The task of managing an enterprise fleet comes with countless challenges and questions. One of the most impactful of these questions lies in when to upgrade your fleet vehicles. Calculating lifecycle costs of fleet vehicles and implementing strategies for extending the life of fleet vehicles can help you develop an understanding of when to upgrade vs. maintain your fleet vehicles. In this guide, learn how to extend the longevity of your fleet and quickly diagnose whether it’s time for maintenance or an upgrade.
In many situations, strategies for extending the life of fleet vehicles are more useful than steps for upgrading. However, there are a few signs to look out for that can indicate that it’s time to upgrade your fleet vehicles.
If you’re wondering when to upgrade your fleet vehicles and you’ve got a feeling that the day might come soon for some of your fleet, begin by assessing vehicle performance and downtime. Check your records and collaborate with your fleet maintenance team to identify trends in performance. If it’s evident that your vehicles aren’t as reliable as you need them to be and they’re causing unplanned downtime in your business, it might be time for an upgrade. Likewise, if any of your vehicles have reached an age or status that compromises fleet safety in any manner, they’ll need to be upgraded as well.
Technological advancements like streamlined records and customer portals make fleet operations more efficient and accurate. Fleet managers can better understand the health of their vehicles with these advanced tools and processes. With a reliable fleet maintenance team at your side, you can learn from an accurate view of your fleet’s performance over time. Using thorough records, fleet maintenance providers like Torque by Ryder can help you identify trends and patterns in your vehicle performance and maintenance data.
Lifecycle costs of fleet vehicles include purchase price, financing, fuel, maintenance, insurance, and depreciation. Understanding every element involved in the lifecycle costs of fleet vehicles can help you better identify when to upgrade your fleet vehicles and when maintaining a vehicle may be more cost effective than opting for an upgrade.
Over time, fleet vehicles lose their value, or depreciate. Residual value refers to the estimated resale value of a vehicle. As fleet vehicles age and continue to depreciate, their residual value decreases, meaning that older vehicles tend to have lower residual values.
The extent to which a fleet manager should take residual values and depreciation into account varies based on long-term goals and business objectives for the fleet. In many cases, the resale of fleet vehicles is not a relevant aspect of the fleet’s business model. Instead, fleet managers are focused on keeping safe and effective vehicles working and performing fleet tasks for as long as possible. Fleet managers must balance their unique business needs with residual value calculations to identify the best course of action for aging vehicles.
In addition to calculating residual values, fleet managers must also weigh the maintenance costs of old vs. new vehicles to determine whether it’s time to upgrade or stick to maintenance. As a rule of thumb, new vehicles tend to incur lower maintenance expenses than older ones. However, maintenance costs can vary widely and will depend largely on the level of ongoing care each vehicle receives.
For example, a fleet full of older vehicles that are meticulously cared for with preventive maintenance and proactive checks can easily incur fewer repair costs than a new fleet of vehicles that don’t see proper care. By following strategies for extending the life of fleet vehicles and using last mile fleet maintenance practices, fleet managers can reduce overall costs and continue using aging vehicles for longer periods of time.
Key strategies for extending the life of fleet vehicles include staying up to date on maintenance requirements and integrating new technology into aging vehicles.
The best way to ensure your fleet vehicles stay on the road as long as possible is to keep up with regular maintenance checks. Creating and sticking to a regular maintenance schedule ensures that each vehicle stays in optimal condition. Not only does this practice extend the lifespan of your vehicles, it also saves you money by reducing the likelihood of costly repairs and breakdowns that can wreak havoc on your schedule.
Integrating new technology into older vehicles can help you make the most of your current fleet without sacrificing the latest developments in fleet tools. Adding new telematics systems, safety enhancements, and even fuel-efficient engines can help in the effort of modernizing aged fleets with new technology. Stretch your investments further by joining the old with the new!
To expand the lifespan of your vehicles while boosting efficiency and fleet outcomes, invest in modernizing aged fleets with new technology.
Telematics systems use GPS and on-board diagnostics to provide analytics, reporting, and monitoring on key aspects of a fleet vehicle’s journey. By integrating telematics systems into aged fleet vehicles, managers can leverage real-time data on vehicle location, fuel consumption, engine diagnostics, route efficiency and more. These insights help drive continuous improvement in terms of cost reduction and driver safety.
Before modernizing aged fleets with new technology, fleet managers should take time to evaluate the life expectancy of each old vehicle and calculate the possible ROI of these technological investments. In many cases, old vehicles can serve a fleet extremely well with a few strategic upgrades and a consistent maintenance schedule.
To stay on top of maintenance without disrupting your fleet schedule, partner with Torque by Ryder for on-site fleet maintenance you can rely on. Get started today!
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