Savings from buying new trucks have increased, according to Fleet Advantage data

Savings from buying new trucks have increased, according to Fleet Advantage data

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Fleet Advantage has released its 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, according to the TLDI. This represents a 15.5% 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 Advanced Truck Lifecycle Administrative Analytics Software (ATLAAS), these calculations remain a critical part of a fleet’s asset procurement strategy, which includes identifying the “Tipping point” – the point at which a truck reaches economic obsolescence, and costs more to operate than to replace with newer equipment.

Sleeper-“All In” Cost Comparison

Model Year

Approximate      All In Cost

2019 Model Year                 All in Cost

Savings

2019 MY Year One Fuel Cost

MY Fuel Expense

Fuel Savings

Fuel/CO2Saved

2012

$92,606

$65,919

$26,687

$41,125

$50,076

$8,951

18%

2013

$87,977

$65,919

$22,058

$41,125

$48,886

$7,761

16%

2014

$82,215

$65,919

$16,296

$41,125

$47,681

$6,556

14%

2015

$80,953

$65,919

$15,034

$41,125

$46,469

$5,344

12%

2016

$76,433

$65,919

$10,514

$41,125

$45,379

$4,254

9%

2017

$70,493

$65,919

$4,574

$41,125

$44,280

$3,155

7%

2018

$69,391

$65,919

$3,472

$41,125

$43,176

$2,051

5%

 

Diesel prices and fuel economy play a critical role in the decision to replace an aging truck with a newer, more efficient unit. 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.

Emissions Scorecard

2012 MY SLEEPER VS 2019 MY Sleeper

2012 Model Year
6.57 MPG

2019 Model Year
8.00 MPG

REDUCTION (METRIC TONS)

REDUCTION (%)

CO2

153 MTs

126 MTs

27

18%

PM

0.003 MTs

0.001 MTs

0.002

78%

NOX

0.103 MTs

0.056 MTs

0.047

46%

FUEL

15,221 GAL

12,500 GAL

2,271

18%

“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, chief operating officer and chief technology officer 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.”

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