A truck’s total cost of ownership (TCO) covers a specific range of expense variables, regardless of the make or model. The four lifecycle categories that influence TCO are fixed costs, operating expenses, incidental costs, and depreciation/resale value. A key factor that drives these lifecycle categories is a vehicle’s service life.
Long-Term Impact of Longer Truck Replacement Cycles
The more expensive the asset, the longer it is kept in service; however, the need for short-term cost savings prompts some fleets to even further extend cycling parameters and defer replacements. But, what are the consequences?