Fleet Advantage Data Shows Operating Cost Savings for Private Fleets



Fleet Advantage released analysis that showed the operating and financial benefits of a lease versus ownership structure for private truck fleet operators, as well as for-hire carriers. The analysis illustrates a missed opportunity for cost savings when comparing a seven-year ownership of one truck to a four-year ownership and a four-year lease of two consecutive trucks.

*Denotes total savings when compared to a seven-year truck operating cycle.

The analysis shows that while there is a slightly higher investment level in lease payments over the seven-year period, that investment is overshadowed by much larger financial losses on the four-year and seven-year ownership in areas such as fuel expenditures, maintenance and repair, tires and financial losses resulting from disposal of the financed trucks.

In fact, the overall financial outlay shows that a four-year lease model would save approximately $27,893 per truck in comparison to the seven-year ownership model because of the aforementioned factors. The lease model even proves to be beneficial when compared to the four-year ownership model, showing savings of $12,710.

Many truck fleets used to operate under the mindset of driving the same truck as long as possible, but continual data analysis such as that employed by Fleet Advantage show that a more frequent upgrade to new equipment can save millions, especially when multiple trucks in a fleet are taken into consideration.

“A shorter lifecycle combined with a proper lease structure can positively impact a company’s overall financial performance through reduced costs and debt-to-equity ratios, improved cash flow and EBITDA performance, increasing the return on assets and preserving capital, in addition to many other significant areas such as driver retention and corporate image,” said Brian Holland, president and CFO of Fleet Advantage.


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Terry Mulreany
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