In 2019, the average age of civilian fleet assets in the government space was 6.7 years – a sign that government fleets are having to stretch the lives of their vehicles longer than privately-operated fleet assets. How can government fleets properly maintain their aging assets amidst low funding?
The Value of Proactive Fleet Maintenance
First, government fleets should proactively maintain their vehicles. As vehicles age, more maintenance issues arise, and this translates to increased vehicle downtime and a greater strain on government funding. Government vehicle downtime is a monetary and safety issue, especially if a police vehicle or fire truck cannot respond to an emergency.
The table below shows proactive maintenance costs for common vehicle issues. Most of these issues cost $100 or less to repair. This is significantly less expensive than vehicle downtime, which can cost close to $800 per vehicle per day.
Investing in your vehicles before experiencing issues can extend vehicle lifetimes, save money and improve safety.
4 Strategies to Replace Government Vehicles without Breaking the Bank
1. Replace vehicles incrementally
Fleet vehicle replacement is a significant capital investment and government fleets simply do not have the means to replace multiple assets at once. Given budget limitations, vehicles should be prioritized and replaced overtime.
When trying to determine which vehicles to replace next, consider these factors:
- Vehicle age
- Number of miles
- Percentage of availability and utilization
- Frequency of breakdown
- Average cost of repair
- Importance to the fleet
- Vehicle status
2. Sell underutilized vehicles
Constantly keep tabs on your fleet inventory to know which assets are sufficiently utilized and identify which are gathering dust. If you discover underutilized assets, sell them. By selling the asset, you will reduce maintenance costs and can invest the capital into new assets or other areas needed. Imagine purchasing new fleet vehicles with readily available dollars rather than digging through the budget trying to find available government funds.
Pro-tip
Keep a close eye on your operating costs to identify and sell underutilized assets. This will reduce maintenance costs and provide capital to invest in new assets or other areas needed.
3. Refurbish your vehicles
Fleet operations dollars go a long way when purchasing a refurbished vehicle rather than a new vehicle. Refurbished vehicles can cost less than half the price of a new vehicle and can double the vehicle lifetime.
Example: In 2012, the City of Phoenix refurbished ten garbage trucks and saved $1 million!
Pro-tip
Refurbished vehicles can cost less than half the price of a new vehicle and can double the vehicle lifetime.
4. Switch to closed-end leases
Fleet leasing enables you to avoid funding the high upfront capital necessary for purchasing new vehicles. Closed-end leasing has no set monthly fees, which is helpful when planning an annual governmental budget. Also, the leases pose no residual risk to the lessee at the predetermined term end.
With a decreasing budget and aging vehicles, it is important for government fleets to be proactive and make smart monetary decisions based on data. Remain proactive in your vehicle maintenance and be sure to consider your options when the time comes to replace fleet vehicles.
Learn how Fleetio helps government fleets automate the maintenance process and identify cost-savings opportunities in your fleet.
