensive and extensive repair work when it does eventually show up. Anyway, I've never had wooden cladding that looks ok hiding extensive rot, but it has happened with plastic cladding several times now.