This content is sponsored by ARI.
If you follow age-mileage parameters for scheduling vehicle replacements, your capital funding requests for new vehicles likely spike and dip year to year. It’s frustrating for your finance team to project for such inconsistencies, and there’ve probably been years when you didn’t get all the money you asked for.
Then you get stuck with old and worn vehicles that are overdue for replacement. While you wait for the money to come through for new vehicles, the old ones are creating higher expenses, lowering productivity and setting a bad brand image for your company.
HAS A PARTIALLY APPROVED CAP REQUEST HIT YOU WITH THESE IMPACTS?
- Unplanned maintenance cuts into your company’s ability to service customers. Every minute your vehicles are out for repairs, customers may be looking elsewhere for support.
- Maintenance costs
- The time has run out on running vehicles until the cost of repairs exceeds the value of the vehicle. Major component failures not only create downtime and excessive repair costs, they reduce the vehicle’s resale value.
- Driver productivity
- Even if you have a replacement vehicle for the driver to use while their regular vehicle is being repaired, the driver still loses work time due to the transition. This is especially true when it’s the driver who is dropping off and picking up the vehicle from the repair shop.
- Rental expenses
- When using rental vehicles, you’re essentially paying for two vehicles to do one job – maintenance costs to repair one vehicle plus the expense of a rental vehicle to keep your driver on the road.
You’re challenged to prioritize replacements and develop accurate and consistent capital acquisition modeling. We have the solution. Click here for more information about capital forecasting, including videos, white papers, and customer stories. (fleetisaninvestment.ca)
Inconsistent replacement modeling leads to erratic capital funding requests that may or may not be granted.
IT’S TIME YOUR FLEET PAID OFF
You CAN replace the most critical vehicles in your fleet in a timely manner. With the right tools and strategic partner, you can create a fleet that is no longer simply a cost to your organization but rather a strategic asset that delivers value.