Replace or Reman? Evaluating Your Lifecycle Strategy

Introduction

The other day, I was talking to the Battalion Chief for our local fire department and I was specifically interested in his vehicle replacement strategy. I mean, fire and emergency apparatus are expensive and highly upfitted for their specific job, so it'd make sense that you want to get as much life out of them as possible.

And while we've typically focused on how preventive maintenance can help you extend the life of these assets, it's simply a matter of fact that at some point, you'll have to consider a replacement.

But this isn't unique to emergency fleets. Almost every fleet is dealing with aging vehicles, rising maintenance costs, unnecessary downtime.

And every fleet manager is trying to find that perfect moment in time to replace a vehicle where it doesn't start costing you unnecessarily, while also not retiring it with a lot of good life left in it.

When talking to Battalion Chief Hopper, he was walking me through how it makes more sense to throw their ambulances on a new chassis, rather than having to deal with the long wait times of procuring a new vehicle entirely.

Now, obviously an ambulance or a fire truck is a special kind of vehicle, but I was curious as to whether or not something similar existed for standard fleet assets. At that same time, I heard from Jonathan Carr with Vehicle Reman, letting me know that he'd love to join the show if we ever had a topic that made sense.

Jonathan

“There's a point when you're getting a repair done every six months, every quarter, whatever. And then there's a time when it starts happening where it's really affecting your business and affecting your revenue.”

Welcome to The Fleet Code, a podcast brought to you by Fleetio where we dive into the latest fleet industry trends, technologies and best practices.

My name is Zach Searcy and today, we're exploring if it makes more sense to remanufacture your fleet assets as an alternative to the standard replacement. Joining us is Jonathan Carr, the President of Vehicle Reman, to learn more about the timing of a reman, which fleets and assets might be a good fit, and of course, the cost savings potential.

Let's get into it.

The Decision: To Replace or to Reman?

Obviously, there are so many different factors you could consider when evaluating the different options. But we, a big advocate for data-driven decisions, are interested in three things in particular.

• Cost – What’s the financial impact of each option?
• Potential Downtime – How quickly can you get the vehicle back on the road?
• and Asset Lifecycle – How much usable life is left in the vehicle?

Before we break each of these down, let’s talk about timing. When should a fleet manager be actively evaluating these options? If you wait until a vehicle is already unreliable, your options are limited. But if you get ahead of the curve, you can make a more strategic decision.

Zach

"So a question that I have that I'm sure people listening are curious about is at what point should you be evaluating a vehicle for a reman? Are there like signs that you should be looking for or what does that look like?"

Jonathan

"I think the best one is just anecdotal almost, right? It's like when you get sick and tired of taking the truck to the shop over and over again, right? And so I would say as soon as that truck is underperforming, you know, to a significant degree on revenue productivity."

Zach

"Yeah. That feels similar. So something that we often preach to people is that idea of, uh, tracking your cost per mile, your TCO over time. You see a point typically in the fleet space – it's around that like 5 to 7 year mark where the cost per mile starts to increase and your goal as a fleet manager is typically like right before that increases to figure out what your plan is with the vehicle. And it sounds similar."

That 5 to 7-year window isn’t a hard and fast rule, but it’s a good benchmark. Some fleets stretch vehicles beyond that, while others—especially those running heavier-duty applications—might see those costs spike even earlier.

1. Cost

The first and most obvious factor is cost. But this isn’t just about sticker price—it’s about looking at the full financial picture.

Here are a few metrics to evaluate the costs:

• Total Cost of Ownership (TCO): What are you spending on maintenance, fuel, insurance, and repairs?
• Cost Per Mile (CPM): Is this vehicle becoming more expensive to operate as it ages?
• Resale vs. Reman Investment: Would putting $30K into a remanufacture be more cost-effective than selling and replacing the vehicle?

Jonathan

"If it's worth it too, right? Cause when you're fixing a little bit at a time, you're like, what's this going to look like over the next six months? But if we give you an estimate, you can say, oh. That's worth it."

That’s an important distinction. Even if you’re paying more in repairs, it’s not just the repair bill that matters—it’s also how much money the vehicle isn’t making while it’s in the shop.

