A shorter lifecycle produces long-term savings beyond the first year. When fleets adopt a three-year lifecycle for their trucks, replacing with new technology in year four, they realize a savings of $42,830 in M&R calculated in years four through seven when compared to a fleet driving the same truck for the full seven years.
In addition to the sections above, the report outlines the following:
- In-depth breakdown of maintenance components and costs
- Additional “variable” maintenance costs, including technicians
- Opportunities to prevent M&R issues
- Understanding where shorter asset lifecycles benefit the bottom line
- Comparing costs of newer trucks versus older trucks
- Why newer trucks reduce maintenance costs
Various M&R comparisons in the report are important in helping fleets identify each truck’s “TIPPINGPOINT” - the point at which a truck reaches economic obsolescence, and costs more to operate than to replace with newer equipment. By adopting this approach for each individual truck unit, fleets can better manage and predict replacement cycles while avoiding variable costs, which can also help manage truck orders and avoid lengthy in-servicing time frames.
“A shorter lifecycle can benefit operational strategies since maintenance is more preventative on newer trucks rather than unpredictable breakdowns and recoveries,” said Michael D. Spence, CTP, Senior Vice President, Fleet Services for Fleet Advantage. “Additionally, newer equipment instills more confidence in the driver, and less stress in the cab reduces the number of accidents and incidents, while also increasing driver retention.”
