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In an industry growing more complex by the day, the stories only get stranger. You may have experienced these stories yourself — and others you may not believe.
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Fleet operators are facing rising costs in acquisition, insurance, maintenance, and repairs — even as fuel prices dip — forcing a rethink of budgeting and vehicle strategies.
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It is critical not to lose the customers’ perspectives. What can be overlooked is that the costs captured in a fleet management information system only captures the small fleet portion — not the real costs of the overall organization.
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Fleet costs are up across the board due to inflationary pressures. Acquisition costs have increased with minimal offset from fleet incentives. Interest rates are higher, impacting the lease vs. buy decision and companies requiring outside funding to replace vehicles.
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Answers to three key questions fleets should know about those ever-important “extras” on their trucks and vans are shared.
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A lifecycle analysis by Vincentric found that total cost of ownership (TCO) for electric vehicles underperforms plug-in hybrid electric and traditional hybrid model counterparts. Running EVs more miles per year has a substantive positive impact on TCO.
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Extended replacement cycles for short-term capital expenditure savings often have the unintended consequence of resulting in greater long-term expenses.
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Topics mentioned in this video include: tightening of fleet budgets; the average age of vehicles trending upward; maintenance issues resulting from extending vehicle life cycles; and an increase in driver downtime.
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A one-size-fits-all for approach getting replacement cycles right? That doesn’t exist. The good news? Fleets have options to customize the best strategy for their unique operation.
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The commercial tire market in 2019 has seen a greater impact of tariffs and duties, impact from the last-mile delivery segment, but overall stability in pricing. Changes are coming.
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