Rising Fuel and Financing Costs Put Pressure on Fleet Operations
The Middle East conflict is driving up oil and gas prices, with fuel costs nearing $4 per gallon. This is adding pressure to operating expenses for fleets and keeping inflation elevated, which means interest rates are likely to stay higher for longer.
Higher rates are pushing up borrowing costs for vehicles and equipment, making fleet replacement and expansion more expensive. At the same time, rising fuel prices are squeezing margins across the board.
On the positive side, market conditions remain fairly stable. Used vehicle prices are seeing a seasonal lift, helping support resale and trade-in values. Credit availability is still relatively strong, giving fleets continued access to financing despite higher rates.
The labor market also remains steady, with low layoffs, which supports overall demand and business activity.
In short, fleets are facing cost pressure from fuel and financing, but stable credit and solid used vehicle values are helping offset some of the impact.
Downtime Is the New Fleet Crisis — and It Starts Inside Your Operation
Vehicle supply and resale values are relatively stable heading into 2026, but keeping vehicles on the road has become the real challenge for fleets.
U.S. Auto Sales Hold Steady but Growth Remains Limited
U.S. new-vehicle sales in March 2026 are expected to stay steady at about 15.8 million (annual rate), similar to recent months. However, that’s down from last year, when sales were boosted by buyers rushing ahead of tariffs.