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As you prepare your fleet for 2027, rising costs can make it harder to find savings without affecting another part of your operation. Keeping a vehicle longer, for example, may reduce spending in the short term but lead to higher operating costs as it ages. Understanding how these decisions affect your overall fleet can help you find savings that make sense beyond the immediate budget. In the Q3 fleet industry trends report, we look at the latest developments in the areas of fuel, acquisitions and fleet vehicle maintenance.
Fuel costs reshape budgets: Diesel climbed above $6 per gallon in Q3, while gasoline reached $4.478 per gallon. Higher prices are increasing the value of fuel efficiency and stronger fuel controls as fleets plan their 2027 budgets.
Vehicle costs influence acquisition: Elevated vehicle prices are prompting fleets to consider alternate original equipment manufacturers (OEMs) and smaller vehicles, while hybrids are gaining attention for their fuel efficiency.
Replacement decisions affect operating costs: Keeping vehicles longer can reduce near-term capital spending, but may increase vehicle maintenance costs and downtime, making replacement timing increasingly important.
Maintenance pressure remains elevated: Fleet vehicle maintenance costs continue to strain fleet budgets, while connected vehicle data and AI are creating opportunities to identify service needs earlier.
Fuel costs reshape budgets: Diesel climbed above $6 per gallon in Q3, while gasoline reached $4.478 per gallon. Higher prices are increasing the value of fuel efficiency and stronger fuel controls as fleets plan their 2027 budgets.
Vehicle costs influence acquisition: Elevated vehicle prices are prompting fleets to consider alternate original equipment manufacturers (OEMs) and smaller vehicles, while hybrids are gaining attention for their fuel efficiency.
Replacement decisions affect operating costs: Keeping vehicles longer can reduce near-term capital spending, but may increase vehicle maintenance costs and downtime, making replacement timing increasingly important.
Maintenance pressure remains elevated: Fleet vehicle maintenance costs continue to strain fleet budgets, while connected vehicle data and AI are creating opportunities to identify service needs earlier.
The third quarter of 2026 has put cost management firmly at the center of fleet decision-making.
Fuel prices have risen sharply, with U.S. diesel climbing to $6.53 per gallon (opens in a new tab) ($2.66/L in Canada (opens in a new tab)) for the week of September 21. At the same time, elevated vehicle and maintenance costs are adding to the pressure. Fleet leaders are looking harder for opportunities to save. Our strategic advisors are hearing about that pressure directly from clients, particularly as organizations begin planning their 2027 budgets.
That makes Q3 less about any single cost increase and more about how fleets respond when several factors converge. If you delay replacing vehicles to reduce capital spending, you may end up paying more in maintenance, downtime and fuel. And with fuel prices rising, decisions about which vehicles to operate and when to replace them matter even more.
In our Q3 fleet management trends report, we look at three areas shaping those decisions: fuel, acquisition and replacement strategy, and maintenance and downtime. Together, they point to a common challenge for fleet leaders heading into 2027: finding practical ways to control costs today without creating larger operating costs tomorrow.
Fuel volatility has been a recurring theme throughout 2026, but Q3 brought a significant change. The price increases fleets had been preparing for have arrived.
U.S. on-highway diesel reached $6.53 per gallon on September 21, up from $5.60 on August 31 (opens in a new tab). That represents a $0.93 increase in just three weeks and a whopping $2.55 spike compared with a year earlier.
For diesel-intensive fleets, increases of that size can quickly reshape operating budgets. Consider a 100-vehicle medium-duty fleet travelling 25,000 miles per vehicle annually and averaging 10 mpg. It would consume approximately 250,000 gallons of diesel each year. Every $1-per-gallon increase in diesel adds roughly $250,000 to its annualized fuel expense.
Regular gasoline has seen prices go on a similar skyward trajectory in Q3. As of September 21, the U.S. national average reached $4.478 per gallon. (opens in a new tab) That marks a $0.16 spike from just the previous week and nearly $0.37 up from the previous month. What is perhaps more eye-opening is that it now stands $1.30 higher than what it was at the same time in 2025.
We are seeing clients look more closely at , routing and vehicle selection as ways to offset costs. “Fleets can’t change gas prices, but they can influence fuel efficiency and how much their drivers travel,” noted Element Strategic Advisor, Ian O’Dowd.
The first step is understanding where the biggest opportunities actually exist. Bringing together fuel purchases, mileage, utilization, routes and telematics can help identify vehicles or operating groups consuming more fuel than expected. It can also reveal excessive idling, unnecessary mileage and driver behaviors that may increase consumption.
At today’s prices, even relatively small improvements have greater financial value. Route optimization is a good example. Reducing unnecessary mileage lowers the number of gallons a fleet needs to purchase while potentially reducing vehicle maintenance, tire wear and depreciation at the same time.
Fuel purchasing deserves similar scrutiny. Exception reporting can help identify transactions outside policy, higher-cost fueling locations and other preventable spending. Element’s found fleet managers were already paying greater attention to where drivers fuel their vehicles and whether they were using preferred networks. With rising gas and diesel prices, closing those gaps carries an even larger potential return.
