How To Control Costs With Regular Replacement Cycles
Higher equipment costs combined with regulatory and economic uncertainty often push fleets to hold onto Class 8 trucks beyond their typical trade cycles. While extending trade cycles can reduce capital expenses, fleets often run into an economic tipping point where running older trucks begins to drive operating costs higher. As trucks age, fuel efficiency declines, maintenance costs rise and downtime can become more frequent.
Late-model trucks incorporate advanced aerodynamics, lighter materials and new technology that typically improve fuel economy. Plus, fuel economy begins to degrade after trucks have accumulated around 400,000 miles. Even a small drop in miles per gallon can translate into thousands of extra dollars in fuel costs per vehicle.
According to the National Private Truck Council's 2025 Benchmarking Survey, leased fleets have a fuel economy of 7.24 miles per gallon compared to the 5.84 miles per gallon that owned fleets, which is driven by shorter trade cycles for equipment that leased fleets experience. The survey found that leased fleets have an average equipment age of 3.2 years versus 5.34 years for companies that own most of their equipment.
Aging vehicles also face higher risks of component failures in critical systems, including transmissions, engines and emissions systems, which come with significant repair costs. Component failures and increased maintenance needs can also lead to unplanned downtime that disrupts schedules and frustrates drivers.
In contrast, late-model Class 8 tractors feature extended maintenance intervals, reducing downtime. Enhanced connectivity and telematics further reduce downtime by enabling technicians to identify issues remotely and address them before they escalate, reducing over-the-road failures and improving uptime.
Beyond performance, newer equipment can also help improve safety. Class 8 tractors are increasingly equipped with advanced safety features, including collision avoidance systems, adaptive cruise control, automatic emergency braking and blind-spot detection. Fleets adopting safety technology are better able to protect drivers and reduce risk.
While new equipment can come with high capital costs, full-service leases can provide a cost-effective way for fleets to adhere to regular replacement cycles without the upfront costs and credit constraints of ownership. Fixed monthly lease payments make it easier to budget for fleet costs, especially since maintenance is included. Leases also remove the associated expenses of overhead, towing, taxes, washing, acquiring substitute vehicles, licensing and fuel, among other hard costs.
Fleets that lease with Penske also have access to Catalyst AI™, which analyzes data from across a fleet’s operations and transforms it into real-time actionable insights. Fleets can use the data benchmark against similar operations as well as their own performance to see their utilization, fuel efficiency, maintenance costs and more.
To learn more about how leasing can help fleets control costs, contact us today.