Latest Truck Lifecycle Data Index shows replacement cost savings

Fleet Advantage, a truck fleet business analytics, equipment financing, and lifecycle cost management company has released its latest 2018 Truck Lifecycle Data Index (TLDI) comparing all-in operating costs of early-model Class-8 trucks to 2019 model-year replacements. The TLDI serves to provide a snapshot of the cost savings involved, based on actual fleet truck utilization data, when replacing older trucks with newer, more efficient vehicles.

With diesel costs rising and fuel representing 61% of Total Cost of Ownership, transportation companies can realize a first-year savings of $26,687 when upgrading from a 2012 sleeper model-year truck to a 2019 model. This represents a 7.9% increase in savings compared with a similar analysis a year ago upgrading to a 2017 model when diesel prices registered $2.57. Based on data analytics from Fleet Advantage’s ATLAAS (Advanced Truck Lifecycle Administrative Analytics Software), these calculations remain a critical part of a fleet’s asset procurement strategy, which includes identifying the Tippingpoint – the point at which a truck reaches economic obsolescence, and costs more to operate than to replace with newer equipment.

Diesel prices and fuel economy play a critical role in the decision to replace an aging truck with a newer, more efficient unit, according to Fleet Advantage data. However, other factors are an important part of a fleet’s truck procurement strategy. Understanding the role maintenance and repair (M&R) costs have on an older truck are vital, as well as how the new corporate tax rate and FASB accounting standards affect truck acquisition and the bottom line. These are all major reasons why fleets today are changing from long-term ownership to shorter-term, innovative lease programs.

In addition to realizing significantly better cost savings from fuel economy gains, fleets will also achieve an estimated 18% reduction in CO2 emissions and 46% reduction in NOx output when upgrading from a 2012 model-year sleeper to a new 2019 unit.

“Truck acquisition strategies are undergoing a major evolution currently, as fleets are beginning to leverage data analytics to better understand actual truck utilization rates comparing older units with newer, more efficient ones,” said Jim Griffin, COO and CTO of Fleet Advantage. “Our ability to track accurate, live data from our clients’ trucks is a leading reason why so many fleets are now basing their truck procurement strategies off our ATLAAS platform, saving them millions on their bottom line.”