Reforecast fuel rather than relying on a single 2027 price assumption. Plan for a few possibilities, including lower fuel prices, today’s prices and another potential spike.
Use fleet data to reduce fuel consumption and preventable spend. Look across mileage, routing, idling, driver behaviour, and fuel-purchase exceptions to identify where relatively small efficiency improvements can deliver the greatest savings at current prices.
As businesses begin planning and placing vehicle orders for 2027, costs remain a major consideration.
The average U.S. new-vehicle transaction price (opens in a new tab) reached approximately $50,089 in August. While availability has improved compared with recent years, fleets are still navigating high prices and uncertainty around model-year timing and specific vehicle availability.
We are seeing clients look for more ways to control those costs. “Vehicle pricing remains one of the biggest cost drivers for her clients, prompting some to consider alternate OEMs and opportunities to negotiate additional concessions,” said Strategic Advisor Sharlin Sebastian.
Deciding when to replace is also becoming more important as market conditions continue to change. Fleets can take advantage of strong resale values and current vehicle availability, particularly when future fuel prices and interest rates remain uncertain.
Finding does not always mean finding a lower price for the same vehicle. It can also mean reconsidering what vehicle is actually needed for the job.
“Some clients are considering alternate OEMs and opportunities to downsize pickups or larger vans,” Sharlin said. One client, for example, moved from small vans to Ford Maverick hybrids after its previous vehicle option became unavailable. Clients are increasingly open to considering these types of alternatives as they look for savings.
Hybrids are receiving particular attention because they can improve fuel efficiency without requiring the charging infrastructure and operational changes of a fully electric fleet.
The price of a new vehicle is only one part of the replacement decision. Keeping an older vehicle can mean spending more on maintenance, downtime and fuel. “I can point to one pharmaceutical sales fleet with an aggressive replacement cycle that has comparatively low maintenance spending,” said Strategic Advisor Melissa Groves. Regular replacement can also give fleets access to newer safety features and more fuel-efficient vehicles.
Stay on top of replacement cycles: Review aging assets to understand where replacing them could help lower vehicle maintenance and fuel costs.
Reconsider the replacement vehicle: Look at whether a smaller vehicle, different OEM, or hybrid could meet the job requirements at a lower acquisition or operating cost.
Stay ahead of vehicle ordering: Review MY2027 needs and available allocations now, while starting to plan for MY2028.
Fleet maintenance costs remained a significant challenge in Q3, adding another source of pressure to fleet budgets.
U.S. motor vehicle maintenance and repair prices were 5.2% higher (opens in a new tab) year-over-year in August. Our strategic advisors are seeing similar pressure with clients. “I haven't seen maintenance inflation come down, particularly as some fleets continue operating older vehicles,” Sharlin said.
Higher operating costs are also putting more pressure on fleet managers to demonstrate how they are controlling expenses. Some fleet managers are placing greater emphasis on quantifying savings for internal reporting as they prepare their budgets.
Keeping vehicles longer can lead to higher fleet maintenance costs and more downtime. When a vehicle is out of service, the impact can be even greater for service fleets that rely on specialized vehicles.
Downtime adds another cost. When a vehicle is in the shop, fleets also need to consider the work it can no longer perform. That can be especially important for specialized service vehicles that are difficult to replace temporarily.
This makes vehicle maintenance and replacement increasingly connected. The decision isn't simply whether a vehicle can remain in service, but whether continuing to repair it still makes financial sense.
Connected vehicle data and AI are also opening new ways to make maintenance decisions.
“We have one client who’s actively looking at the relationship between check-engine codes and the urgency of bringing a vehicle in for repairs,” said Strategic Advisor Ian O’Dowd.
Strategic Advisor Jennifer Bucheck is also seeing AI in fleet management begin to play a role in fleet vehicle maintenance decisions.
“I just had a client meeting where they demonstrated how they’re using AI to decipher whether to approve certain requests on each invoice that comes in,” she said. “It’s starting to be used in our maintenance space.”
Stay proactive with fleet maintenance: Address issues early to help prevent larger repairs and reduce unexpected downtime.
Use vehicle data to prioritize repairs: Maintenance history and connected vehicle data can help signal which vehicles need attention and how urgently.
Make better use of maintenance data in 2027: As connected vehicle data and AI tools improve, look for ways to turn maintenance information into faster, more proactive decisions. Element’s , for example, brings together connected vehicle data and maintenance events to help us identify the right service action earlier.
As you prepare your fleet for 2027, Q3 has shown how closely your cost decisions are connected. Higher fuel and maintenance expenses can put more pressure on your budget, while vehicle prices may require you to reconsider what you buy and when you replace. As Ian noted, fleet managers are under greater pressure to show leadership “what we’re doing to mitigate” rising costs. Element's team can help you identify savings opportunities and plan for 2027 with confidence.