The Real Cost of Deferred Maintenance: Why Cutting Corners Costs More

The transportation sector is rife with the temptation to defer maintenance. Tight deadlines, limited budgets, falling behind on planned maintenance, pushing back a routine oil change, or not responding to a check engine light seem justifiable for the time being. However, Kooner Fleet Management Solutions has seen small decisions become the genesis of much larger expenses and catastrophes.

The Hidden Expense of Procrastination on Repairs

The moment a fleet manager chooses to defer maintenance or repairs, they are not saving money. They are simply deferring the payment and, even worse, incurring interest through compounded issues. According to the American Transportation Research Institute (ATRI) deferred maintenance can inflate repair costs by up to four times, with fleets spending an average of $0.202 per mile on repairs in 2023—a 3.1% increase from the prior year—due to neglected issues like brake pad replacements escalating into rotor and caliper damage.

Think about this, you could replace brake pads today for a couple of hundred bucks. However, when you hear them squealing, ignoring the sound puts you in a position where you damage rotors, calipers, and potentially dangerous status requiring emergency roadside truck assistance. In addition, emergency roadside costs range from 3-4 times more than the scheduled maintenance that you postponed.

The Ripple Effect Across Your Operation

Procrastinating on repairs creates company-wide issues beyond vehicle problems. It leads to unexpected failures, fuel inefficiency, and accelerated wear and tear. Therefore, consistent maintenance is crucial for reliability and cost-effectiveness.

Unexpected Downtime

When a truck breaks down midroute, you are not only out the cost of the repairs, but all the associated revenue lost, customer expectations not met, and scrambling to find a replacement. These breakdowns also contribute to significant industry-wide costs, with the American Transportation Research Institute’s 2022 Cost of Congestion study estimating that unexpected vehicle failures due to deferred maintenance result in $108.8 billion in annual congestion costs, averaging $7,588 per registered combination truck.

Higher Fuel Consumption

Poorly maintained vehicles burn more fuel. The U.S. Department of Energy reports that poorly maintained vehicles can suffer up to a 15% reduction in fuel economy, significantly increasing operational costs for fleets. For a truck averaging 6.65 miles per gallon, this could translate to an additional $0.30 per mile in fuel costs at $4 per gallon—a serious blow to your bottom line when overseeing a fleet.

Reduced Asset Value

Regular maintenance to vehicles extends their life. Neglect increases depreciation. The cycle for replacing an asset is shortened, so you are forced to make capital expenditures years earlier than warranted.

Increased Insurance premiums

With breakdowns, and accidents attributed to poor maintenance, comes more claims to the insurance company, which eventually culminate into an increased premium and cost to your organization.

The Professional Approach to Fleet Management Solutions

Innovative organizations are instituting proactive maintenance plans that consider vehicles as accretive assets. This change in culture also considers maintenance as an investment in reliability instead of a cost or liability.

Establishing a Preventive Maintenance Program

A good preventive maintenance program is the basis of efficient and effective fleet maintenance and repair. Preventive maintenance programs generally consist of:

• Routine inspections on a scheduled basis according to mileage, engine hours, or time intervals

• Digital logging of all repairs performed for future reference

• Use of predictive analytics to identify potential problems before they become problems.

• Standard procedures for preemptive repairs.

The Technology Advantage

Modern fleet management services are reaping the benefits of technology to improve their maintenance schedules and the life cycle of their vehicles. Today, telematics systems can warn managers of potential problems before they become catastrophic events, and scheduled repairs, rather than emergency repairs, can be booked in advance.

When Emergencies Happen: Why Find a Partner Who Responds Fast

Despite our best efforts, emergencies will happen. When they happen, working with a reliable truck roadside assistance provider can be a game-changer. Getting stranded on a remote highway in the middle of the night is not when you want to find out that the roadside service you contracted is either understaffed or not equipped to assist you and your vehicle!

In contrast, professional heavy-duty roadside truck assistance providers offer:

• 24/7 service

• Coverage across the US

• Qualified technicians with the right equipment

• Transparent pricing with no surprises

• Quick response times

Working with a Professional Truck Management Company

Experienced fleet operators know that using a third-party company to manage maintenance is almost always cheaper in total costs. A professional truck management company has the experience, the existing relationship with service providers, and the economies of scale that an in-house operation usually cannot offer.

The Bottom Line

Maintenance is an Investment, Not an Expense.

In a highly competitive transportation industry, the main competitor is not the company that does the best cost-cutting; it's usually the company that is able to keep their assets at their peak operating levels while managing costs. Properly maintained fleets provide a more reliable service, have a better resale value, and generate a better yield on investment.

At Kooner FMS, we have developed maintenance programmes that can ensure fleet operators don't fall victim to Deferred Maintenance, which is costly for the business and driver. Having a focus on preventative maintenance or proactive care, while getting emergency roadside assistance after hours to help ensure our clients can operate at peak performance and maximize the longevity of their valuable assets.

Ensure that in fleet operations, you will always pay for maintenance. The only decision is whether you want to pay now or pay much more later.