Advice On Performing Our Own Fleet Maintenance

[07Wolfie]

As a follow-up to a previous post...

My company has a small but growing fleet of work trucks (now up to 7) and they're all at least a few years old. We currently just have the guys take the trucks to Iffy Lube whenever they remember to, but I'm considering establishing an in-house maintenance program. We have a huge warehouse and lots of tools, as well as a willing and teachable kid to do the work, so we could pretty easily take care of most PMs right here. I'd like to get some feedback from the guys/gals that have experience in fleet maintenance:

-For a fleet this small, would in-house maintenance even pay off?
-Pitfalls/problems like EPA permits to store used oil
-Ways to keep costs down

I can't tell you all how valuable this board is to me. Thank you very much in advance for your advice!

 

[SteveSRT8]

We have been running fleet vans and pickups since 1972.

HUGE cost savings from bringing the work in house. That's the principal bennie. I like to keep the money in our pockets.

Another payoff is quality. My oil filters are filled before installation, I only buy quality parts, I know the condition of my trucks, everything gets greased, etc.

The modern vans tell you when to service them. Buy whatever synthetic is on sale and follow the OLM.

 

[crazy8]

Originally Posted By: 07Wolfie
As a follow-up to a previous post...

My company has a small but growing fleet of work trucks (now up to 7) and they're all at least a few years old. We currently just have the guys take the trucks to Iffy Lube whenever they remember to, but I'm considering establishing an in-house maintenance program. We have a huge warehouse and lots of tools, as well as a willing and teachable kid to do the work, so we could pretty easily take care of most PMs right here. I'd like to get some feedback from the guys/gals that have experience in fleet maintenance:

-For a fleet this small, would in-house maintenance even pay off?
-Pitfalls/problems like EPA permits to store used oil
-Ways to keep costs down

I can't tell you all how valuable this board is to me. Thank you very much in advance for your advice!




I recommend that you find a local shop that is honest, with a good record of fleet services. Yes it will cost more in the beginning but in the long run it will pay off. Just a small list of expenses if you perform your services in house, is your property permitted for automotive repair and services? What about the added cost of insurance? Haz mat permits, Will your landloard allow service and repairs on their propetry? Information system costs Alldata or Mitchell? Factory level scanner or generic scanner? Will your insurance company allow a non-certified mechanic to service your trucks? Who is responsable for record keeping and purchasing? Are your trucks required to have BIT inspections and is this person certified to perform them? What about defective parts, who eats the cost?
Please be aware of the actual costs involved, I am not trying to plie on you here, yes it is expensive to have professional repairs performed on fleet trucks, but you might find out that it is cheaper to have a shop perform there services in the long run. One last thought, how is it going to look when a jury has to decide in a lawsuit who is liable for a fatality when you have a yound kid versus a professional licensed mechainc servicing your trucks?

 

[yonyon]

On the subject of crazy8's hypothetical lawsuit I think there might be a good strong middle ground if your in-house guy is conscientious and you don't rush him when dealing with critical safety systems. That may not give you the legal protections afforded by getting your maintenance done exclusively from a reputable outside operation, but you're probably less likely to have a wheel roll away or brakes fall off than when routinely using a quicky-lube.

It's one more way you can save money and one more way to get a headache. Are you comfortable having more problems to deal with (especially in the short term) to be justified by the potential long term savings?

 

[Duffman77]

I work in a department thats role is to manage the maintenance of a diverse set of equipment that numbers in the neighborhood of 4000 pieces. The advantages of doing some or all of your work extend past cost, in fact some things can be farmed out cheaper than done in house and others are cheaper in house.

What you gain is having someone in house deciding on what work needs to be done and what may be some shop trying to make some extra dollars. You also gain better control over equipment downtime as YOU set your own priorities. Lastly you keep a consistent set of eyes on your equipment to monitor things over time.

