Fleets must consider SMR costs from longer leases, Epyx warns
08 September 2020
Author: Sean Keywood
Fleets extending replacement cycles due to the coronavirus pandemic need to make sure they've budgeted for the potential impact on SMR costs, according to software firm Epyx.
The company, which produces the 1Link Service Network SMR platform, says that the service profile of many vehicles can involve considerable extra expense in years four and five.
Commercial director Debbie Fox said: "It seems like an obvious gain to defer replacing vehicles because it looks as though you are saving money when budgets are under pressure.
"However, the truth can be different. If you examine the cost of SMR over time, it tends to rise quite quickly as the vehicle ages."
Fox said that according to industry SMR data, this especially occurred around the point of the first MOT at three years, which was also where the warranty ended for most major manufacturers.
"There are several reasons for this and the picture does vary quite considerably when you look at different models and mileages, but you may find that you will have to buy a complete set of tyres or pass the point at which a major scheduled service is due.
"For some vehicles, there may even be relatively expensive one-off costs such as the replacement of a timing chain."
Fox said that while it was potentially prudent to consider extending replacement cycles, a new vehicle or lease could be better if the aim was simply to save money.
She said: "Really, the important thing is to do the maths and work out which option results in the lower cost.
"If you lease vehicles, your leasing company should be able to help with this or, if you are a user of 1Link Service Network, we will often be able to provide advice."