As remote work continues influencing travel patterns across the U.S., fleet managers might wonder if these changes have trickled into their operations. While remote work primarily affects personal commuting habits, a notable shift occurs in the broader vehicle market, including used fleet vehicles.
According to an April study by MIT, remote work has decreased overall vehicle miles traveled (VMT) in some regions. While the number of miles driven by private commuters has dropped, fleet vehicles continue to hit the road, fulfilling essential operations.
The study found that a 1% decrease in onsite workers results in a roughly 1% reduction in vehicle miles traveled, showing a clear shift in personal transportation behavior. This shift, however, varies widely by region — for example, the effect in Texas is four times greater than in New York.
What Does This Mean for Fleet Managers?
As a fleet manager, you may be thinking "remote work doesn't impact me!" And, although fleet vehicles remain critical on the road, changes in the personal vehicle market can influence used fleet vehicle dynamics.
With fewer miles driven by personal commuters, used vehicles with lower mileage are becoming more common. As competition in the resale market intensifies, fleet operators may find it harder to sell vehicles with higher miles, which is typical of fleet operations.
For context, the MIT study projects that a 10% decrease in onsite workers would lead to an annual 191.8 million metric ton reduction in vehicle-related CO2 emissions.
A Changing Resale Landscape
Understanding these trends is crucial for fleet managers planning their next round of vehicle disposals. Lower-mileage vehicles from the private sector may appeal more to buyers, potentially impacting resale values.
The study notes that the impact of remote work on vehicle miles varies by region, further complicating the used vehicle market dynamics.
“The impact of a 1% change in remote work on the reduction of vehicle miles traveled in New York state is only about one-quarter of that in Texas,” said study co-author Yunhan Zheng. This regional variability could mean that some areas will see more competition in used-vehicle sales than others.
Looking Forward Down the Road
While fleet operations stay steady, the resale market may become more competitive due to an influx of low-mileage personal vehicles. As the used-vehicle market evolves, fleet managers should consider adjusting their disposal strategies, such as emphasizing features beyond mileage or focusing on vehicle condition and reliability.
As MIT professor Jinhua Zhao, co-author of the study, explains, “We think this may have long-term implications,” signaling that these trends could affect the vehicle market for years.