What’s driving the rise in costs for van operators?
Businesses operating fleets of vans are facing significantly higher parts price increases than those running cars, according to new data from epyx’s 1link Service Network. CVW reports.
The latest analysis from epyx, which manages service, maintenance, and repair (SMR) processes for more than four million vehicles through its 1link Service Network, reveals a concerning trend for van operators.
“Recently, we released data showing how prices had increased across our entire basket of sample parts,” said Tim Meadows, epyx CEO. “Now, with these new numbers, we’re providing insight into how cars and vans have been affected differently.”
According to the data, vans have been disproportionately impacted by parts price inflation compared to cars. “Since 2020, inflation has risen by around 23%, but the increases seen for vans have been higher in every category of service, maintenance, and repair on which we are reporting here. Increases have also been higher than for cars in five out of our six categories,” Meadows explained.
This disparity presents a unique challenge for businesses that rely heavily on vans. The reasons behind this trend are not entirely clear. “It’s difficult to know why this is the case. The disruption that has seen parts prices increase rapidly in recent years—from the effects of the pandemic through to the war in Ukraine— has been unpredictable and erratic. It could just be that price pressures have randomly landed on vans, rather than it being any kind of intentional policy from manufacturers,” Meadows added.
top line, for example, front discs and pads costs for cars are 21% higher so far in 2024 than in 2020.
For fleet managers, this data underscores the importance of closely monitoring parts spending, especially for van fleets. While price increases may be unavoidable, there are still ways to mitigate their impact.
“What it does undoubtedly mean is that businesses operating large numbers of vans should keep a close watch on their parts spending. While it is not possible to stop prices rising, it is still very much viable to find the best value for your fleet, using technology of the type we offer through 1link Service Network,” Meadows advised.
The 1link Service Network platform, utilised by thousands of franchise dealers, independent garages, and fast-fit outlets, provides fleet operators with the tools to manage and optimise their service, maintenance and repair (SMR) processes.
