Knowing when it’s the right time to retire a truck depends on a number of factors you should be considering.
In a recent IdeaXchange blog, Jane Clark, Vice President of Member Services for NationaLease suggested that fleet owners and managers consider a variety of factors before retiring and replacing trucks in their fleet. The main suggestion is don’t blindly follow tradition just because that’s the way it’s always been done, whether that means setting and following a specific trade cycle, or trading when a new technology appears.
Instead, Jane says to consider these factors, among others:
- Cost of a new asset
- Interest rates
- Maintenance costs
- Fuel costs,
- Resale value
- Technology improvements
So a new truck may be costlier, but newer, fuel-efficient technology will compensate for the extra cost over a set time. Plus, keeping an older truck will require more maintenance and downtime. That should be factored in when considering when it’s time for your truck to be retired and replaced.
For more insight as to truck retirement timing, read Jane’s full blog.