Key Takeaways

• Fleet maintenance cost is the total spent on maintaining vehicles in their best condition. This includes all fixed costs, like the insurance, as well as variable costs, such as repairs. Knowing these costs can help fleets with better fleet management and budgeting.

• The impacts on maintenance costs are greatly dependent on vehicle type, utilization patterns, fuel efficiency and driver behavior. By proactively monitoring these elements, fleet managers can save costs in more ways than one.

• Measuring fleet maintenance cost per mile is a valuable benchmarking practice to determine the efficiency of operations. By consistently reporting out on this metric, fleet managers can better understand where to focus budgetary efforts and identify opportunities for savings.

• Implement proactive maintenance strategies such as routine inspections. Tackle small problems early to avoid expensive fixes and prolong your fleet’s longevity.

• By utilizing technology such as fleet management software and telematics, maintenance processes can be streamlined, vehicle performance tracked, and operational efficiency optimized.

• The savings are huge when investing in driver training programs, which greatly reduce vehicle wear and tear. On top of that, it enhances fuel efficiency and reduces fleet maintenance costs in the long run.

Fleet maintenance cost refers to the total expenses involved in keeping vehicles in a fleet operational and reliable over time. This is everything from routine servicing, repairs, fuel, tires, parts, and labor costs to unplanned breakdowns and downtime.

Properly controlling these costs has the potential to significantly improve a fleet’s productivity, increase vehicle longevity, and minimize out-of-cycle spending. For fleet businesses, keeping a tight leash on maintenance costs is essential to maintaining overall business costs and operating without a hitch.

Considerations such as vehicle type, mileage, age, and maintenance schedules are just a few factors that contribute heavily to the overall cost. In today’s post, we’ll take a look at ways to reduce your fleet maintenance costs.

We’ll share these best practices and bring you new, actionable insights to keep you working efficiently and avoid unnecessary waste.

What is Fleet Maintenance Cost?

Fleet maintenance cost refers to all the expenses involved in keeping a fleet of vehicles running efficiently and in good condition. This comprises both fixed costs, like insurance, and variable maintenance costs, including repairs and fuel. These costs fluctuate according to vehicle age, vehicle function, gasoline consumption, and repair frequency.

Another point to consider is that the older vehicles you have, the more often they will require servicing. Conversely, electric vehicles (EVs) have increased repair expenses since they come with more specialized components like ADAS-integrated windshields requiring recalibration.

Getting a handle on what these costs are is key to successful fleet management. Variable costs can change with factors such as maintenance activities or mileage, but fixed costs including costs such as vehicle leasing are stable over time.

Oil changes, for example, are up more than 9 percent from 2022 to 2023 due to inflation. EV repair costs 65% more compared to internal combustion engine (ICE) vehicles. That’s a staggering figure that is only compounded by the soaring cost of parts and labor. These escalating expenses highlight an urgent need for proactive, data-driven approaches to maintenance budget management.

As with all fleet maintenance costs, it directly affects operational efficiency and profitability. Using tools like Fleet Management Software (FMS) can help track mileage, monitor fuel consumption, and minimize idle time, lowering costs.

Telematics data is another trend-accelerated powerful tool, providing valuable insights related to maintenance timing, as well as driver behavior. Partnering with nationwide maintenance networks offering negotiated pricing or addressing technician shortages is a practical way to manage expenses.

Canada projects 54,000 new technician jobs by 2031.

Factors Influencing Fleet Maintenance Costs

Identifying the factors that impact fleet maintenance expenses is key to successful fleet management. Vehicle type and usage are major factors in total costs. Finally, regulatory compliance is a major guiding factor in setting these costs.

Vehicle Type and Usage

Every vehicle type has maintenance costs based on their distinct design and purpose, and fleet owners are often deploying a multi-vehicle fleet. For example, heavy-duty trucks need more frequent engine service than light-duty vans because of the additional stress of continuing to haul loaded across a federal mileage threshold.

Usage patterns are an important factor as well. In addition, short-haul vehicles experience more stop-and-go driving, which increases brake and tire wear. Long-haul vehicles have maintenance due less frequently, but it’s more comprehensive maintenance when it is due.

The composition of the fleet largely determines how much it will cost. For example, bringing electric vehicles (EVs) into a fleet increases maintenance costs due to their advanced materials and greater reliance on specialized labor. Further, delayed parts mean extended periods of downtime.

• Sedans: Lower maintenance costs, ideal for urban routes.

