Vehicle Downtime Costs

The Cost of Vehicle Downtime

When a vehicle breaks down, the cost of downtime is far more than the cost of the inevitable repairs. To truly understand how unplanned vehicle downtime affects your bottom line, consider the following:

  • Revenue loss from a canceled order or appointment
  • Salary of the now idle driver who can’t do his or her job
  • Cost to rent a replacement vehicle during the downtime
  • Customer irritation due to missed appointments
  • Lost opportunity cost from irritated customers posting on Twitter about your business
  • Potential customers seeing your branded vehicle broken down on the side of the road
  • Missed incentives for being early or on-time
  • Late penalties
  • Extra manpower to move cargo to another vehicle
  • Replacement cost of ruined goods

Unplanned vehicle downtime is far too costly to ignore, yet fairly easy to keep in check. A good preventative maintenance program and fleet maintenance system can substantially reduce your risk.

About the Author

Tony Summerville

Tony is the CEO and founder of Fleetio and a passionate thought leader who lives at the intersection of transportation and technology. As a competitive swimmer growing up, he was once ranked 5th in the nation for his age group.

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