When you are operating a fleet of trucks, you have to know when it is time to replace a truck. Not replacing it at the right time can cost you a great deal of time, money, and frustration. However, there are times when a visit to the repair shop is all that is needed to keep that truck running as expected.
In order to know when it is best to repair versus when it is time to replace, you should be keeping track of your cost per mile to operate each truck in the fleet. This is not necessarily difficult to figure out, but does require time and dedication. In the end, though, it will be well-worth it, and could save you tens of thousands of dollars per year, depending on the age of your fleet.
Your cost per mile is not limited to the fuel consumption, however that does figure into the equation. In addition to the amount spent on keeping the fuel tank full, you should look at other operational costs, such as maintenance, repair, tire replacement, etcetera. Even the small expenses just as oil changes, grease jobs, battery replacement, and paid inspections should be factored in.
Keeping track of each expense and which truck it relates is the first step. You must also figure out how long each repair will last and divide that cost by the number of days. Next, you will need to determine an average number of miles per day that the truck covers. Divide the average daily expenses by the average daily miles and you have an approximately cost per mile.
If you keep track of each truck in the fleet, you can begin to see just how much an older truck is costing you. Figure out the difference in cost per month. Compare that to the payments that would have to be made on a new truck and you’ll know which is going to be best for the bottom line.