Work Truck Logo
MenuMENU
SearchSEARCH

Medium-Duty Truck Operating Costs Flat in 2004 Calendar year

Continued use of recapped tires and lengthened PM intervals have kept medium-duty truck operating costs relatively flat for utility/railroad, delivery, and service fleets in 2004.

by Chad Simon
October 1, 2005
Medium-Duty Truck Operating Costs Flat in 2004 Calendar year

 

Photo: Bobit

4 min to read


Despite skyrocketing fuel prices, medium-duty truck operating costs for utility/railroad, delivery, and service company fleets were relatively flat in the 2004 calendar-year, according to an annual operating costs survey conducted by Automotive Fleet and survey partner GE Commercial Finance Fleet Services, a fleet management company based in Eden Prairie, Minn.

Ad Loading...

Key reasons for this stability include the continued use of recapped tires and lengthened preventive maintenance (PM) intervals.

Ad Loading...

The average vehicle lifecycle for utility/railroad is 95 months/101,000 miles; delivery fleets is 90 months/186,000 miles; and service fleets is 109 months/101,000 miles.

The study tracked operating cost data for 35,000 medium-duty trucks from January through December 2004. Costs were broken out in 40,000-mile intervals up to 240,000-plus miles and analyzed by industry segment. Operating cost data in the accompanying charts does not include expenses associated with upfitted auxiliary or hydraulic equipment.

“The data is restricted to cab and chassis expenses involving preventive maintenance, tires, vehicle repairs, and fuel,” said Mark Lueck, customer data analyst for GE Commercial Finance Fleet Services, who developed the program to track the expenses for this survey. Expenses were tracked by mileage instead of engine hours.

Recapping Trend Continues

“Fleet managers are paying closer attention to tire prices and reviewing whether to stay in the same midline price or step down from a price standpoint as they get closer to tire replacement,” said Dan Kratz, truck operations manager, GE Commercial Finance Fleet Services.

In addition, more fleets are using recapped tires, which provide favorable mileage and wear.

Ad Loading...

Over the past 12-18 months, tire manufacturers have become more active in providing information to customers regarding the reasons truck tires fail, for instance, insufficient tread life. Technical reports generated by manufacturers have helped fleets manage tire expenses.

Fleets Lengthen PM Intervals

“As mileage increased, costs decreased in some areas due, in part, to fleets deferring larger expenses and taking the vehicle off the road. The current trend is to simplify and extend PM expenses,” said Dave Mellon, lead customer solutions advisor, GE Commercial Finance Fleet Services.

“Fleet managers are closely managing repairs to ensure they are necessary and properly budgeted. Fleet managers are leveraging tools such as our Maintenance Alerts feature to select from a menu of repair options for a vehicle in the shop. For example, if the repairs total $2,000, they may only select the repairs to keep the vehicle safe and defer the rest of the maintenance. This is particularly important for those vehicles that are scheduled to be replaced,” said Kratz.

“We are seeing more fleets evaluating the use of vendors that offer set pricing nationally for PMs, even though this could increase downtime by limiting the locations available for service,” said Tim Derochie, maintenance product manager, GE Commercial Finance Fleet Services.

“Another trend for fleets with vehicles approaching the 10,001 lbs. GVW commercial truck rating, is to write specifications with lighter duty components that keep their units out of the commercial vehicle category. By doing this, they lower the price of the truck, increase the pool of available drivers, and avoid certain Department of Transportation (DOT) compliance regulations,” said Kratz.

Ad Loading...

2007 Diesel Engine Regulations Change Purchasing Trends

The upcoming 2007 diesel engine regulations have changed customers’ purchasing plans.

“The emission requirements for 2007 diesel engines call for the new engines to have particulate filters to control emissions. Fleets may be reluctant to go into first-year engines, particularly these engines because they’re going to be changed so drastically,” said Kratz. “As a result, fleets are shortening the lifecycle of the units currently in their fleet and buying more of the 2006 models to push out their transition to engines that have higher emissions controls.”

“The Environmental Protection Agency (EPA) Clean Diesel Campaign requires the use of ultra-low sulfur diesel fuels for highway-use vehicles, starting in 2006. The additional cost to fleets, for these new blends, is estimated by the EPA to be 4.5 to 5 cents per gallon of diesel fuel,” said Kratz. “Also, look for repairs and maintenance costs to increase due to additional training of technicians and new diagnostic equipment.”

