Repair and maintenance costs for trucks were at record highs in 2022, according to the American Transportation Research Institute’s An Operational Cost of Trucking: 2023 Update. Those costs were up 12% over 2021, averaging $0.196 per mile.
The increase was likely because fleets were operating older equipment as supply chain shortages interfered with the production and delivery of new trucks. At this point, it is unclear if fleets will again be on allocation when the 2024 order boards open; fleets will also likely have to continue operating some equipment beyond regular trade cycles.
See also: ATRI: Fleet costs jump 21.3%
Maintenance and repair costs can be difficult to predict, which makes budgeting problematic. We do know that in 2022, 76% of service shops raised their labor rates, according to Fullbay’s State of Heavy Duty Repair report. On average, shop rates were raised 34% to 44%.
And uncertainty about maintenance and repair costs is not the only uncertainty fleets face. The economy is also unsettled, with some economists predicting a recession in the next 12 months.
See also: Heavy-duty repair report shows shop revenue recovery, higher technician pay
Fleets that want to gain some control over these uncertainties should consider leasing as an option. Leasing helps you control costs—including maintenance and repair costs. A full-service lease covers maintenance and repair at a steady monthly cost. The fleet manager will know exactly how much they will pay for maintenance and repair over the lease term. In other words, maintenance and repair costs are fixed and guaranteed.
Lease terms vary but can range from 36 to 60 months and cover regular maintenance and repair, but not repairs needed because of an accident or negligent driver behavior.
A full-service lease is tailored to meet the needs of each fleet and is not a one-size-fits-all solution but instead considers the duty-cycle and application in which a truck will be operating. The lessor works with the fleet to determine proper lease payments that consider all those factors, as well as the proper maintenance schedules needed to keep the truck on the road.
Given the uncertainty—both in the economy and in truck production—now is an excellent time to look into leasing to manage expenses and bring some certainty to your operation.
Jane Clark is vice president of member services for NationaLease. In this position, she is focused on managing the member services operation as well as working to strengthen member relationships, reduce member costs, and improve collaboration within the NationaLease supporting groups. Prior to joining NationaLease, Clark served as area vice president for Randstad, one of the nation’s largest recruitment agencies, and before that, she served in management posts with QPS Cos., Pro Staff, and Manpower Inc.
