FLEET FINANCIAL STRATEGIES FOR A VOLATILE MARKET

By Cristina Commendatore, content manager and chief editor, Communications and Brand

The pace of inflation has slowed—for now—but still lingers around too high for comfort. And for more than two years, trucking fleets have endured a freight recession while their operational costs continue to climb.  

Today, regulatory and economic uncertainties are keeping fleets across segments, original equipment manufacturers, suppliers, and consumers on their toes. Tariffs and how trade negotiations play out only further compound economic uncertainty and supply chain resiliency concerns.  

As bottom lines and purchasing decisions remain top of mind amid the volatility, it’s important that fleets of all sizes—particularly small and medium operations—focus on what they can control. Part of taking control means being proactive about financial planning, spec’ing, and procuring vehicles with resale in mind.  

“The current market is challenging for fleets,” noted Patti Brault, VP of Sales at International® Financial. “This is not a new phenomenon; transportation is known for its cyclical nature. One lesson learned through previous cycles is that cash and access to cash play an important role in risk mitigation.” 

“Having a strong relationship with traditional lenders is important,” Brault added. “Having access to cash for operations through a bank line of credit provides fleets peace of mind. Financing capital-intensive purchases, such as tractors, with a captive finance company allows fleets to preserve bank lines for operating-related needs.” 

In addition to preserving liquidity, financing with a captive finance company can offer several other advantages for a trucking company: 

Tailored financing options: Look for customized financial solutions that align with the specific needs of your trucking business, such as flexible payment plans or lease options. 

Streamlined process: Work with those who specialize in truck financing to simplify the financing process, getting you on the road quicker and with less hassle.  

Bundled services: Work with partners who can co-develop options for maintenance packages and extended warranties. Later this year, International® Financial plans to roll out an insurance option for our customers.  

“All of this can simplify fleet management and lead to cost savings for fleets,” Brault pointed out. “Bundling services financing can lead to discounts compared to purchasing these services separately. This can reduce total cost of ownership (TCO).”  

Additionally, adding bundled services can de-risk the fleet by making costs predictable, making it easier to budget and hold onto cash flow.  

“Bundling services with financing adds an element of convenience for the fleet,” Brault said. “By consolidating multiple services into one package, businesses save time and effort, which can indirectly reduce operational costs.” 

All of this is particularly important today for fleets’ TCO, especially as maintenance and repair costs also continue to rise. Taking advantage of comprehensive ownership and service solutions, as well as insights gleaned from connected vehicle data, provides enhanced productivity, efficiency, lower TCO, and greater peace of mind. Proactive PMs and the right parts, fluids, and procedures also can help improve fuel economy and overall equipment costs down the road.  

At the end of the day, the key to success in times of uncertainty is to think ahead, team up with the right partners, and be ready to pivot accordingly as things continue to change.