NASHVILLE, TN – Velociti, a company that specializes in deploying and maintaining a wide array of vehicle technology, has unveiled a payment plan to help convince fleets to retrofit existing trailers with Meritor’s Tire Inflation System by PSI.
The deferred billing and extended payment plan – known as Instant ROI for ATIS (Automatic Tire Inflation System) — has even been structured so fleets begin to realize financial returns from the equipment before the first cheques are cut. Payments do not begin until all the trailers are retrofitted, and also include an allowance for replacement parts, telematics, and the underlying data plan.
While more than 50% of fleets now spec’ new trailers with Automatic Tire Inflation Systems, only a fraction of existing trailers are retrofitted, said Deryk Powell, Velociti’s president and Chief Operating Officer.
Automatic Tire Inflation Systems have been show to extend tread life, increase fuel economy, and reduce the need for roadside service calls linked to blown tires.
A company survey suggests that fleet managers are often unaware that retrofitting is an option, think they won’t own the trailers long enough to realize the returns, or can’t secure the required capital.
While the systems represent a significant expense up front, the savings are “absolutely” defined, Powell said. “It’s a huge opportunity in the market for fleets to recognize additional Return on Investment.”
A fleet of 1,000 trailers, for example, could be billed $100 per system per month for the first year, and then $12 per month for 36 months. The net savings realized from the systems, however, could reach about $3,000 per trailer in that timeframe.
The service relationship with Velociti can be ended at the end of the 36-month term.
The Meritor by PSI system also holds 70% of the market, he said, referring to why Velociti focused on this equipment. More than 1 million trailers have been equipped overall. “There’s not a Number 2 that’s close.”
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