Related: Vehicle Cost Analyzer Tool Launched
Fleet TCO Reaches 5-Year Low, Element Says
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.

Infographic courtesy of Element.

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.
"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.
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.
More Operations

Your Local Dealer Knows More Than You Think
Your local dealer can provide an information advantage that extends well beyond courtesy deliveries.
Read More →
Fleet Meets: Austin Schutte
Here are some industry insights, personal touches, and words of advice from the CEO and Founder of Anew Solutions.
Read More →Soap Box Derby Challenge: What’s Powering Team Brown
The car is coming together, the students are solving real build problems, and the fleet industry is helping push Team Brown toward the starting line.
Read More →
Commercial Fleet Sales Contribute To June, YTD Gains
The fleet sector has boosted its vehicle purchases at a reliable pace in the first half of this year compared with 1H 2025.
Read More →What Fleet Managers Really Want From Vendors
From customer service frustrations and technology breakdowns to RFQs, change management, and the growing impact of turnover across the industry, this conversation pulls back the curtain on the real operational challenges fleet managers are navigating every day.
Read More →Fleet Safety Masterclass: Industry Leaders on Storytelling, Strategy & Innovation
In this special masterclass episode, industry leaders break down what it really takes to build safer fleets in today’s increasingly distracted and data-driven world.
Read More →Integrating Legacy Fleet Systems and Historical Data
In this episode, we bring together fleet and technology leaders to unpack the realities of data integration, system migrations, and the evolving role of AI in fleet management.
Read More →From Resistance to Results: Change Management Strategies for Fleets
From new technologies and safety programs to evolving regulations, fleets are under constant pressure to adapt. But as Dr. Betz explains, success isn’t about the system you implement—it’s about whether your people actually use it.
Read More →Where We're Headed: A Practical Look at AI in Fleet
Discover how AI is actually being deployed in fleets, not just marketed, including practical use cases and emerging risks.
Read More →
How Coca-Cola United Protects Its Fleet from Growing Legal Risk
Growing legal exposure can put fleets at risk. Here's one company's approach.
Read More →