• Heavy-duty trucks: High repair and fuel costs, suited for long hauls.

• EVs: Expensive repairs and parts, but reduced fuel and oil costs.

Fuel Consumption Impact

Higher fuel consumption means an unhealthy and poorly maintained engine. Vehicles with fuel economy below the EPA national average always require more frequent upkeep to address concerns such as carbon accumulation.

High amounts of nonproductive idling add additional engine hours, increasing wear and tear without any benefit. Telematics systems help reduce these costs. Research found that fleets can save 14% in fuel costs by maximizing the use of telematics systems.

Driver Behavior and Maintenance

In particular, aggressive driving behaviors like hard braking and rapid acceleration speed up wear and tear on maintenance-intensive parts like brakes and tires. Lack of adherence to maintenance schedules further exacerbates an improper maintenance situation.

Poor maintenance decisions result in expensive repairs. Addressing heavy usage, an investment in training programs to encourage smoother driving habits and more regular vehicle checks will help immensely. Monitoring systems can identify problem areas, enabling corrective action.

Regulatory Compliance and Standards

It keeps maintenance schedules financially sound by staying ahead of safety and environmental regulations. Failure to comply leads to increased fines and emergency repairs, adding to expenses even more.

Consistent checks ensure that fleets stay compliant and avoid unforeseen breakdowns, protecting both the bottom line and fleet reputation. Keeping in the loop about regulation revisions is critical to steering clear of unexpected costs.

Understanding Fixed vs. Variable Costs

Fleet maintenance costs are typically divided into two categories: fixed and variable. Understanding these cost types is key to developing a comprehensive fleet budget and ensuring cost efficiency. Variable costs increase as your fleet usage increases. In contrast, variable costs depend on usage or other outside factors.

Fixed Fleet Maintenance Expenses

These predictable, business-as-usual expenses are the foundation of any fleet budget. These include insurance premiums, lease or rent payments, driver salaries, and licenses. These costs do not fluctuate with fleet activity. They don’t change at all if the vehicles are moving or not.

Take employees, like sales representatives, which automatically become part of fixed costs even if trip making goes down. Understanding and accurately forecasting these expenses is an important part of any agency’s long-term financial planning.

For many vehicles, fixed costs represent more than 60% of annual vehicle costs, as they include depreciation, property tax, and vehicle registration fees. Paying a fixed monthly fee can go a long way in buffering their effect.

By monitoring these costs consistently, you may identify opportunities to renegotiate insurance premiums. Beyond the lease savings, there is further opportunity to save by changing lease terms.

Variable Fleet Maintenance Expenses

Variable costs are driven by fleet operation levels and market factors. These are things like fuel, oil, replacements of tires and other maintenance repair items. In fact, these costs can be incredibly variable, sometimes changing day to day and week to week.

Uncontrollable factors can really blow your budget. For instance, rising fuel costs or the sudden requirement for a major repair can really blow your budget. To avoid being caught off guard by these costs, keep a contingency fund and keep an eye on variable expenses, particularly parts replacement and labor.

Smart investments in proactive maintenance, like regular inspections and preemptive fixes, keep the big, surprise expenses down. Common variable expenses to track include:

• Fuel costs

• Replacement parts

• Labor charges

• Tire wear

Calculate Fleet Maintenance Cost Per Mile

Knowing your fleet maintenance cost per mile (CPM) is important for a big-picture look at operational efficiency and long-term asset management. CPM is a basic yet critical measurement. In short, it tells you how much it costs to run your fleet per mile.

To find it, take your total cost of ownership (TCO) and divide it by the number of miles you drive each year. This formula allows fleet managers to get a more accurate gauge on the total costs and state of operations. TCO includes fixed costs as well as variable costs.

Fixed costs include things like licenses, salaries, and lease payments. Variable costs include routine maintenance repairs and other unforeseen costs. Tracking CPM gives you important advantages such as: Track this metric to identify trends in maintenance requirements.

It will provide you the tools to identify where your costs are going above where they should be. As an example, CPM spikes can be an indication of poor operations with signs of wear or poor routing. This data allows fleet managers to make better decisions like scheduling preventative maintenance or investing in fuel-efficient vehicles.

Research shows that telematics can reduce fuel costs by up to 14%, but while direct maintenance savings are less documented, monitoring CPM ensures no expense goes unnoticed. Establishing a baseline regularly reviewing CPM helps ensure accurate budgeting and forecasting.

