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Fleet costs are experiencing upward pressure in a variety of areas, ranging from higher vehicle acquisition due to the proliferation of safety systems to increased material costs to manufacture tires, replacement parts, and upfits.
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Although repair incidents were flat, other fleet-related maintenance expenses were up in calendar-year 2017, primarily in labor rates and parts prices. PM costs were up around 3%, while replacement tire costs increased 5-10%.
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For the past four years, tire costs have been stable. But, new cost pressures have emerged in 2017, due to higher prices for the commodities used to manufacture tires and the trend to larger diameter, more expensive tires.
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Extended oil-drain intervals have helped to offset increases in the cost of motor oil because of the expanded use of synthetic oils and cartridge oil filters. Higher labor rates in 2017 exerted upward pressure on preventive maintenance costs.
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Continued stability in crude oil prices, along with longer oil drain intervals, are helping to offset the higher cost of synthetic motor oils that are now required by more automotive OEMs.
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Fleet maintenance costs have remained flat over the past 12 months, with the primary factor being increased overall vehicle quality. Other repair costs adjusted for inflation, were, on average, consistent with those in CY-2016.
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Extending truck replacement cycling parameters beyond stated fleet policy is typically a short-term tactic used by senior management to solve a budgetary constraint; however, there are long-term fleet consequences to this strategy.
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Overall, passenger car maintenance costs per unit, per month declined 2.2 percent in 2016.
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Passenger car tire prices are anticipated to increase in CY-2017. The key factors influencing future replacement tire prices are the cost of materials and the continuing trend to larger diameter and unique tire sizes.
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Fleet passenger car maintenance expenses declined by 7%.
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