3 Min ReadMay 2, 2025

Deciding When to Replace Fleet Vehicles

Deciding When to Replace Fleet Vehicles.

It’s critical for a fleet operator to determine the right time to replace a vehicle. If they replace it too soon, they won’t get the most out of their investment but if they wait too long, they could lose money trying to maintain and repair an aging vehicle.

The company also needs to consider the loss of revenue should one of these assets break down. Given commercial trucks aren’t readily available and may require customization to meet a fleet company’s needs, a replacement could take some time and that downtime adds up in loss of revenue.

Of course, there’s no set fleet replacement strategy. It comes down to a number of factors, some of which vary by fleet. Here, we lay out some basic advice that dealers can relay to their customers to encourage asset evaluation and replacement.

Discuss the Importance of Analyzing Each Truck’s Total Cost of Ownership

Ultimately, the decision to replace an asset is an economic one, balancing the cost and value of maintaining the current asset with the expense of a new one.

Your customers are very likely laser focused on the costs to operate each vehicle in their fleet. Reinforce this total cost of ownership (TCO) mindset for each truck individually. Rather than assume all vehicles of a certain age, from a specific manufacturer, or with similar specs are performing the same. Even identical trucks can have different TCOs because of how or where they were driven and many other factors.

So, advise your fleet customers to start the asset replacement decision process by considering the monetary value of each truck as it stands. Have a researched figure on hand. Once they know this, you can lay out their financial options for them and offer a recommendation. Review with them how much — if anything — is still owed on the truck and, if they own it outright, how much you can offer them were they to trade it in.

Encourage Operators to Be on the Lookout for Spikes in Maintenance Costs

When a truck becomes problematic, that’s when the fleet operator is likely to think about replacement. Each vehicle should have a maintenance log that tracks how often it needs repairs as well as how much those repairs cost. It’s a good idea to encourage Fleet Managers to track not only the expenses for labor (both for in-house and outsourced work) and parts (including fluids) but also any expenses incurred due to shipment delays and roadside assistance calls when the truck broke down.

CDK Drive can produce reports that show the historic parts costs for each specific vehicle. These reports can arm dealers with the information that can help their customers decide on replacement versus continued repair.

Any truck that’s in the shop for a reason beyond preventative maintenance should be closely monitored as regular repairs can have a huge effect on its TCO.

Emphasize the Value of Upgrades

If your customer has made the call to replace a truck with something new, make sure they know about all the latest features on the market. Explain that optioning the latest technology will raise the purchase price of the vehicle, but it could pay for itself if it enhances operating efficiency, fuel economy, safety or driver satisfaction.

It’s a good idea to remind them that asset replacement should consider the truck’s TCO including its resale value. And a well-spec’d truck will likely do better on the secondary market when it comes time to sell.

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CDK Global Heavy Truck
By CDK Global Heavy Truck
Staff

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