By understanding historical trends and adjusting for current conditions, such as inflation or changing fuel prices, fleet operators can better predict future maintenance demands. Fleet management software simplifies this process by tracking all expenses in real time.

It keeps a strict set of accounting procedures, holding transparency top of mind. At the end of the day, making these calculations consistently will provide the most accurate data to inform our operational strategies.

Proactive Maintenance Strategies

Proactive maintenance is vital to managing fleet maintenance costs, while keeping vehicles safe, reliable, and efficient. Address problems before they become costly emergencies. This proactive maintenance strategy helps minimize the risk of unexpected downtime while maximizing the operational lifespan of your fleet.

It’s a common sense approach that lowers repair costs by 40%. More importantly, it improves performance across the board, which makes proactive maintenance absolutely vital for fleet success.

Schedule Regular Maintenance Checks

A structured maintenance schedule allows you to identify and resolve minor issues early, preventing them from developing into costly repairs. Think about how preventative measures, like regular oil changes and tire rotations, prolong engine life while increasing fuel economy.

Online maintenance tracking software makes it easier to keep up with these schedules and maintain comprehensive records, cutting down directly on occurrences of unplanned downtime.

Establish a Maintenance Program

Building a tailored maintenance program involves incorporating preventive, predictive, and corrective measures. Preventive maintenance, such as time-based oil changes, suits standard assets, while predictive or condition-based approaches work better for IoT-enabled vehicles.

Continuous evaluation using performance data ensures the program remains efficient and cost-effective.

Optimize Maintenance Intervals

Synchronizing repair schedules with vehicle operation and the automobile manufacturer’s suggested maintenance schedule is essential. Consider the case of a high-mileage, dense-area delivery truck where daily servicing is required.

Doing so will save you costly wear-and-tear expenses and minimize operational disruptions.

Use Technology for Efficiency

Telematics and IoT solutions can offer real-time insights into vehicle conditions, allowing for fast corrective action when thresholds are exceeded. This investment cuts down on expected repair delays, maximizes fleet uptime, and facilitates data-driven decision making.

Track Vehicle Maintenance Efficiently

These digital tools help increase accountability and are invaluable when it comes time for compliance audits. Functions such as automated and predictive alerts, along with complete asset history, take the guesswork out of servicing equipment.

This protects warranties while decreasing costs.

Reduce Costs with Fleet Management Software

Fleet management software is one of the most effective ways to keep maintenance costs in check by streamlining critical processes. It makes it easy to automate processes such as preventative maintenance measures, fuel consumption monitoring, and vehicle diagnostics, which eliminates inefficiencies and redundancies to operations.

These systems automate compliance tracking for maintenance inspections and driver qualification. They help save your managers time and ensure everything is running as smoothly as possible with your fleet operations. Long-term, fleets save an average of 15% to 20% by being better managed and making better decisions informed by data.

Utilize Telematics Data

Telematics data delivers invaluable visibility into their vehicle performance and maintenance needs. Fleet managers can easily analyze patterns such as frequent breakdowns and high fuel consumption. This proactive approach empowers them to address problems before they become bigger problems.

Veteran metrics to stay on top of would be engine health, tire pressure, fuel efficiency. With real-time data on Geotab’s intelligent platform, you can make better decisions and take action right away. By streamlining fleet operations, you’ll reduce expensive repairs and increase productivity.

Monitor Driver Behavior

Driver behavior can have a direct and serious impact on vehicle health. Tracking behaviors such as hard braking, speeding, and excessive idle time will pinpoint driver behavior that contributes to increased maintenance costs.

Holding fleet vehicles accountable to encourage safer driving reduces costly vehicle maintenance repairs and prolongs fleet vehicle longevity.

Schedule Maintenance Reminders

Automated reminders help make sure vehicles get serviced on time, avoiding expensive damage resulting from missed appointments. Fleet management software tools greatly help in scheduling maintenance and repairs and being able to track all service history.

They notify managers of future needs, encouraging uniformity across operations.

Decrease Vehicle Wear and Tear

By running routine maintenance and teaching defensive driving, which puts less wear on the vehicle, you’ll increase fleet lifespan. Cost drivers simple practices such as keeping up with tire pressure and not overloading vehicles reduce long-term costs by a huge margin.

Reduce Idle Time

Along with unnecessary fuel consumption, this leads to greater maintenance requirements. Cutting idle hours with route planning and driver training can cut thousands from costs each year for every vehicle.