2. Downtime

That brings us to downtime—something every fleet manager wants to minimize. Because whether you’re remanufacturing or replacing, the longer that asset is unavailable, the more it costs you.

Key Questions to Ask:

• How long does it take to source a new vehicle? (Supply chain delays could stretch this to months or even years.)
• What’s the wait time for remanufacturing?
• How much downtime are we already experiencing due to ongoing repairs?

Zach

"and then the other side of that is not just cost savings, but time savings. Could you walk me through the reman process and what people could expect from a timing perspective?"

Jonathan

"Yeah, absolutely. So a normal reman, once we pull it in the bay, is about two to three weeks is what it takes us."

"Cause man, these dealerships in Midland, like, you know, it can be months for a wait."

Zach

"Something that you just touched on is this idea of – at dealerships, there can be a backlog of fleet-ready vehicles, and I know that I think things have gotten better over the last several months, but there was a stretch there where you were talking a two year waiting period for even standard pickup trucks."

Jonathan

"Yeah, no, you're exactly right."

This is especially relevant in industries where supply chain delays have made new vehicles harder to come by. If your replacement plan involves waiting six to nine months for delivery, that’s a lot of lost productivity.

3. Asset Lifecycle

Finally, let’s talk about asset lifecycle. When considering a reman, you need to ask: Does this vehicle have enough life left in it to justify the investment?

What you should consider when evaluating lifecycle:

• Powertrain Health: Are the engine and transmission in good shape?
• Structural Integrity: Is the frame in solid condition, free of excessive rust or damage?
• Planned Utilization: Will this vehicle remain valuable to our fleet for another full lifecycle?

A good way to think about this is: If you remanufacture a vehicle today, will it realistically serve its full second lifecycle before major repairs creep in again? If the answer is no, replacement may be the better call.

Now, remanufacturing isn’t the right choice for every vehicle. But when the numbers line up, it can be a strategic alternative to replacing outright.

So when does reman actually make sense? And what types of vehicles benefit the most?

When Remanufacturing Makes Sense

By this point, we know that remanufacturing can be a viable alternative to buying new. But it’s not a one-size-fits-all solution.

Generally, remanufacturing makes the most sense for fleets that rely on high-cost, highly upfitted vehicles—especially those with long lead times for procurement. Think about industries like:

• Emergency services – Ambulances and fire trucks with specialized equipment.
• Oil & gas – Heavy-duty trucks with drilling and pipeline tools.
• Utilities & construction – Vehicles with lifts, cranes, and other expensive attachments.
• Home services – HVAC, plumbing, and electrical service vans.

Jonathan

"Yeah, the one that we've been talking to more lately is oil and gas. Okay. Because essentially with what we offer, the more equipment that you've got on the back of that thing, the more money we are going to save you. And those guys got a lot of equipment on the back of that thing, right?"

Zach

"The more upfitted your vehicle is, um, the more tailored it is to your operations, the more expensive it is to try to replace that vehicle."

Jonathan

"Yeah, correct. And then the other thing too is like. Even if they want to move the equipment, right? Like you've got these trucks with these cranes on them and it'll cost them 15, 20 grand just to swap over. And so you've got to add that onto the cost of a new vehicle and then tax and you get all this stuff and it gets expensive in a hurry."

Yes, you heard that right. For fleets in these industries, removing and reinstalling upfitted equipment isn’t just a hassle—it’s an additional $15,000 to $20,000 expense on top of the cost of a new truck.

So beyond just the cost of the vehicle itself, remanufacturing helps fleets avoid extra expenses and delays that come with sourcing and outfitting new assets.

From a financial standpoint, the savings can be significant. On average, remanufacturing costs about 50% of a new vehicle’s price, meaning fleets can stretch their budgets much further and a remanufactured vehicle can get a full reset on its service life.

Jonathan

"It's going to depend on driving habits and everything. But if you came in at a hundred and you're going to go do the same thing with that truck, you can get another hundred. Um, so we, we will just double life expectancy of that thing."

"One of the things that, that I think is just like a really good point or almost a visual. of what we do and how we help companies is our average savings on a truck is $35,000. Okay. And so you got a home service company with five vans, five trucks, whatever makes a big difference for them. Right. It makes a big difference for their bottom line."

