Fleet Advantage announced it has expanded its asset management solutions through its new EXchangeIT Trailer Lease Program, enabling flexible trailer lease solutions that provide a lower Total Cost of Ownership (TCO).
Fleet Advantage revolutionized asset management for heavy-duty trucks by leveraging business intelligence and flexible finance programs and proved a lower TCO when shortening the lifecycle using flexible lease terms. The company is now adapting its pioneering lifecycle management to trailers, with data that validates similar cost benefits when shortening trailer lifecycles.
Fleets that replace their trailers every five to seven years through the EXchangeIT program, as opposed to legacy practices of operating them for 10 years or longer, can achieve significant savings to their bottom line. Refrigerated trailers see the largest cost savings, a per-unit savings of $8,758 in the first year, when replacing a 2015 model year with a 2021 model year.
Fleets experience significant savings in fuel cost as a result of a more efficient unit, fuel savings from aerodynamic components such as Trailer Under Fairing and Low Rolling Resistance Tires and weight reduction, as well as significant maintenance and repair (M&R) cost-savings, particularly on the refrigerator unit.
Similar to tractors, trailer technologies and design advancements are rapidly evolving due to the Greenhouse Gas Emissions Mandates and a common goal of increased fuel economy. In addition to developing aerodynamic components, benefits of new equipment include temperature and trailer tracking, tire monitoring and inflation systems, and overall cooling improvements that eliminate degradation of insulation. Lastly, newer trailers have higher reliability with trailer uptime and provide compliance with various mandates such as the California Air Resources Board Regulations (CARB), Tier 4 emission standards, and the Food Safety Modernization Act (FSMA).
“Transportation fleets that leverage Fleet Advantage and its EXchangeIT program and analytics software ultimately save on the cost of their trucks and trailers over the long-term since they make replacement decisions based on economic obsolescence rather than functional obsolescence,” said Brian Holland, President and Chief Financial Officer of Fleet Advantage. “Furthermore, this model helps fleets determine replacement cycles more accurately, rather than by equipment failure reaction, which can help fleets avoid production backlogs from truck and trailer manufacturers.”
The latest ACT Research Trailer Components Report noted that manufacturers continue to produce trailers at near-record levels. Frank Maly, Director of CV Transportation Analysis and Research at ACT Research said that fleets were “clamoring to order additional trailers earlier this year for 2019 delivery, frustrated by a lack of available production slots and OEMs’ unwillingness to accept orders for 2020.”
Fleet Advantage bases its flexible trailer lease on market trends, fuel economy and business conditions, which provide several options for their clients:
- EXchangeIT by replacing individual units at lessee discretion when economically obsolete;
- EXtendIT by extending individual units beyond the lease term at fixed, reduced rates; and
- Terminate individual units.