Truck Trade Cycle

How do you recognize the “sweet spot,” the optimal time to replace your old vehicles with new ones? By considering a lot more than just fuel economy.

Earlier this month, Patrick Gaskins, CTP, Group Vice President of Financial Services of AmeriQuest Transportation Services, penned an article for monitordaily.com that warned fleet managers and owners of the danger of focusing on fuel economy alone and letting that dictate your trade cycles. Gaskins indicates that with the gains in fuel economy, many fleets are using that one factor to decide when to trade in their older, less fuel-efficient equipment. But, he notes, companies should also be considering acquisition costs of new assets, interest rates, maintenance and repair costs, resale values, technological improvements, fuel costs, warranty programs, and utilization.

Using only one of these considerations, to the exclusion of others, can lead to unintended consequences. Gaskins provides the hypothetical example of a manufacturer who suddenly produces a truck with a 12 MPG capability. The first reaction might be to want to replace every tractor in the fleet; however if all fleets did that, the glut of used trucks on the market would considerably depress used truck values, and that would impact negatively on the cost benefit equation. He recommends that fleets consider all pertinent measurements and that they review those calculations on a regular basis in order to optimize their vehicle lifecycle.

Read Gaskins full article to discover the right way to identify a vehicle’s “sweet spot.”

Kate Freer

About Kate Freer

Kate Freer is Vice President of Marketing for AmeriQuest Business Services. In this role, Kate is responsible for AmeriQuest’s marketing and communications activities, including image and market development, corporate communications, media relations, brand management, advertising, and market research and analysis. She leads go-to-market strategy for AmeriQuest and its subsidiary companies.Prior to her current role, Ms. Freer served as Director of Marketing of AmeriQuest. She joined the company in 2004 as Marketing Manager, was promoted to Director in 2007, and subsequently promoted to Vice President of Marketing in 2012.Before joining AmeriQuest, Ms. Freer held various marketing, communications, and advertising roles in the publishing industry for Information Today, Inc. and the Courier-Post, a Gannett company.Ms. Freer holds a Bachelor of Science degree from Stockton University.

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