Fleet Economics:
Reducing Total Costs.
When it comes to managing fleets, the vehicle acquisition price tells only part of the story. The true cost of a vehicle, or an entire fleet extends far past the MSRP.
Our Total Cost of Ownership (TCO) model gives your organization a clear, comprehensive view of every expense across the full lifecycle of their fleet, empowering smarter decisions and long-term savings.
What the Total Cost of Ownership
Really Means for Fleets
Tracking the ongoing expenses of each vehicle is far from simple. Regardless of make or model, a vehicle’s TCO is shaped by a complex set of factors, including fixed expenses, operating costs, incidental events, lost productivity during downtime, depreciation, and resale value.
From Maintenance to Metrics
We Handle the Details
Some fixed costs, like purchase price and down payment, are easy to measure.
Others, such as fuel, maintenance, and future repair costs, are highly variable and harder to forecast. Without an automotive background, many fleet managers struggle to identify the right data points to track or how to translate that data into a true cost of ownership.
That’s where fleet management companies (FMCs), like us, bring unmatched value. We have access to data across all major OEMs, plus the expertise to analyze trends that directly impact the TCO, such as resale values, shifts in fuel prices, maintenance cost fluctuations, and the availability of new makes, models, and safety features.
The truth is, many organizations focus narrowly on acquisition and depreciation, while the majority of real fleet costs come from “hidden” or indirect factors.
Vehicle Capital Costs: Vehicle depreciation costs in comparison to similar age/mileage vehicles in secondary market (Auction).
Vehicle Operating Costs: Costs include: routine maintenance, repairs, towing
Total Vehicle Costs: Vehicle Capital Costs, Vehicle Operating Costs, Fuel, Insurance
Fleet Economics: Optimized Fleet Cycling with the right Financial Data
Tracking the ongoing expenses of each vehicle is far from simple. Regardless of make or model, a vehicle’s TCO is shaped by a complex set of factors, including fixed expenses, operating costs, incidental events, lost productivity during downtime, depreciation, and resale value.
WHAT FACTORS AFFECT YOUR FLEET
Resale Value
A nationwide network of trusted service providers and independent repair facilities, with over 70,000 locations to keep your fleet running smoothly.
Fuel Price Trends
We take responsibility for your fleet’s performance, ensuring reliable service, cost-effective solutions, and smooth operations every step of the way.
Rising Maintenance
We bring energy and enthusiasm to every partnership, driving innovative fleet solutions and delivering exceptional service for your organization.
Our Clear Formula for Your
Efficient Fleet Replacement Strategy
As a vehicle ages, the cost to maintain it increases over time. While the capital costs (or depreciation) associated with purchasing the vehicle decrease, the operating costs (maintenance, fuel expense, downtime, lost productivity) increase with age and mileage. Understanding these vehicle lifecycle costs is paramount to establishing the proper rotation cycle for each class of vehicle within a fleet.
The Hidden TCO Factors
UNDERLOOKED BOTTLENECKS IN FLEET MANAGEMENT
Unexpected Setbacks
Accidents, recalls, and unscheduled repairs don’t just impact the maintenance budget, they can affect resale values and optimal replacement cycles. Downtime from unexpected events also creates costly productivity losses. While no one can eliminate unplanned repairs entirely, a proactive maintenance program reduces downtime and keeps drivers on the road.
Driver Habits
Fuel waste, idling, inefficient routing, and unsafe driving behaviors all drive up costs. Telematics solutions allow agencies to monitor and address these factors, with data on mileage, speed, vehicle usage outside of work hours, and risky driving behaviors. These insights reduce fuel consumption, extend vehicle life, and improve safety, all critical components of lowering TCO.
Vehicle Optimization
The question every fleet manager must ask: How long should each vehicle remain in the fleet? Annual TCO analysis, supported by FMC data, identifies the optimal cycle for retaining or replacing each vehicle. Predictive analytics help agencies determine whether a vehicle is still cost-effective to operate or if cycling it out will save more in the long run.
Why Partner with D&M Fleet Services
Our organization combines deep industry expertise with comprehensive data insights to help companies fully understand and control their fleet costs. From acquisition through replacement, we provide the tools, reporting, and guidance to reduce risk, optimize fleet performance, and maximize your transportation budget.
