Fleet Advantage announced today a new collaboration with FleetNet America. The new relationship complements Fleet Advantage’s already robust asset management solutions, with the ability to facilitate reliable fleet maintenance service offerings to organizations with transportation fleets that seek all the benefits of a flexible, unbundled lease structure with access to a world-class maintenance provider with a proven nationwide network.
Many of today’s fleets want the flexibility of an unbundled lease structure, but also need the option of a reliable maintenance provider with access to a nationwide network of repair technicians and locations. This is important because truck operating costs are rising, and maintenance and repair (M&R) represent a large portion of the increase.
According to ATRI1, the cost of operating a truck in 2022 was $2.251 per mile, surpassing two dollars per mile for the first time in the history of ATRI’s Ops Costs report. M&R costs rose in 2022 by 12% to an industry average of $0.196.
FleetNet America by Cox Automotive and its network of 65,000 vetted service providers are leading the managed maintenance industry with 24/7/365 customer service. Additionally, Fleet Services by Cox Automotive, a nationwide leader in on-site maintenance and repair, will support the new program as one of the key service providers. This new program means fleets have reliable access when and if they need it, and only pay for what they use instead of being locked into and paying for full-service maintenance packages even if they do not use it. With $3 billion assets under management, Fleet Advantage’s working relationships, National account support from several Original Equipment Manufacturers (OEMs) and reputation in the marketplace enable us to continue to serve America’s corporate fleets, including FleetNet America’s clients in need.
This announcement is a significant expansion of overall services for Fleet Advantage, according to Brian Holland, President and CEO. “This partnership allows Fleet Advantage to offer maintenance solutions and alternatives and incorporate the expertise and national network that Cox has assembled. Having an established and proven maintenance and service program option enhances our existing suite of award-winning offerings, providing fleets with a truly holistic best-in-class asset management solution that helps position them as industry leaders.”
“FleetNet America is grateful to work with Fleet Advantage to serve their fleet clients with our full offering,” said Alex Fraser, AVP of FleetNet America. “This relationship advances FleetNet America’s mission of every vehicle, every service, connected.”
Many fleets today remain stuck in a full-service lease (FSL) agreement because they need a maintenance program for their trucks. The principal difference between an FSL and an Unbundled Lease is that FSL is not transparent to the customer. In an FSL agreement, fleets essentially hand over all decision-making on fuel, and M&R costs to their lease provider, instead only focusing on a “bundled” monthly payment. This type of contract can be detrimental to a fleet’s bottom line. In an Unbundled Lease agreement, fleets have greater flexibility on these individual costs, but also the freedom to upgrade and scale through flexible leasing, guaranteeing the lowest-possible financial costs involved with truck fleet asset management and truck acquisition.
This partnership demonstrates Fleet Advantage’s commitment to helping organizations lead with flexibility. The company continued to prove the effectiveness of this flexible model by successfully unbundling nearly 700 units in calendar year 2023 alone.
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