Evaluating Total Cost of Ownership for Commercial Fleets

This technical report by KPMG LLP examines the rising costs associated with commercial trucking fleets and the implications for fleet owners and managers. It highlights the significant increase in total cost of ownership (TCO) for class 8 tractors, which has risen by at least 14 percent since 2016, with third-party data suggesting an even greater increase of nearly 38 percent. The report emphasizes the importance of accurately assessing TCO, which includes various cost levers such as financing, maintenance, and administrative expenses. It discusses the potential benefits of leasing versus owning a fleet, revealing that a full-service lease could save up to 19 percent in certain applications. The findings are based on a study utilizing customer fleet data from Ryder System, Inc. and aim to guide fleet managers in making informed decisions regarding fleet ownership amidst increasing costs and economic pressures.