Increasing Fuel Prices

Next to tires and PM, escalating fuel prices are a significant factor in customers' efforts to reduce operating expenses.

Fuel prices have also resulted in surcharges for roadside service calls by vendors covering their increased fuel expenses. 

Originally posted on Automotive Fleet

Subscribe to Our Newsletter

More Vehicle Research

A lot of several vehicles, with the central vehicle being a medium-duty work truck with several workers inspecting it.
SponsoredAugust 1, 2026

Electrification Incentives: The Acquisition Windfall Fleets Can't Miss

Discover how fleets can use tax credits, grants, rebates, and vouchers to dramatically reduce electric truck and charging infrastructure costs—before today’s funding disappears.

Read More →
A shot of a Volvo electric vehicle with a man charging it in front of a residence.
SponsoredAugust 1, 2026

Top 50 Executive Fleets

It is that time of year again! Time for the 2026 list of the Top 50 Executive Fleets, presented by Automotive Fleet and Volvo as part of its annual Fleet 500. Download now to see this year's list of companies!

Read More →
Group of Western Star Star Nation participants posing in front of heavy-duty trucks at a quarry, with the text “Inside the Western Star Star Nation Experience.”
Vehicle Researchby Lauren FletcherJuly 31, 2026

Back at Star Nation for a Closer Look at Western Star Trucks and the People Behind Them

Work Truck returned to Western Star’s Star Nation Experience for another hands-on look at the trucks, technology, and operator community behind the brand.

Read More →
Ad Loading...
Commercial Fleet
SponsoredJuly 23, 2026

The Top 300 Commercial Fleets

The Top 300 Commercial Fleets: See the List

Read More →
Three olive-drab Mack Defense heavy-duty tactical dump trucks drive in convoy on a roadway beneath cloudy skies, promoting delivery of 115 HDTs for the U.S. National Guard.

Mack Defense Receives Additional Order for 115 Heavy Dump Trucks Under U.S. Army’s M917A3 Program

The latest order of 115 Heavy Dump Trucks (HDTs) from Mack Defense for the National Guard is part of the $47-million order from the U.S. Army approved in the 2026 National Defense Appropriations Act.

Read More →
Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
Ad Loading...
Four-photo collage showing a white RIZON medium-duty truck with a utility flatbed, highlighting exterior storage compartments, open tool cabinets, and a spacious diamond-plate cargo bed designed for commercial work applications.

Rizon Introduces Service Combo Body, Increases Electric Truck Applications

Rizon now offers a combo service body that combines lockable storage and a spacious cargo bed in a single zero-emission vehicle. The body supports unique options including cranes, ladder racks, generators, lift gates, and work lighting for a wide range of vocational applications.

Read More →
FUSO Academy training classroom featuring workstations, diagnostic equipment, and electronics training benches, with a FUSO Academy logo highlighting the company's technical training facility.

MFTBC Establishes FUSO Academy Dubai Training Center to Strengthen Network Capabilities in Middle East & Africa

Mitsubishi Fuso Truck and Bus Corporation’s new FUSO Academy Dubai Training Center will support technical and non-technical capability development. It features enhanced training infrastructure to improve service quality, uptime, and readiness for advanced vehicle technologies.

Read More →
Paccar engine displayed alongside Kenworth and Peterbilt logos and a DEF pump sign, illustrating a software update addressing diesel exhaust fluid (DEF) inducement strategies for select heavy-duty trucks.

Paccar Updates MX-11 and MX-13 Engine Software to Enhance Customer Operations

Kenworth Truck Company and Peterbilt Motors Company will update software for vehicles equipped with Paccar MX-11 and Paccar MX-13 engines to ensure they comply with EPA guidance on diesel exhaust fluid inducements.

Read More →
Ad Loading...
GM Fleet presentation slide highlighting strong fleet sales growth alongside a Chevrolet Silverado. Key metrics include increased truck demand, record pickup sales, higher government sales, and growth in OnStar Fleet subscriptions.
Vehicle Researchby StaffJuly 8, 2026

GM #1 in U.S. Sales for the Second Quarter of 2026

General Motors said it was America’s #1 automaker in U.S. sales for the second quarter of 2026 with total sales of 714,896 vehicles, down 4.2%. GM led in full-size pickup and large SUV sales and reported growth in fleet sales.

Read More →