The benefits will really be dependent on the quality of your workers and the quality of your system administration. Clearly with only 7 vans you are looking at having one guy and a certified mechanic may be too costly. You could bring in some cheap labor to do fluid changes in minor repairs and continue to farm out brakes and steering and still have cost savings. Ideally you should look for a retired mechanic who wants to work a couple days a week on a timetable he sets for himself, I would say that could be a mutually beneficial relationship if he will sacrifice some pay for flexibility.

Ultimately there is no replacement for a quality inspection regiment coupled with record keeping to manage a fleet, and you don't need fancy tools to do this.

 

[The Critic]

I know that for our commercial auto accounts, from a loss control standpoint, we want to see that the fleet is regularly serviced and inspected by an outside ASE certified auto repair facility.

At least from a liability standpoint, you are far better off sending the vans to a "quickie lube" that is insured to service the fleet, as opposed to doing it yourself. In the event of an accident, you will have someone to go after. Your insurance company may not be pleased if they knew that you were servicing your own vans and adding that additional exposure.

 

[Shannow]

Critic, you argue both sides of the coin there.

A quality service, under scrutiny from an insurer is worth less than a "tickabox" from Dodgy Brothers Incorporated, because that's someone to sue.

MTA (Motor trades Association) in my state wants to ban backyard mechanics, unless they carry the same level of insurance as an auto garage.

 

[SteveSRT8]

According to my attorney who runs a HUGE personal injury firm in Florida there is no problem having the work done in house as long as the person doing it is either experienced or supervised by someone who is.

As a former NIASE certified technician with years of stealership experience and moonlighting in smaller shops both full and part time I'm okay. I am also allowed to directly supervise someone else.

But you can't just take it to Jiffy Lube and expect that to relieve you of liability! Odds are if you're in biz then you've insured yourself properly. If you're not sure then consult an attorney. In todays litigious society most of us are well prepared for the inevitable.

 

[The Critic]

Originally Posted By: Shannow
Critic, you argue both sides of the coin there.

A quality service, under scrutiny from an insurer is worth less than a "tickabox" from Dodgy Brothers Incorporated, because that's someone to sue.

MTA (Motor trades Association) in my state wants to ban backyard mechanics, unless they carry the same level of insurance as an auto garage.

From a loss control perspective, it's best that auto repairs be handled by an ASE certified shop with the proper insurance.

If the brakes failed on my insured's truck, and he had worked on them himself, as the insurance carrier I would probably be responsible for paying the entire claim. However, if XYZ auto shop worked on it last, there's a chance that I could hold them responsible.

 

[SteveSRT8]

Completely false. The brakes would be examined by a reputable expert. As long as the work was ok you'd have nothing to worry about.

You would have to prove that there was a defect.

 

[crazy8]

Originally Posted By: SteveSRT8
Completely false. The brakes would be examined by a reputable expert. As long as the work was ok you'd have nothing to worry about.

You would have to prove that there was a defect.


I guess you have never been to court before? Todays jurys set out to punish a shop/insurance company whenever they are able.

 

[SteveSRT8]

Pay attention. Read the post I responded to carefully.

NO insurance carrier automatically pays just because the brakes were DIY repaired. They first have the vehicle examined by their 'expert'.

BTW, I've been running a fleet for over 40 years both for myself and others. Do you really think that I've been lucky enough to never go into litigation?

 

[hattaresguy]

For only 7 vehicles I'd probably just start a good relationship with a good local shop for oil changes and the such. The main thing I would get is some sort of fleet management software of just build an excel spreadsheet. Keep track of what was done and what is due to avoid down time.

 

[crazy8]

Originally Posted By: SteveSRT8
Pay attention. Read the post I responded to carefully.

NO insurance carrier automatically pays just because the brakes were DIY repaired. They first have the vehicle examined by their 'expert'.

BTW, I've been running a fleet for over 40 years both for myself and others. Do you really think that I've been lucky enough to never go into litigation?


