Leasing trucks, as opposed to buying, could save fleets up to 19% over a vehicle’s lifetime from procurement to disposal, according to a report by accounting giant KPMG released this month.
But smaller companies, in particular, may be unable to achieve economies of scale to make owning their trucks economical, KPMG’s “Lease or buy? Evaluating the rising costs of truck fleet ownership” report said.
The findings were based on Ryder System customer data of nearly 2,000 Class 8 U.S. commercial fleets.
The accounting firm noted that fleet managers and owners might underestimate or fail to include costs, making full-service leases that include things like legal fees, taxes and roadside assistance the better choice.
Interest-rate reductions are poised to free up capital, but the report noted operational costs are rising. The American Transportation Research Institute reporting truck and trailer purchase and leasing costs collectively rose 8.8% from 2022 to 2023.
Additionally, commercial fleet owners surveyed for the report underestimated actual inflation. “Although inflation and interest rates began rising in 2021-2022, many commercial fleet owners continued using actual expenses from earlier years to budget for the future,” the report said.
Further complicating matters, 41% of respondents may have underestimated total cost of ownership because they listed $0 for items such as administration and roadside assistance, the report said.
“KPMG found that self-reported fleet costs have increased by at least 14 percent for class 8 tractors since 2016; comparable third-party data show a nearly 38 percent increase, indicating owners and managers frequently underestimate, or don’t fully consider, what they’re spending on truck ownership,” the report said.
