Contract extensions risk higher SMR costs, says Epyx

Fleets extending replacement cycles in the wake of the coronavirus crisis need to consider additional service, maintenance and repair (SMR) costs, says Epyx.

The company, which provides the 1link Service Network SMR platform, says that the SMR profiles of many vehicles often involves considerable extra expense in years four and five.

Debbie Fox, commercial director or Epyx, said: “It seems like an obvious gain to defer replacing vehicles because it looks as though you are saving money when budgets are under pressure.

“However, the truth can be different. If you examine the cost of SMR over time, it tends to rise quite quickly as the vehicle ages.”

Leaseplan recently reported that contract extensions had increased by 50% since the Coronavirus outbreak.

According to industry SMR data, costs can spike around the point of the first MOT at three years, which is also where the warranty ends for most major manufacturers.

Fox said: “There are several reasons for this and the picture does vary quite considerably when you look at different models and mileages, but you may find that you will have to buy a complete set of tyres or pass the point at which a major scheduled service is due.”