If your fleet follows a lifecycle policy that was originally created to optimize cost efficiency, it could be beneficial to re-evaluate and examine long-term costs. Extending your truck’s lifecycle can save in the short-term but can risk making a cumulative impact on the fleet’s operating expenses down the road.
According to Automotive Fleet, approximately 35 percent of a truck’s total lifecycle cost happens during the last 15 percent of life. Fleet owners should try to decrease this period, not extend it.
Downtime is directly related to the severity of the maintenance issue. When downtime occurs due to unplanned engine or equipment repairs, it jeopardizes a company’s ability to effectively support customers and generate revenue. Critical component failures occur more often with older trucks, resulting in higher downtime costs per incident because of the complexity of the repair and longer turnaround times required.
There are a couple of ways to approach a more flexible replacement guideline, including:
- Extend a replacement cycle as a short-term solution to make up for a reduction in a capital expenditure budget
- Shorten service life to shorter lifecycle trucks to take advantage of a strong resale market
Changing your approach can be financially prudent. Bottom line, it may be advantageous to base a truck’s lifecycle on market conditions.
Talk to your local MHC dealer today and learn more about optimizing your truck fleet!