MANAGING 10-50 COMPANY VEHICLES
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Operating Costs

TCO Is Not a Static Number

A vehicle’s total cost of ownership is comprised of its fixed costs, operating expenses, and depreciation per year or during the course of its service life, minus its anticipated resale value. During the course of a vehicle’s service life, TCO is subject to change due to a vehicle’s age and numerous external factors, which has a direct bearing on replacement policies.

How Technology Streamlines Procurement

The fleet procurement process, like most other aspects of fleet, is heavily dependent on the capabilities of modern-day technology. Online-based procurement systems help fleet and procurement professionals understand more about their operations so they can make impactful decisions.

Biggest Challenges Facing Vocational Fleet Managers

To get the pulse of the vocational truck and van market, I reached out to a wide cross-section of fleet managers around the country to find out what’s on their minds. Here’s a snapshot of what they told me.

Tire Prices Increase Due to Higher Commodity Costs

Higher commodity prices are putting upward pressure on fleet prices for replacement tires. National accounts are no longer as willing to absorb the majority of price increases, which are between 3%-8% on select tire lines.

Maintenance Costs Increase as Labor Rates Rise

Despite high build quality, vehicle maintenance costs are trending up due to increased advanced technology content, skilled labor shortages, higher tire prices, and more engines requiring synthetic oils and high-capacity oil pans.

Diesel Vans Beat Gasoline Models in Total Ownership Cost

Diesel-powered cargo vans are providing fleet buyers with a lower total cost of ownership than gasoline models, while many diesel-powered trucks aren't recouping the higher acquisition cost, according to a Vincentric analysis.