And speaking of downtime, remanufacturing typically takes just a few weeks—compared to the months-long wait times many fleets face when trying to purchase new vehicles.

At the end of the day, remanufacturing is a strong fit for fleets with highly upfitted vehicles—where replacement costs and lead times are excessive.

For fleets with standard, non-upfitted assets, the decision is more case-by-case. If a vehicle has a well-maintained powertrain and a solid service history, reman may still be worth considering. But in cases where structural damage or extreme wear is present, replacement could be the better move.

But what about the cases where reman isn’t the right fit?

When Replacement Makes More Sense

While remanufacturing can be a great way to extend a vehicle’s life, it’s not always the right move. Some vehicles reach a point where keeping them on the road simply isn’t worth it.

So when does it make more sense to replace a vehicle rather than remanufacture it? There are two main reasons:

1. Severe structural damage – Issues like rust, frame deterioration, or other major integrity concerns.
2. Excessively high part costs – Some vehicles have replacement parts that are too expensive to justify a reman.

Zach

"So my curiosity is getting the best of me. Have you ever seen a vehicle come through that you were like, actually that one's a lost cause?"

Jonathan

"No, but part of that is diligence on the front end. The only thing that can make these things not work is too much rust on the body or too much rust on the frame."

Rust and frame damage are often deal-breakers because they compromise the structural integrity of the vehicle. No matter how much work you put into the engine and components, a failing frame isn’t safe or cost-effective to rebuild.

Another situation where replacement is the better option is when a vehicle’s parts are just too expensive compared to a standard reman.

Jonathan

"The most economical is going to be Ford, Chevy and then Dodge, right?"

Zach

"And that's just because of parts procurement, I'd guess?"

Jonathan

"Yeah. I mean, you look at like Isuzu or these Mercedes vans or even Toyotas, man. Like their parts are 3X, which you can get for a Ford. Yeah. So it's just like we almost just tell customers, it's not even worth it."

This is especially important for fleet managers who oversee a mix of vehicle types. If you’re running a fleet of work trucks from common manufacturers, reman is usually a cost-effective option. But for specialty imports or low-production models, the numbers might not add up.

Financial & Operational Drawbacks of Holding onto an Aging Asset

Beyond repair costs and part prices, fleet managers also need to evaluate how often a vehicle is breaking down—because every time that happens, it’s pulling resources away from operations.

Zach

"What are the numbers that somebody should be looking at when trying to decide if this is worth it for their vehicle that they're looking at?"

Jonathan

"Yeah, so I would say on the like data driven, you're looking at cost per mile, but then on the emotional side to, you know, when it's stressing you out, it's, it's when those shop visits, like are two things, the cost per mile, it makes the cost per mile go up. Or it makes your blood pressure go up, right?"

This is where data-driven decision-making is key. If a vehicle’s cost per mile keeps climbing and it’s spending more time in the shop than on the road, a reman won’t necessarily fix the underlying issue—it might just be delaying the inevitable.

Who Should Consider Replacement?

So which fleets are more likely to find replacement the better option? Generally speaking:

• Fleets with vehicles that have severe rust or frame damage
• Fleets running specialty imports with high-cost replacement parts
• Fleets dealing with ongoing mechanical failures that impact productivity

For standard fleet assets—like work trucks, vans, or pickups—it’s more of a case-by-case decision. Some vehicles may be excellent candidates for reman, while others might be at the end of their usable life.

At the end of the day, both options have their place—remanufacturing is a great way to extend asset life when the numbers make sense, and replacement is the better call when the vehicle is beyond saving.

Now, let’s talk about one more factor fleet managers might be thinking about: sustainability.

Sustainability and Fleet Strategy

More fleets are thinking about sustainability when making vehicle decisions. But while EV adoption is growing, it comes with challenges—higher upfront costs, charging infrastructure needs, and supply chain constraints.

Remanufacturing offers a different approach to sustainability, one that focuses on extending the life of existing assets rather than replacing them outright.

Jonathan

"So, um, we are actually greener than, uh, greener than electric at this point. And a lot of that has to do with infrastructure, but a lot of that has to do with conflict minerals, right? And so, I just think it's such a better alternative, and an alternative for now, right? Because we're pulling all these subsidies back."

