Fleets See Steep Rise In Vehicle Repair Costs

Fleets have experienced a steep rise in vehicle repair costs in recent years, with costs rising by 40% since 2018.

The figures in a recent study highlight the rising cost of repairs, which is down to a multitude of factors.

The average claim cost has risen by more than 10% each year, which has resulted in a significantly higher cost today. The issues during the pandemic have caused a knock-on effect that’s still being felt by fleets.

Why Have Repair Costs Risen?

Let’s think about the last few years – between the global shortage of components, inflation, the pandemic, and Brexit, the fleet industry has faced a lot of challenges.

All of those things had short-term impacts on fleets but the reality is that the long-term impact will only be revealed as we get further down the line.

The rising repair costs can be put down to a few things, namely the reality that inflation means things are generally more expensive than a few years ago – and with inflation rates particularly high over the last year or so, it’s having an even more profound impact.

There’s also the reality that delays to replacement cycles has resulted in older vehicles putting more miles on the clock, which in turn puts more strain on the vehicle’s components…

Often resulting in higher repair costs when things go wrong.

Plus, older vehicles need to be MOT’d each and every year, unlike vehicles under 3 years old as the first MOT doesn’t take place until a vehicle is 3 years old.

And recent data on MOT failures has indicated that the most common reasons for failure are:

• Suspension
• Lamps
• Reflectors
• Tyres
• Brakes
• Electrical equipment

And those components can often be expensive to repair or replace, especially if there is major damage or defects with the parts.

How Can Repair Costs Be Mitigated?

The government is already exploring ways in which they can help motorists and fleets, with discussions over changes to MOTs taking place.

Under initial proposals, MOTs would move to every two years rather than every year and the first one wouldn’t take place until 4 years after the vehicle’s manufacture date.

But those plans have been criticised by some experts who’ve pointed out that the actual cost of MOTs is capped by the government, and it’s actually the repairs associated with the test that are the biggest expense.

So, the reality is that vehicles that might be unsafe or not roadworthy could be on the road by virtue of not having an annual MOT under the proposals… which has been met with a lot of opposition.

Essential repairs, maintenance, and servicing can run up to hundreds (or thousands) of pounds every year, and some experts have criticised the short-sighted approach of considering changes to the MOT testing structure.

The reality is that even though the rules differ for fleets, any changes to the MOT structure may also see changes to the rules for fleet owners.

What do you think of the rise in vehicle repair costs? Has it affected you and your fleet? Let us know in the comments below…