The recent surge in inflation has led fleet managers and executives to examine how inflationary pressures are affecting fleet expenses. Leveraging both internal and external resources, Holman’s Business Intelligence & Analytics (BI&A) team has identified key pain points in the areas of acquisition and operating costs. This analysis highlights three of the largest fleet expense categories – depreciation, fuel, and maintenance – and how inflation is driving costs higher in these areas.
Key factors identified as causes for rising fleet costs include:
- Monthly lease payments increasing by 20% from 2020 to 2022
- Pandemic-related OEM factory shutdowns
- Computer chip and raw material shortages
- Increasing cost of funds
- Cost of fuel increasing over 100% since Q1 2021
- Maintenance parts prices increasing 20% and labor costs increasing 13% since 2020
- Extended vehicle lifecycles
Given these new challenges, it is vital that fleet managers understand the causes and budget accordingly.
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