This is an angle that isn’t discussed often. The environmental impact of EVs isn’t just about zero tailpipe emissions—it’s also about how those vehicles are built.

So while the long-term industry push is toward EVs, some fleets are taking a more measured approach—and that’s where remanufacturing comes in.

Jonathan

"Everybody with a fleet knows, you know, everybody wants them to, but they don't have the range. They take too long to charge. You know, they're just, the trucks are too heavy. Um, and so you've got all these issues and it's, hey guys, like, why don't we just keep doing exactly what we've been doing until EV kind of gets figured out, right?"

Reman as a Transitional Strategy for Fleets

Right now, a lot of fleet managers are uncertain about when to switch to EVs. Policies and incentives are changing, and range limitations and charging infrastructure are still major concerns for work vehicles.

Zach

"I think with that, like a lot of people are probably in this wait and see approach in terms of what the next four years holds. And so this as a process, at least in the interim to hold you over for the next four years and see what, what policies come out or anything like that. Like there is a great opportunity to use this as your, your plan while you put a plan in place, be it for EVs or just your fleet in general. Yeah."

Jonathan

"Yeah, or as like just another option, a second option, right? Yeah. Like, yeah, if we can do this and man, honestly, I think this is the way of the future. Um, even more so than EV because it just takes less resources and less infrastructure."

This makes remanufacturing a strong transitional strategy—letting fleets extend the life of existing vehicles while they plan for a future move to EVs or alternative fuels.

At the end of the day, sustainability isn’t just about buying new technology—it’s about making smarter choices with the assets you already have. So whether a fleet is preparing for EVs or just trying to operate more efficiently, remanufacturing is a tool that helps them control costs and reduce waste.

Key Takeaways

That's all I have for today's episode of The Fleet Code, so to wrap up, here are three key takeaways for fleet managers who are considering remanufacturing vs. replacement.

1. Use data to identify which assets are nearing their end of current life.

Jonathan

"Yeah, so I would say on the like data driven, you're looking at cost per mile, but then on the emotional side to, you know, when it's stressing you out, it's, it's when those shop visits, like are two things, the cost per mile, it makes the cost per mile go up. Or it makes your blood pressure go up, right?"

2. The more specialized your vehicles (and the harder it is to replace), the better a fit you might be for a reman.

Jonathan

"The one that we've been talking to more lately is oil and gas. Okay. Because essentially with what we offer, the more equipment that you've got on the back of that thing, the more money we are going to save you. And those guys got a lot of equipment on the back of that thing, right?"

Zach

"The more upfitted your vehicle is, um, the more tailored it is to your operations, the more expensive it is to try to replace that vehicle."

3. Think long-term and decide where remans could fit into your immediate–, future–, and even transitionary plans.

Zach

"And so this as a process, at least in the interim to hold you over for the next four years and see what, what policies come out or anything like that. Like there is a great opportunity to use this as your, your plan while you put a plan in place, be it for EVs or just your fleet in general. Yeah."

Jonathan

"Yeah, or as like just another option, a second option, right?"

I really appreciate Jonathan with Vehicle Reman for taking time to chat with us. I've included his website and contact information in the episode description if you have any other questions about the reman process.

As a reminder, The Fleet Code is brought to you by Fleetio. If you're looking for the best way to keep up with your operating costs and find the perfect moment to replace (or remanufacture) your fleet assets, Fleetio's fleet management system brings all of your fleet data into one system so you can set goals and surface any gaps immediately. You can learn more about Fleetio at fleetio.com - that's f-l-e-e-t-i-o.com.

I've also included a few resources around building a fleet vehicle replacement plan in the podcast description, so you can start mapping out the lifecycles of your fleet assets.

Make sure you subscribe to The Fleet Code on your podcast platform of choice to keep up with the latest tips and tricks for fleet managers. Leave a review or rating if you're into that kind of thing. If you have a topic that you'd like us to cover, send us an email to podcast@fleetio.com and let us know. Subscribe to our newsletter and follow at-fleetio on social media for even more fleet management best practices.

Guest

• Jonathan Carr, President, Vehicle Reman

Additional Links and Resources

• How to Calculate the Total Cost of Ownership for Your Fleet (blog)
• Developing a Fleet Vehicle Replacement Strategy (white paper)