Fleet SMR spend on older cars has increased significantly as a result of the pandemic and the semiconductor shortage.

Fleet SMR expenditure is rising in line with longer replacement cycles

The proportion of fleet service, maintenance and repair spend on fleet cars aged four years old or over has risen from 28% in 2018 to 43% in 2022, new figures released by Epyx reveal.

Its data also shows the average SMR invoice price for such older vehicles is 24% higher than for those aged below four years – equating to around an extra £50 due to extra wear and tear and greater risk of major component failure.

The data lays bare how the longer fleet running cycles forced on operators due to vehicle shortages are impacting businesses.

Tim Meadows, CCO, said: “It’s widely recognised that fleet vehicles have been getting older since the pandemic took effect, thanks to much reduced new car supply as well as businesses generally taking out contract extensions. These figures make clear just how radically the age composition of fleets in the UK has changed. This is a dramatic shift.”

The Epyx data – taken from the company’s 1link Service Network platform – shows that in 2018, total SMR spend was weighted 72% towards vehicles aged under four years and 28% towards four years and over. By 2022, this has changed to 57% under four years and 43% for four years and over.

Meadows remarked: “This situation creates serious challenges for fleet operators. We are working closely with our customers to use our technology to keep SMR costs under control but, as vehicles age further, expenditure will inevitably rise.”

And the bigger question is whether this ageing of the fleet will continue.

While latest new car registrations figures show vehicle supply has improved a little, Epyx says it’s likely that cars are still being replaced at a much lower rate than pre-pandemic.

“The situation is much more likely to become increasingly acute before we see any improvement,” Meadows summed up.