Date: December 20, 2023
By: Lauren Fletcher
Publication: WorkTruckOnline.com
“At the end of the day, it’s important for fleet managers to take the time and conduct the necessary analysis.
“Allowing an entire fleet to age at the same rate can create a lot of risk for a business, both in costs and risks of added downtime. Inflation and the strong employment market have greatly impacted aging fleets in recent years. Fleet managers know this and continue to feel this first-hand,” said Jeff Krogen, vice president of Fleet Strategy at Enterprise Fleet Management. “It’s not uncommon to see higher mileage vehicles in the shop 12-15 times in a single year, which creates immense disruption in a business.”
Krogen shared an example of businesses holding vehicles so long the life-to-date maintenance is over $30,000 on a ¾ ton cargo van or work truck.
“This reiterates the importance of fleet managers reviewing both downtime and total expense. With the increased cost and limited supply in recent years, we have all been forced to run longer cycles but getting back on track as soon as possible will save a lot of cost down the road,”Krogen shared. “Remember the last day of a high mileage vehicle's life, the day it has a catastrophic failure, can easily cost $10,000 after you consider the loss of remarketing value, downtime, and a more expensive stock buy with more equipment than needed.”
Having the enhanced technology to determine what vehicles retail for and how quickly (days’ supply) helps a fleet remarketer dial in the necessary wholesale pricing.
“While analyzing vehicle data, a key factor to keep top of mind is vehicle reconditioning. Data can quickly assist and show whether investing in a repair before resale makes financial sense,” Krogen noted.”
Click below to keep reading for additional tips on whether to maintain or sell.
SOURCE: https://www.worktruckonline.com/10211786/a-fleet-balancing-act-maintain-or-sell
