Fleet FAQ? Fleet Management & Leasing

Q. What are the potential maintenance spend impacts of long vs. short cycling?

February 2, 2017

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A. Proponents of longer cycles are quick to point out that a large maintenance spend is needed to overcome the lack of a lease payment. Fleets under this model realize that while the repair costs they incur are more expensive in nature, often take longer to complete, are less predictable in terms of cost, and more time is needed to manage the process, continuing to squeeze each vehicle for its maximum useful life can lead to the lower cost of ownership.

For fleets under shorter cycles, maintenance management can be less of an administrative burden with 80 to 90 percent of all repairs being routine oil changes, tire replacements, brake jobs, and general preventive services with minimal oversight and maximized driver uptime. At the same time, these fleets are incurring the lease payment for those vehicles continuously throughout the lifecycle, which shifts more of the fleet manager's time and attention to other areas in place of maintenance.

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Author Bio

Jack Firriolo

sponsored by

Chief Operating Officer

Jack Firriolo is the Chief Operating Officer at Merchants Fleet Management. As a member of senior leadership Jack not only provides vision for the company, but also delivers best-in-class results across all operating areas. As a business industry expert Jack is relied on to oversee the completion of information technology projects, and to help grow the Merchants Fleet Management brand.

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The specific name given in the United Kingdom to closed end leases, i.e., leases with a fixed term (24 months, 36 months, etc.) wherein the lessor assumes most risks of ownership, notably depreciation and funding, defined levels of administration, and certain expenses of licensing or registration.

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