Rising Fleet Repair Costs: How to Keep from Busting Your Budget

Let’s look at why fleet repairs are rising.

#1 – Postponed Preventive Maintenance (PM)

Fleet managers often postpone PM due to vehicle unavailability or budget concerns. This might resolve the immediate need, but it often leads to more severe and more expensive repairs down the road.

Fleet managers should only postpone scheduled maintenance as a last resort. Of course, the best approach is never to postpone PM, but that can be unrealistic sometimes.

#2 — OEM & Used Parts Are in Short Supply

Original equipment manufacturer (OEM) parts are at a premium due to fleets using vehicles longer than before. Plus, engine and transmission parts across many OEMs have been harder to come by recently, for whatever reason.

Many of the replacement parts mechanics used to repair fleet vehicles were refurbished or reconditioned. Unfortunately, these parts are in short supply due to the shortage of OEM parts across the industry.

Also, many fleets and owner-operators are putting older vehicles back on the road, which need repair parts before they’re ready to roll, and more often due to failure.

#3 – Much Higher Labor Costs

The upward spiral of goods and services across the board has caused everyone to demand more wages to keep up with inflation.

#4 – Longer Repair & Replacement Times

The lack of OEM and refurbished parts has caused many vehicles to be sidelined while awaiting repairs. This delay can force fleet managers to get creative with rentals and short-term leases to fill shipping orders while waiting to get their vehicles back.

Also, fleet managers are being forced to keep trucks and shipping vans on the road longer as the price of new replacements continues to rise. For example, a new tractor can be $125,000 for a diesel rig and $200,000 for an electric vehicle (EV).

#5 – The Use of More Expensive Synthetic Oil

Although synthetic oils cost more initially, you should get more miles per oil change and a reduction in repairs.

Doing What You Can

There isn’t much a fleet manager can do about labor costs, the price of synthetic oil or replacement parts availability, but the fleet manager is the first line of defense against the postponed PM. They must stick to their guns to get it done.