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Fleet FAQ? Fleet Management & Leasing

Q. What are the potential maintenance spend impacts of long vs. short cycling?

A. Proponents of longer cycles are quick to point out that a large maintenance spend is needed to overcome the lack of a lease payment. Fleets under this model realize that while the repair costs they incur are more expensive in nature, often take longer to complete, are less predictable in terms of cost, and more time is needed to manage the process, continuing to squeeze each vehicle for its maximum useful life can lead to the lower cost of ownership.

For fleets under shorter cycles, maintenance management can be less of an administrative burden with 80 to 90 percent of all repairs being routine oil changes, tire replacements, brake jobs, and general preventive services with minimal oversight and maximized driver uptime. At the same time, these fleets are incurring the lease payment for those vehicles continuously throughout the lifecycle, which shifts more of the fleet manager's time and attention to other areas in place of maintenance.

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Expert Bio

Answered by : Tom Coffey

Vice President

With over 30 years of experience Tom is an expert in both the fleet and equipment leasing industry. As a member of senior leadership he provides not only vision for the company, but also helps delivers best-in-class results across all operating areas. Tom is also instrumental in helping to elevate and advance the Merchant Fleet Management brand.

With over 30 years of experience Tom is an expert in both the fleet and equipment leasing industry. As a member of senior leadership he provides not only vision for the company, but also helps delivers best-in-class results across all operating areas. Tom is also instrumental in helping to elevate and advance the Merchant Fleet Management brand.

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Fleet FAQ? Fleet Management & Leasing, Questions?

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