Leverage Technology for Cost Reduction

In fleet management, technology should be an essential component to help manage maintenance and fuel costs. With the right innovative systems and tools, you can improve process efficiency and productivity to help drive insights that minimize costs. From telematics to predictive maintenance, the right technologies equip you to take data-driven decisions that can lead to big savings.

Implement Fleet Management Systems

All-in-one fleet management software makes it easy to manage your fleet by bringing together powerful features such as maintenance management, fuel management, and driver score tracking. These systems enable you to track warranties, potentially saving thousands annually on repair costs, while ensuring timely service based on reliable data like engine hours or odometer readings.

Key features to consider include:

• Real-time maintenance alerts for preventive measures

• Fuel card integration to manage consumption and expenses

• Driver behavior analytics for improved safety and efficiency

Geotab’s open platform provides easy integration of fuel data. This capability allows you to track trends over time to consume more efficiently and accurately. Fleet managers who utilize systems like these typically save 15% to 20% on their costs.

Utilize Predictive Maintenance Tools

Predictive maintenance tools use vehicle data and usage patterns to forecast repair needs, reducing unexpected breakdowns and optimizing service schedules. Popular choices range from telematics systems such as Geotab that integrate analytics with real-time data to guarantee maintenance decisions are proactive, not reactive.

Some benefits of predictive tools are:

• Reduced downtime due to early problem detection

• Lower repair costs by addressing issues before escalation

• Improved vehicle reliability and lifespan

Employ GPS Tracking Systems

GPS tracking makes it easier to plan routes and reduce fuel consumption through careful analysis of driving patterns and optimal pathing. Walmart’s fleet, for instance, used data to realize $140 million in savings and reduce CO2 emissions by 87,000 metric tons.

Advantages of GPS tracking include:

• Better fuel management (14% savings max reported per Telematics Wire)

• Enhanced route optimization for reduced mileage

• Real-time location monitoring for better fleet coordination

Optimize Fuel Consumption Strategies

Lowering fuel consumption is likely the most important consideration of maintenance fleets, as it has a direct effect on operating expenses and profitability. Fuel prices constitute about 60% of fleet operating costs. With the smart investment in fuel consumption strategies, you’ll put your budget to work and keep your vehicles running strong.

By taking these smart, tailored approaches, fleet managers can see tangible cost savings and maximize the return on investments by extending the life of their assets.

Monitor Fuel Efficiency

Measuring fuel efficiency during daily fleet maintenance should become the bedrock of fleet care initiatives. Consistent tracking gives you a clearer picture of vehicle performance and can help identify trends that indicate when maintenance is required.

The U.S. Department of Energy states that driving on under-inflated tires reduces your fuel economy. Indeed, for all reductions this is as high as 3%. Handling this upfront improves efficiency while saving expensive fixes down the road.

Key performance indicators (KPIs) for monitoring fuel efficiency include:

• Kilometers per liter (km/L) for each vehicle

• Average fuel consumption by route

• Frequency and duration of idling

All of this data, in turn, can help inform and optimize vehicle replacement schedules, or inform changes to EV maintenance schedules.

Implement Fuel-Saving Techniques

So practical fuel-saving methods are critical for reducing costs. Taking care with regular maintenance like oil changes and air filter replacements go a long way in helping your vehicle achieve optimal mileage.

Driver training is an important strategy, focusing drivers on practices such as avoiding idling, driving slow speeds and avoiding overuse of four-wheel drive. Every 5 mph over 80 km/h, for example, wastes money worth an extra CAD $0.36 per liter.

Actionable strategies include:

• Reducing vehicle weight, since every 100 lbs (45 kg) reduces efficiency by 1%.

• Encouraging smooth acceleration and braking

• Keeping tires properly inflated

Route Optimization for Fuel Savings

Optimizing routes adds a whole new layer of savings. Today, technology such as GPS systems and sophisticated route management software helps fleet managers determine the most direct, fuel-efficient routes.

Smart routing saves fuel as well as wear and tear on vehicles. Tools like telematics systems can identify traffic patterns and suggest alternative routes in real time.

Effective methods for route optimization include:

• Using route-planning apps to avoid congestion

• Scheduling deliveries during off-peak hours

• Analyzing past trips to improve future plans

Continuous evaluation ensures these strategies remain effective over time.

Partnering for Fleet Maintenance Success

Developing close relationships with trusted fleet maintenance partners is a smart strategy. Partnering together, this type of proactive, focused approach can dramatically improve the quality and efficiency of service delivery. Unplanned maintenance is three to nine times the cost of regular, planned services.

