Fleet News

ARI cuts maintenance costs for fleets

Fleet news logo

Effective driver and tyre management is the key to keeping repair bills in check while improving engine technology and longer service intervals debunk the myth that routine vehicle maintenance costs are rising, according to ARI.

New data from the company, highlighted at the Fleet News Congress reveals in real terms that vehicle maintenance costs are reducing from year to year, yet repair costs for some fleets are rising because of driver abuse and ‘unfair’ wear and tear.

Thirty years ago the Vauxhall Cavalier 1.6 S five-door - a fleet favourite at the time - cost £6,932. Over a three-year/60,000 mile contract, maintenance cost £1,620 (£45 per month), equivalent to 23% of the purchase price.

Today, Vauxhall’s equivalent car, a £16,200 Insignia 1.4 T SE hatchback, over an identical operating cycle, is calculated to have maintenance costs of £1,910 (£53 per month). That is equivalent to 8% of the purchase price.

Taking inflation at 2.5% per annum into account, the Cavalier’s maintenance costs at 2012 prices are £114 per month - more than double the cost of the Insignia’s.

In 1982, however, tyres accounted for approximately 15% of total vehicle maintenance spend and today that has increased to 40%.

ARI Fleet UK chairman Geoffrey Bray said: “A modern vehicle is a major capital investment and is crammed with technology designed to improve performance, reduce maintenance costs and, via dashboard reminders, inform drivers when checks need to be undertaken.

“Vehicles are highly technical and efficient machines. But if they are not maintained in accordance with manufacturer recommendations and drivers ignore dashboard warning lights in relation to topping up fluid levels or service remainders then fleets pay the price.”

“Vehicle maintenance is not optional. It is an absolute essential to meet warranty terms; from a vehicle performance/efficiency standpoint; the corporate requirement to meet at-work driving duty of care regulations and best practice; to maintain an employer’s image; and to safeguard a model’s residual value.

“Our data reveals that contrary to widespread belief, routine maintenance costs are not increasing, but rather have seen a significant reduction over the past 30 years."

Yet, some fleets are seeing maintenance costs rise and that, says Mr Bray, who has more than 25 years of fleet experience as the founder of Fleet Support Group, which is now known as ARI Fleet UK, is due to a failure by some fleets to manage their drivers effectively.

“Drivers are the biggest influence on maintenance costs. Manage drivers effectively and unforeseen maintenance costs resulting from a failure to care for a valuable piece of equipment will reduce.

“Tyre replacement, for example, costs fleets a fortune, but frequently that is down to the driver not regularly checking pressure levels and for signs of uneven tread wear.”

“Fleet managers must adopt a zero tolerance approach to vehicle maintenance. That means managing drivers, changing attitudes and the result will be reduced maintenance bills.”

Click here for service, maintenance & repair best practice and procurement insight

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee