Fuel Savings Drive Up the ROI on New Truck Purchases

Fuel SavingsYour current vehicle has a finite life cycle. So how will fuel savings offset the cost of a new truck purchase?

The biggest barrier to purchasing new trucks has always been the price tag. Now, new fuel-efficient technology has driven the cost of these trucks even higher…$30,000 higher since 2006! Since business ebbs and flows and the transportation industry often has little control over how and when that occurs; other ways need to be found to offset the costs of purchasing new vehicles. Since fuel efficiency is one of the major selling points, how much of an increase in miles per gallon makes the difference?

How about 1.5 miles per gallon? It’s hard to believe how much of a difference that small increase could make; that is, until you actually crank up the Excel spreadsheet and put the numbers in place. That’s exactly what we did and here are the results, based on a fuel cost of $3.85 per gallon.

Fuel Costs at 75K miles/yr
      5.5 mpg       7.0 mpg  $ Difference
1 Year $52,500 $41,250 $11,250
5 Year $262,500 $206,250 $56,250

 

Fuel Costs at 100k miles/yr
      5.5 mpg       7.0 mpg  $ Difference
1 Year $70,000 $55,000 $15,000
5 Year $350,000 $275,000 $75,000

 

Fuel Costs at 120k miles/yr
      5.5 mpg       7.0 mpg  $ Difference
1 Year $84,000 $66,000 $18,000
5 Year $420,000 $330,000 $90,000

 

That comes to an overall fuel cost savings of 21% year over year…and when fuel costs increase, that figure becomes even more impressive. Whether you’re an independent or manage a large fleet, that savings is a huge incentive when it comes time to think about either replacing an older vehicle or adding to a fleet.

If you’re considering a used truck with decent mileage, but little in the way of fuel-efficient technology, you have to assess the long-term cost vs. the short-term savings of purchasing a new truck. You need to figure in the potential cost of fuel should prices jump up, which seems to happen more frequently. If the numbers above stay constant, the price difference between a fuel-efficient vehicle vs. a slightly older, less fuel-efficient model would be realized in about two years at 100,000 miles per year.

It’s also necessary to take into consideration that the newer the truck, the less maintenance required. Less fuel…less maintenance. Put these two together and you’ll see why purchasing a new truck vs. an older one is a really smart business decision.

About the Author: Byron Lay has been the Director of AmeriQuest Road Rescue since its inception in 2011, where he oversees day-to-day operations and strategic planning. He also establishes relationships with vendors and customers to support over-the-road events. Prior to Road Rescue, Byron was the Director of Maintenance for CURE Leasing & Maintenance where he managed CURE’s 900+ power unit fleet through 3rd party relationships throughout 49 states and Canada. Byron brings more than 10 years of transportation maintenance experience to the Road Rescue program.


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  1. Pingback: Fuel Savings Drive Up ROI on New Truck Purchases | LiMiT

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