I can't say much here due to confindentaly agreement. I was hired by a defendents insurance co as a expert witness, the defendant had hired a man in his mid 40's an ex employee of mine who did not have any ASE certs. However he was a very capable mechanic, the fleet truck had a reported brake failure within 500 miles of a brake repair, actually a master cylinder failure after the rear brake shoes and wheel cylinders were replaced, the defendant and shops insurance company lost the case due to the fact they had hired a "non ASE certified" mechanic to perform the repairs. The jurys decision did not take the actual failure in to their decision, they were fixated on the "non ASE certified" mechanic, total [censored] in my opinion, but that is todays legal system.

 

[07Wolfie]

Wow, this was exactly what I was hoping for... you guys have brought up additional benefits and additional risks for me to consider, and I appreciate it. Maybe a good hybrid solution is to do routine PMs (fluid changes, belts/hoses) in-house and use a shop for more complicated or risky things like brake work. I wonder what the chances are that I'd be able to negotiate some pricing with a shop based on a minimum guaranteed dollar amount per quarter or per year?

 

[The Critic]

Originally Posted By: SteveSRT8
Completely false. The brakes would be examined by a reputable expert. As long as the work was ok you'd have nothing to worry about.

You would have to prove that there was a defect.


I think you missed the point. The insured may come out OK since his insurance company would have to pay out the claim, but from an insurance companys point of view, this is an exposure that should not have existed.

 

[crazy8]

Originally Posted By: The Critic
Originally Posted By: SteveSRT8
Completely false. The brakes would be examined by a reputable expert. As long as the work was ok you'd have nothing to worry about.

You would have to prove that there was a defect.


I think you missed the point. The insured may come out OK since his insurance company would have to pay out the claim, but from an insurance companys point of view, this is an exposure that should not have existed.


Yes, I guess I missed the point. That being said the shop owner was out of pocket quite a bit even though he had very good coverage.

 

[The Critic]

Originally Posted By: crazy8

Yes, I guess I missed the point. That being said the shop owner was out of pocket quite a bit even though he had very good coverage.


I was responding to Steve, not you.

 

[yonyon]

If you work with an indie shop, you can probably work something out where you get a reduced labor rate and a credit account with low or no interest. Your fleet is small, but it's large enough that an indie shop will want your business and want to keep you happy without any "guaranteed dollar amount." If you go that route, be sure that the outfit you work with is familiar with the type of truck you're running. If you establish a house credit account, be sure to pay on time every time. Late or inconsistent payments will make them wish you would just go away.

If your trucks are driving out all over the country it might make sense to go with a fleet management service. These deals can offer significant cost savings with no worries about what to do if a truck breaks down a great distance away, but you may see the trucks maintained to a slightly lower standard.

 

[SteveSRT8]

Originally Posted By: crazy8
Originally Posted By: SteveSRT8
Pay attention. Read the post I responded to carefully.

NO insurance carrier automatically pays just because the brakes were DIY repaired. They first have the vehicle examined by their 'expert'.

BTW, I've been running a fleet for over 40 years both for myself and others. Do you really think that I've been lucky enough to never go into litigation?


I can't say much here due to confindentaly agreement. I was hired by a defendents insurance co as a expert witness, the defendant had hired a man in his mid 40's an ex employee of mine who did not have any ASE certs. However he was a very capable mechanic, the fleet truck had a reported brake failure within 500 miles of a brake repair, actually a master cylinder failure after the rear brake shoes and wheel cylinders were replaced, the defendant and shops insurance company lost the case due to the fact they had hired a "non ASE certified" mechanic to perform the repairs. The jurys decision did not take the actual failure in to their decision, they were fixated on the "non ASE certified" mechanic, total [censored] in my opinion, but that is todays legal system.


Thank you for your reply. Anything is possible in a jury trial, but this is just one isolated instance.

I have also been in court a few times but don't have the time to type it all out here. But suffice it to say that while they may have tried to pin it on DIY repairs it didn't stick. I did have to hire a real NIASE cert guy to testify on my behalf.