Automotive Fleet

NOV 2013

Magazine for the car and truck fleet and leasing industry

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OPERATING COSTS 2013 OPERATING COSTS - FULL-SIZE VANS TOTAL UNITS: 127,429 <24,000 MILES CENTS DOLLARS PER PER MILE MONTH 0.278 $413.28 24,001-48,000 MILES CENTS DOLLARS PER PER MILE MONTH 0.248 $459.52 48,001-80,000 MILES CENTS DOLLARS PER PER MILE MONTH 0.265 $477.81 80,001-100,000 MILES CENTS DOLLARS PER PER MILE MONTH 0.251 $505.19 ward pressure on tire costs. "Te discontinuation of some GASOLINE tire models and introduction of seOIL 0.005 $7.53 0.007 $7.88 0.004 $7.75 0.005 $6.03 lect new models may drive up the TIRES 0.008 $14.37 0.011 $24.74 0.017 $34.02 0.018 $34.61 overall average cost per tire," said 0.018 $13.83 0.019 $38.41 0.029 $59.15 0.036 $75.46 Christensen. "Some commercial MAINTENANCE/REPAIR WARRANTY RECOVERY (0.0001) ($0.39) (0.0001) ($1.08) (0.0004) ($0.98) (0.0002) ($0.40) vans switching to these new mod0.309 $448.62 0.285 $529.47 0.315 $577.75 0.31 $620.89 els may see up to a 30-percent in- TOTAL OPERATING COSTS crease, due the tire's lower profle 2013 OPERATING COSTS - LIGHT TRUCKS and larger diameter wheel." <24,000 MILES 24,001-48,000 MILES 48,001-80,000 MILES 80,001-100,000 MILES Dave Lodding, executive vice TOTAL UNITS: CENTS DOLLARS CENTS DOLLARS CENTS DOLLARS CENTS DOLLARS president, feet management serPER PER PER PER PER PER PER PER 196,799 MILE MONTH MILE MONTH MILE MONTH MILE MONTH vices for Donlen, seconds this obGASOLINE 0.208 $289.30 0.229 $393.32 0.221 $436.20 0.217 $436.74 servation. OIL 0.006 $7.80 0.006 $10.24 0.006 $14.09 0.006 $10.39 "As new car models are introTIRES 0.009 $14.70 0.013 $30.96 0.019 $36.73 0.018 $36.83 duced with tire specifcations (as MAINTENANCE/REPAIR 0.013 $28.86 0.022 $41.83 0.025 $56.01 0.035 $79.33 they are now), pricing should reWARRANTY RECOVERY (0.0001) ($0.39) (0.0004) ($1.25) (0.0005) ($0.98) (0.0002) ($0.42) main the same. However, new 0.236 $340.27 0.270 $475.10 0.271 $542.05 0.276 $562.87 and/or unique tire sizes are typ- TOTAL OPERATING COSTS ically more expensive when frst introduced, so until the demand 2013 OPERATING COSTS - SPORT/UTILITY VEHICLES <24,000 MILES 24,001-48,000 MILES 48,001-80,000 MILES 80,001-100,000 MILES increases, and the competition in TOTAL UNITS: CENTS DOLLARS CENTS DOLLARS CENTS DOLLARS CENTS DOLLARS that size increases, the prices of PER PER PER PER PER PER PER PER 153,442 MILE MONTH MILE MONTH MILE MONTH MILE MONTH these tires will remain high," said GASOLINE 0.165 $295.63 0.166 $345.77 0.169 $346.40 0.171 $388.01 Lodding of Donlen. OIL 0.004 $7.85 0.006 $7.08 0.004 $10.08 0.004 $9.07 Limited availability of replaceTIRES 0.004 $6.08 0.013 $12.13 0.015 $23.89 0.015 $23.25 ment tires can result in increased downtime. MAINTENANCE/REPAIR 0.008 $15.51 0.011 $35.30 0.020 $52.75 0.038 $70.61 "Some feets are facing challeng- WARRANTY RECOVERY (0.0002) ($0.43) (0.0005) ($2.16) (0.0003) ($1.25) (0.0002) ($0.52) es with tire sizes unique to a single TOTAL OPERATING COSTS 0.181 $324.64 0.196 $398.12 0.208 $431.87 0.228 $490.42 tire manufacturer for the initial several years of the maintenance and repair of feet units has geted maintenance payment allows a pretire introduction. Limited decreased. Tis has been the trend over dictable budget and protection from inavailability of these tires the past few years, whereas repair volumes fationary price increases," said Blezien of may result in downtime have remained fat or decreased. We attriLeasePlan USA. delays at time of replacebute this to the OEMs' abilities to continuHowever, the increased number of recalls, ment," said Christensen of ously improve vehicle quality. When repair especially among high-volume feet vehiLODDING GE Capital Fleet Services. incidents decrease, feet drivers' productivcles, has led to some driver dissatisfaction. ity increases," said Piscopo of ARI. "A greater feet awareness on the impact Maintenance & Repair Cost Trends Another factor infuencing maintenance of OEM recalls has led to some feet driver Data from AF's 2013 operating cost surexpenses has been the bundling of services complaints when experiencing parts delays, vey indicates that maintenance and repair at discounted rates. rental costs, and loss of productivity," said costs were fat in 2013. "Routine maintenance costs have been Christensen of GE Capital Fleet Services. "Overall costs have maintained fairly levreduced by longer maintenance intervals el prices, labor rates have become more of a and some vendors are 'bundling' servicOther Factors Impacting focus, and services that some feets consides. As an example, many national account Maintenance & Repair Costs er 'extras' such as transmission and coolant One factor putting upward pressure on providers have included free tire rotations fushes are being pushed out to higher milemaintenance costs has been increased vewith their oil change services," said Ciccaage levels," said Fontana of Emkay. hicle complexity. relli of Donlen. Maintenance costs have decreased across Another factor has been budgeting set at "As service providers strive to stay curthe board with the primary factor being inmonthly maintenance payments. rent with new technologies, it has become creased overall vehicle quality. "More feets recognize the value in programs increasingly difcult to diagnose and repair that ofer monthly budgeted maintenance complex failures, which, in turn, increases "Across all vehicle types and most mileage bands, the expenses related to the payments over the life of the lease. Te budlabor costs and downtime. Complicated ar26 AUTOMOTIVE FLEET I NOVEMBER 2013

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