The total cost of ownership of fleet vehicles managed by Element Financial Corp. fell 14% in 2015 from the prior year and has reached a five-year low due to low fuel prices, the fleet management company has announced.
by Staff
May 17, 2016
Infographic courtesy of Element.
2 min to read
Infographic courtesy of Element.
The total cost of ownership of fleet vehicles managed by Element Financial Corp. fell 14% in 2015 from the prior year and has reached a five-year low due to low fuel prices, the fleet management company has announced.
The findings came as part of Element's newly announced Element Total Cost of Ownership (TCO) Index, which will track TCO factors such as vehicle depreciation, fuel maintenance and interest expense. The annual index assigns 2013 a baseline score of 100 and rates future years. For 2015, the index was 83.3, according to Element.
Ad Loading...
"The Element Fleet TCO Index suggests that now may be a good time to replace vans and pickups while the resale market is still strong for those types of vehicles," said Bob Sandler, senior vice president of strategic consulting for Element Fleet Management. "Lower gas prices provide an opportunity for fleets to make replacement investments, increasing safety and fuel efficiency without a major year-over-year spike in expenses."
Element also noticed an increase in average fuel economy data from vehicles in the data, indicating that fleets have been adding higher-mpg vehicles.
Element noted three factors it considered in its TCO analysis, including average fuel costs, depreciation, and monthly maintenance expenses.
Average U.S. fuel costs fell 29%, because the price of fuel fell to $2.43 per gallon in 2015 compared to $3.36 the previous year and improvements in vehicle miles per gallon.
Depreciation costs rose 1% due to a higher average initial cost of vehicles and offset by continued strength in the resale market for vans and pickups.
Ad Loading...
And lastly, a 1% rise in average monthly maintenance costs resulted from a 1% increase in unscheduled repairs and 4% increase in preventative maintenance expenses. Tire costs remained static.
The index includes five vehicle categories including pickup trucks, cargo vans, sedans, SUVs, and minivans. Element sourced the data from all of its operations, including recent acquisitions.
For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.
James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.
Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.
BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.
Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.
AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.