Among the takeaways from Fleet Advantage’s latest Annual Industry Pulse Survey, is more fleets are acquiring new trucks by leasing and shortening their asset lifecycles before replacement – as compared to the previous year’s data of an average lifecycle of seven years.
Fleet Advantage (www.fleetadvantage.com) is a leading innovator in truck fleet business analytics, equipment financing and lifecycle cost management. Its survey takes an annual look at practices and insights from truck fleet operators and for-hire carriers.
Lifecycles
In 2015, 22 percent of fleet respondents said they were operating their trucks on a three- to five-year lifecycle. This increased to 44 percent in 2016.
The percentage of fleets operating trucks on a six- to eight-year lifecycle fell from 44 percent to 32 percent.
Leasing
The survey found that leasing new equipment is on the rise.
- In 2015, 20 percent said they lease financed their trucks. In 2016, the number more than doubled to 48 percent.
- Purchase finance decreased slightly, from 26 percent to 24 percent.
- Full-service leasing declined from 18 percent to just 4 percent.
- Cash truck purchases dropped as well; 36 percent to 24 percent last year.
Maintenance Concerns
Per the 2016 survey, 24 percent said their fleets drive an average of 120,000 annual miles or more; 68 percent said at least 80,000. This was an increase from 2015 numbers that showed 18 percent for 120,000; 50 percent for 80,000).
As such, the study found that maintenance and repair costs are also a much greater concern. In 2016, 40 percent of participants listed maintenance and repair as the largest motivators for truck replacement next to improved fuel economy, versus just 26 percent in 2015.
Equipment Disposal
In 2015, 22 percent of the fleets traded in old equipment; 40 percent in 2016, survey data showed. Wholesaling also increased, from 28 percent to 38 percent.
