An estimated 70 to 80% of management attention on fleet cost goes to the acquisition stage, yet that single event represents less than 1% of a vehicle’s operating life. Eugene Herbert, CEO of MasterDrive, explores this paradox in his Keynote Address at SA Auto Week 2026.

Look across the full lifecycle

Herbert notes that a vehicle earns or loses money at every stage from purchase to disposal.

“The Total Cost of Ownership (TCO) includes how the vehicle is driven, managed, maintained and ultimately valued to shape the final figure.

“Of the ten components of total cost of ownership, eight sit within the driver’s control, while acquisition and finance are fixed at purchase. This makes every day operating decisions the richest area for savings.”

Recognise the chain reaction

Even by successfully implementing one good driving habit in your fleet can create a chain reaction in the TCO.

“An example is good anticipation leads to smoother braking, which extends tyre and brake life, supports efficient energy use and reduces collision risk. This all adds up.

“To illustrate this, consider a vehicle with controllable operating costs of R20 000 per month. Less efficient driving behaviour can add around R2 750 to that monthly figure, an increase of roughly 14%. Over a year, this comes to R33 000 per vehicle, and across 100 vehicles the total reaches R3.3 million.”

Pair telematics with coaching

One way in which to ensure that good driving habits are picked up and maintained is by using telematics and training jointly.

“Telematics captures what happened, where and when. Training explains why it happened and shows drivers what to do differently.

“Measuring the results then completes the cycle and helps operators build continuous improvement. Technology provides the insight, and people turn that insight into performance. One without the other will not have the desired impact on TCO”

says Herbert.

Prepare for the EV transition

Electric vehicles may cost less to run, but other considerations must be factored in.

“Battery health and charging history both influence vehicle value, so good charging habits must be implemented from the start.

“Driver training supports transition. Learning on the job takes two to six months to reach consistently efficient EV driving, while structured training can shorten that to four to eight weeks. Experienced drivers gain from this training too, and their positive example influences colleagues”

says Herbert.

TCO relies on three forms of intelligence

Fleet excellence rests on three types of insight.

“Asset intelligence tells you what each vehicle costs. Driver intelligence shows why it costs that amount, by looking at driving behaviour. Future value intelligence looks ahead to what the vehicle will be worth when it is time to sell.

“When all three work together, total cost of ownership becomes a figure a fleet actively manages, instead of one it simply reports at the end of the year. The question every fleet should ask whether they are actively managing TCO or merely measuring it”

says Herbert.