NEW ORLEANS, March 04, 2024 (GLOBE NEWSWIRE) -- Fleet Advantage, a leading innovator in specialty financing, fleet data analytics, fleet management services, and life cycle cost management, 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. The announcement was made at the annual American Trucking Association’s (ATA) Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition in New Orleans.
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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About Cox Automotive
Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn.
About Fleet Advantage
Fleet Advantage is the largest independent lessor for heavy-duty Class-8 trucks and has over $3 Billion assets and over 20,000 units under its Life Cycle Cost Management program. This comprises a client portfolio of more than 50 of America’s top corporate fleets, including five (5) of the top 10 private fleets in the country. Fleet Advantage guarantees the absolute lowest cost of operation by providing fleet asset management, financing solutions, and fleet analytics, using the latest equipment technology to achieve optimum vehicle productivity and maximum safety. Our model of TCO, clean diesel, and safety-enhanced trucks with shorter life cycles complement our customers’ ESG goals. The accomplishments of Fleet Advantage and our leadership team continue to be recognized for tremendous growth and industry leadership with numerous awards, including Top Private Independent and Most Innovative Firm by the Monitor Daily, Top Software & Tech Awards, Top Women Associates in Finance, and Green Supply Chain Awards to name a few. The company has also been named to Inc. magazine’s 500|5000 list of fastest growing companies in the nation.
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1: ATRI Operational Costs of Trucking: 2023 Update; June 2023
