Cycling Vehicles by Analyzing Average Voucher Costs
The amount of decisions that must be made in order to properly manage a fleet of differing vehicle types can be extremely overwhelming. Each decision can have a huge impact on your bottom line, so it’s extremely important look at all facets of your potential options. One such consideration is the average maintenance voucher cost by vehicle segment at different mileage levels. The EMKAY analytics team utilized our fleet data in order to do just that. We’ll look at multiple segments in order to break down the average voucher costs over the life cycle of the vehicle, and in turn, determine when the ideal cycling time-frame would be.
As expected, when compared to the larger vehicle segments the sedan maintenance vouchers are a bit lower, ranging from $20-$50 on average throughout the life of the vehicle. Based on the upward trend in voucher costs, EMKAY recommends replacing these vehicles within the 70k-90k mileage range, as the average voucher cost increases by more than 17% after this point. This is in line with the current EMKAY portfolio, with sedans being in service for an average of 40 months and having 75k miles at the time of sale.
The replacement cycle is very clear within this segment. Vehicles should be replaced within the 70k-90k range. After the 90k mileage mark is surpassed, the average voucher cost increases by a massive 37% over the next 20k miles. The average cost of vouchers dips by 9% during the 80k-90k range before this huge jump occurs, so be sure to get replacement orders in during this time.
Full Size Vans
Full size vans typically remain in service much longer than sedans and SUVs, with the average months in service for the EMKAY portfolio being 84. However, replacement is suggested to take place within the 100k-110k range, which would almost always occur long before 84 MIS are reached. The average voucher jumps up 9.5% in the next 10k mile increment, so it’s important to cycle ahead of this jump. It’s even more vital to cycle prior to the 120k mileage point, as voucher cost jumps a huge 21% after this point.
Light Duty Trucks
The suggested light truck replacement parameter is similar to the full size van segment. Due to the fact that trucks also remain in service for a longer period of time, replacement will ideally occur between the 90k-100k mileage mark. Trucks typically remain in service longer than this, but 2016 remarketing statistics showed a downward trend in both mileage and months in service. If this trend continues through 2017, trucks in the EMKAY portfolio will be cycled more in line with our recommended time-frame, resulting in better results for our customers.
It’s important to consider each driver’s monthly mileage accumulation when planning the ordering schedule to ensure that the replacement vehicles are ordered in time to cycle the old unit out before the given mileage threshold is reached. As your fleet partner, EMKAY can help with this.
In order to get a customized analysis of your fleet vehicles, or to go over this study in greater detail, please contact your EMKAY Strategic Account Manager or reach out to us through our website contact page.