Vehicle acquisition, repair, and insurance expenses continue to climb into late 2025, offset only partially by lower fuel prices. Aging fleets, a result of deferred replacements during the supply chain crisis, are driving higher maintenance and downtime costs.
ACQUISITION COSTS
According to Kelley Blue Book, the average transaction price (ATP) for new vehicles was $48,841 in July 2025, up 1.5% from the previous year. For fleet buyers, factory-order cap costs are averaging around $47,000, reflecting steady pricing, residual tariff effects, and continued material cost pressures.
Tariffs on imported components — particularly steel, aluminum, and EV-related systems — have further elevated manufacturing costs, pressuring OEM pricing.
MAINTENANCE & REPAIRS
Average repair costs increased 3% yearover-year, followinga4% rise in 2024. Labor shortages, rising parts prices, and the complexity of vehicle technology continue to pressure maintenance budgets. Aging units are the largest driver of expense and downtime, with some fleets seeing 20–25% longer repair timelines compared to pre-pandemic levels.
Average Cap Costs by ModelYear | Factory Orders
Factory-order costs rose 51% since 2021, reaching $47,300 for MY-2025 vehicles, as tariffs and technology costs keep acquisition prices elevated.
Source: Element's Strategic Advisory Team
Average Months-In-Service & Sold Odometer
Fleet vehicles sold in 2025 averaged 96 months in service and nearly 98,000 miles at resale — both record highs. Extended replacement cycles, driven by higher acquisition and repair costs, have kept vehicles in operation longer. Despite the added age and mileage, remarketed values have remained resilient thanks to steady used-vehicle demand.
Source: Element's Strategic Advisory Team
Residual History & Forecast
3-yr Old Vehicles, 36-MonthTerm, All Models, March 2025 data
The average value for three-yearold vehicles will remain above pre-pandemic averages
Residuals are easing but remain strong, with 2025 values near 53% — above pre-pandemic averages despite softer used-vehicle demand.
Source: Black Book
Average Repair Cost
Average repair costs rose again in 2025, driven by higher parts prices, labor shortages, and the increasing complexity of vehicle technology. Although the rate of increase has slowed compared to 2023–2024, fleets continue to face elevated maintenance expenses — particularly for older units kept in service longer due to delayed replacements.
Source: Element's Strategic Advisory Team
Average Sale Price
Remarketed vehicle prices remain elevated in 2025, easing from pandemic highs but still well above historical averages due to sustained used-vehicle demand.
Source: Element's Strategic Advisory Team
Tariff-related component costs continue to affect both acquisition and repair budgets, reinforcing fleets’ shift toward longer lifecycles and selective vehicle replacement.
DEPRECIATION & RESIDUAL VALUES
Residual values have normalized from pandemic highs but remain above pre-2020 averages. Black Book data shows the average residual value for three-year-old vehicles stabilizing near 53% for 2025, down from the 2021 peak of 82%. The supply of used vehicles remains tight, supporting resale prices even as depreciation trends reassert themselves.
FUEL & ENERGY COSTS
Gasoline and diesel prices have moderated from 2024 peaks, thanks to increased global production. However, volatility persists due to geopolitical risks and the impact of tariffs on refining materials. Fuel still represents up to 35% of a fleet’s operating budget, underscoring the importance of fuel efficiency, driver coaching, and routing optimization.
INSURANCE & RISK
Accident-related costs and higher vehicle repair complexity are pushing insurance rates upward. Sensors, ADAS calibrations, and expensive components are raising claim severity, with premiums expected to keep rising through 2026. ■
