It turns out that consumers are not the only ones holding onto their vehicles longer. 30 percent of fleet managers also plan to extend the lifecycle of their vehicles, according to an EVAI survey referenced in this Digital Dealer article. The survey attributes this to the potential cost increases from import tariffs, however, vehicle prices and interest rates have been climbing for a while (pre-tariffs), dating back to the COVID pandemic where the supply chain became a major issue for acquisition. According to this Automotive Fleet article, fleet managers have been extending the use of their fleet vehicles for a few years now.
In a time where budgets are tight, rather than stretching fleet budgets thin by replacing vehicles at a certain fixed mileage or age milestone (regardless of vehicle condition), fleet managers can better maximize the value of each asset by implementing a “fleet preservation” strategy coupled with advanced fleet management tools and telematics data.
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