When we work together at the front end, we can prevent minor maintenance costs, such as a $60 oil change, from escalating into expensive failures, including a $6,000 engine replacement. Working with knowledgeable third-party providers gives fleets access to specialized expertise and quicker interventions that minimize downtime and improve productivity.

Smart partnerships not only standardize maintenance practices, they save money on costs. Having everything consolidated onto a single billing makes an impact on the administrative side as well. It replaces hundreds of invoices with a single monthly one, saving thousands in soft costs.

Reliant experts help fleet managers be proactive in all compliance needs – from Department of Transportation inspections to maintaining OSHA requirements. They ensure compliance with regulatory requirements and reduce risk of liability exposures. This partnership facilitates better tracking of fuel usage and vehicle performance, identifying opportunities to improve fuel efficiency and cut costs effectively.

When selecting a fleet maintenance partner, consider the following criteria:

• Proven track record and industry reputation

• Transparent pricing and service guarantees

• Comprehensive service offerings, including emergency repairs and preventive maintenance

• Integration of technology for tracking and reporting

• Strong communication and easy accessibility

Long-term, these collaborative alliances foster a sense of trust and reliability. They particularly focus on the needs of the two-thirds of drivers who report feeling suspicious of repair shops. Over three quarters of repair professionals believe that good maintenance is cost-effective.

This collaborative approach keeps vehicles running smarter and longer, ultimately reducing the cost of vehicle ownership, including maintenance, across the board.

Conclusion

It’s not easy managing fleet maintenance costs, but the rewards are worth it. Prioritize preventive maintenance and proactive fleet care to help your vehicles stay in the best possible condition. Monitor cost per mile and utilize trusted fleet management software to keep costs in check. This is where technology comes into play. It allows you to budget more effectively, identify potential problems sooner, and reduce costs over time. Even small changes, such as getting the most out of the fuel you use or partnering with reliable maintenance providers, can lead to significant collective savings.

When you help ensure that these details are taken care of, it leads to fewer surprises and more opportunities to grow your business.

Considerations for improvement

Begin by taking a hard look at your existing processes and identifying areas to streamline. Those tools and that strategy is right at your fingertips—you just need to know how to do it.

Frequently Asked Questions

What is fleet maintenance cost?

Fleet maintenance cost is defined as the cost associated with maintaining a fleet of vehicles in an operational and safe condition. This spans general repairs and maintenance, routine servicing, parts replacement and labor costs. Keeping up with proper maintenance is an effective way to prevent costly downtime and premature vehicle replacement.

What factors influence fleet maintenance costs?

Fleet maintenance costs will vary depending on vehicle age and mileage, as well as type, driving conditions, and maintenance schedules. Lack of maintenance duplicates repair needs, while proactive maintenance cuts fleet costs. Beyond the vehicle purchase, fuel efficiency depends on driver habits which hasn’t been included in overall costs.

How do I calculate fleet maintenance cost per mile?

To determine cost per mile, you can simply take your sum of maintenance costs and divide it by the total mileage driven over that same time period. This is very useful for monitoring fleet efficiency and finding opportunities to save costs.

What are the benefits of proactive maintenance?

Proactive maintenance prevents more costly repairs down the line, reduces vehicle downtime, and extends vehicle life. It keeps their fleet reliable and safe, which ultimately reduces their overall operating costs. Routine service schedules help catch small issues before they turn into costly repairs.

How can fleet management software reduce maintenance costs?

Fleet management software helps track vehicle health, schedule regular maintenance, and monitor overall fleet expenses and usage. It automates preventive maintenance reminders, ensures regulatory compliance, identifies operational inefficiencies, and more, all saving fleets valuable time and money while improving operational performance overall.

What is the difference between fixed and variable maintenance costs?

Fixed costs, like insurance and licensing, remain constant. In comparison, variable costs are dependent on how much the vehicle is used, such as fuel and maintenance. Knowing these allows teetering budgets to be managed effectively and unforeseen expenses to be kept at bay.

How does optimizing fuel consumption help with fleet maintenance costs?

More fuel-efficient driving leads to less wear and tear on engines and other components, which minimizes maintenance requirements. Measures such as route optimization, maintaining proper tire pressure, and equipping drivers with training and resources have been shown to improve fuel economy and reduce repair expenses.

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Read Further on Vehicle Safety and Standards

Alberta Motor Vehicle Industry Council

National Institute for Automotive Service Excellence (ASE)

Transport Canada – Vehicle Safety