thomas201 wrote:
I got to be friends with two company fleet managers over the years. One with a fleet of hundreds of our type of trucks, the other had several thousand in the US, along with a fleet of heavy duty trucks.
Initial cost, all costs of ownership (fuel, parts, oil, antifreeze, mechanic time and so on), then your exit price when you sell the vehicle. Pass it though Discounted Cash Flow Rate of Return (Internal ROR) and/or Net Present Value, and there you have it. They bought gas unless the usage mandated diesel (heavy loads).
Now for fun, I just loved towing for 10 years with a diesel, but don't confuse that with money. Fun and money, do not normally travel together.
And while that is a good point and virtually every large corporate fleet of pickups is gassers (unless like you said, diesel power being absolutely necessary), there are probably a dozen significant differences between "fleet" considerations and "personal" considerations.
It'll make my fingers hurt, but here's a few.
1. Fleet vehicles generally = multiple or maybe hundreds of different drivers over the course of a vehicles' lifespan. Not conducive to the bit of extra consideration diesels need.
2. Same as above, but far more valuation is lost due to damage on fleet vehicle than an average personal vehicle. IE, a person may have a dump run truck or wood truck for beatin on. Alot of fleet vehicles, they are ALL proverbial wood run trucks...
3. Resale on fleet vehicles is a lower % of initial cost than comparable (cared for) personal vehicles pretty much across the board.
Would you intentionally spend more knowing you're getting a lower ROI, up front?
4. Reliability. Absolutely a factor. And no one would argue that the avg diesel needs a little more care and can have different more expensive problems than an average gasser. For a fleet manager/owner, this combined with higher initial expense, and the factors listed above, tip the scales the other direction.
5. Initial expense is lower with gassers, yet the "fleet" has a diesel somewhere if it's needed. Avg private owner has 1 truck for everything, therefore can't get out of the gasser for week when it's time to tow the 5ver. And $10k/truck over 100 trucks a year is...alot of money saved on the bottom line, for something that will be subject to #1-3 above.
I could keep going, but point is , fleet considerations aren't necessarily synonymous with personal vehicle considerations.
From a personal standpoint, I get a greater ROI out of most vehicles compared to many other people. And a diesel will cost you more if you view it as a throw away Solo cup and not a piece of fine china (true for all vehicles).
I can confidently say that EVERY diesel I've had has returned a greater ROI, all in, than most gassers. And a few gassers have taken a hit that I would not have expected.