2025 Fleet Cost per Mile & TCO: Government Fleets

Benchmark Snapshot: 2025 at a Glance

According to Fleetio’s 2025 Fleet Benchmark Report:

Metric	Government Fleets	Overall Fleet Average
Miles Driven	24,584	33,368
Cost per Mile (CPM)	$0.27	$0.24
Fuel CPM	$0.15	$0.14
Service CPM	$0.10	$0.07
Total Cost per Asset	$6,398.19	$10,168.71

These benchmarks come from anonymized data across tens of thousands of assets in public sector fleets. With lower total costs but higher CPM than average, municipal fleets are doing more with less — but there’s still room to improve.

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What’s the Total Cost of Ownership for Government Fleets?

The average total cost of ownership (TCO) for a government or municipal fleet asset in 2025 is $6,398.19, which is well below the fleet-wide average of $10,168.71.

This tells us that public sector fleets are relatively efficient on a per-vehicle basis — but lower spend doesn’t always mean lower strain. These fleets often manage aging vehicles, limited personnel, and decentralized oversight, which can drive up their cost per mile.

To reduce TCO while improving performance, government fleets should:

• Prioritize preventive maintenance across departments
• Monitor older assets for rising repair costs
• Centralize data to improve long-term capital planning

Tracking both CPM and TCO together helps municipalities better manage spending, avoid unnecessary repairs, and demonstrate accountability to stakeholders.

Why Is Government Fleet CPM Above Average?

Municipal and public sector fleets face unique operational constraints that affect both operating cost and ownership value:

• Older vehicles kept in service due to tight replacement cycles
• Limited staff or budget for consistent preventive maintenance
• Seasonal or specialized usage leading to lower utilization
• Siloed data and oversight across departments or locations

These challenges increase cost per mile and make total cost of ownership harder to track — but they also present opportunities to unlock efficiency with the right tools and visibility.

What’s Driving Up Your CPM or TCO?

If your cost per mile is above $0.27 or your assets are aging out of their value window, consider:

• Missed PM intervals due to disconnected service tracking
• High repair frequency on older, less reliable units
• Lack of data on how individual vehicles or departments are performing

Fleetio gives public agencies real-time insights into maintenance, cost, and utilization trends — across every division.

How to Lower Your Fleet’s Cost per Mile and TCO

With government fleet management software, municipal fleets can better manage both short-term operating expenses and long-term capital planning.

• Schedule and track preventive maintenance to reduce reactive repairs
• Identify underused or high-cost vehicles with asset-level reports
• Centralize data across departments to align strategy and spending
• Ensure inspection compliance with mobile forms and automated alerts

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