Automotive Fleet
MenuMENU
SearchSEARCH

Out-of-Control Acquisition & Repair Costs Batter Industry

Fleet managers are being challenged by out-of-control new-vehicle acquisition and repair costs. Auto parts prices have reached unreasonable levels that no procurement manager could ever have fathomed five years ago.

Mike Antich
Mike AntichFormer Editor and Associate Publisher
Read Mike's Posts
August 30, 2023
Out-of-Control Acquisition & Repair Costs Batter Industry

Fleet vehicle repairs of $15,000, $20,000, or more are becoming more routine because fleets are being forced to extend services lives due to sourcing constraints and the higher cost of replacement parts.

Photo: Canva

3 min to read



As part of an ongoing series, Automotive Fleet magazine interviews subject-matter experts around the industry to get a pulse on the state of the commercial fleet market. In conversations with fleet managers, one of the top challenges identified is the relentless upward pressures on fleet costs.

To learn more about these market dynamics and their impact on the fleet industry, AF Associate Publisher Mike Antich reached out to Bob Martines, CEO of Corporate Claims Management Inc., a fleet and accident management company he founded in 1994. Martines is a 47-year industry veteran starting his career in 1977 with Salex, a company that pioneered the fleet services industry with the first nationwide collision and major mechanical programs exclusively for fleets.

Ad Loading...

AF: What are the current market conditions in terms of new-vehicle acquisition and repair costs for fleets?

Bob Martines, CEO of Corporate Claims Management Inc.

"We are staggered by the costs that are creating such havoc, including average repair costs increasing by thousands — not hundreds, thousands — of dollars more, which has over-maxed budgets."

Photo: Corporate Claims Management

MARTINES: The situation is ugly in many instances. The residual collateral damage, minimal work force to rely on, ridiculously higher repair costs, higher acquisition costs, extended repair delays all equate to a very difficult time in fleet management.

First is the out-of-control acquisition and repair costs. Automotive parts prices have reached unreasonable levels that no fleet or procurement manager could have ever fathomed compared to the recent past. We are staggered by the costs that are creating such havoc, including average repair costs increasing by thousands — not hundreds, thousands — of dollars more, which has over-maxed budgets. Add excessive rental costs and less recovery returns, fleet managers are being challenged more than ever.

As an example, how can a fleet manager finally accept delivery of a vehicle that he or she waited six to seven months to receive in inventory at a price perhaps $5,000 more than they should have paid, then face the cost of a repair that now equals 75 to 80% of the vehicle’s book value? Airbags, modules, sensors, and other safety features can add $8,000, $10,000, or more to a routine repair. Repairs of $15,000, $20,000, or more are becoming more routine due to the fact fleet managers have no choice. They cannot get a replacement vehicle quickly, so they decide to repair a vehicle that, in the past, was deemed a borderline total loss. Add the extended rental costs; no longer just two or three weeks, it is now six to 10 weeks in some instances. It is enough to break even the strongest-willed individuals.

AF: What other issues are you encountering in fleet maintenance and new-vehicle warranty work?

Ad Loading...

MARTINES: The use of aluminum parts are becoming more prevalent, and specific certification per vehicle model is surfacing more and more. While shops can handle the repairs, not all shops, including dealerships, are equipped with the training, the personnel and certification. Many certified shops are pushing repair appointments out two or three months due to the overload/backlog and unavailability of parts. That works for a safely drivable vehicle; however, for disabled vehicle, the extra rental costs can be extremely costly for a company.

The same holds true for warranty work. While the repairs should be covered, waiting six to eight weeks for the dealer to help is useless, so many fleet managers are getting work done where they can hoping to get reimbursement after the fact. Without solid proof of the delay, the money will not be returned.

AF: What are you hearing from your fleet clients about the transition to electrification?

MARTINES: Everyone know the EVs are becoming more popular; however, not every company can adapt to their usage. Senior management does not want to face the pushback from colleagues, so they go the path of the many rather than stand the ground of a fleet manager.

I spoke with a client who was mandated to include EVs in his fleet order. He ordered 25 units, and they are now garaged, not getting any use as the fleet he manages simply cannot use the vehicles. Some deeper thought must take place before placing massive orders for these vehicles.

Subscribe to Our Newsletter

More Operations

A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

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.

Read More →
OperationsApril 30, 2026

Factory Installed vs. Aftermarket: Choosing the Right Telematics Path & Managing the Data

As fleets rethink how they capture, manage, and act on vehicle data, telematics is at a major inflection point. In this episode of the Fleet Forward Podcast, we dive deep into one of the most pressing questions facing fleet leaders today: Should you rely on OEM factory-installed connectivity, aftermarket devices, or a hybrid of both?

Read More →
Ad Loading...
OperationsApril 30, 2026

What Real-Time Data Reveals About EV Cost, Performance, and Scalability

Experts from telematics analytics, fleet-as-a-service operations, and national EV benchmarking share how real-time data is reshaping fleet strategy—dispelling assumptions, validating best practices, and exposing costly missteps.

Read More →
OperationsApril 30, 2026

Planning Through Policy Shifts: What Fleets Must Track in 2026

A powerhouse panel featuring experts from the American Automotive Leasing Association, CalSTART, and municipal fleet leadership dives into the realities of navigating shifting emissions rules, regulatory waivers, federal agency actions, the future of the EPA’s endangerment finding, and the push for unified standards. They also examine the impacts of tariffs, autonomous vehicle policy, battery innovation, and the accelerating global EV market.

Read More →
OperationsApril 30, 2026

Managing Market Turbulence with Strategic Fleet Insights

This episode kicks off with a deep dive into the technologies and market forces reshaping today’s fleet landscape. Host Chris Brown is joined by Laolu Adeola (Leke Services), Tyson Jomini (J.D. Power), and Richard Hall (ZappiRide) to break down real-world data, shifting incentives, and practical strategies fleet leaders can use right now.

Read More →
Ad Loading...
Clipboards with flooded cars in background.
Disaster Responseby Chris BrownApril 30, 2026

Adapting Fleet Policy When Disasters Strike

In the middle of natural disasters fleet managers must shift priorities to protect people and assets. What policy items should be loosened, and when should the line be held?

Read More →
OperationsApril 24, 2026

EV Reality Check: How Fleets Are Managing Policy Shifts, Safety, and Scaling Challenges

In this episode, fleet leaders from municipal, university, and private-sector organizations share a candid EV reality check. From infrastructure setbacks and policy whiplash to grant funding, total cost of ownership, and charging resiliency, this conversation dives into what it actually takes to scale electrification in the real world.

Read More →
2019 Automotive Fleet Hall of Fame inductees Joe LaRosa Bob Miesen Bud Morrison Theresa Ragozine portraits
Operationsby StaffApril 21, 2026

Fleet Hall of Fame Honorees Through the Years

A running list of the fleet industry’s most influential leaders, recognized for their lasting impact on commercial fleet management.

Read More →
Ad Loading...
Operationsby Chris BrownApril 20, 2026

2026 Salary Survey: Six-Figure Fleet Manager Salaries Become the Norm

After a decade of lagging compensation, fleet manager pay is climbing. But expanding responsibilities, larger fleets, and growing complexity continue to redefine the role.

Read More →