TCR tracking: Why Total Cost of Repair has never been more important to shop success

TCR is a vital strategic metric, and focusing on it can help fleets streamline operations, slash costs, and improve customer service. By tracking TCR and addressing a wider array of costs, fleet managers can save money and improve operational efficiency. 

What is TCR and why does it matter?

Total cost of repair falls under three broad headings: direct, indirect, and hidden costs. Direct costs include parts, paint supplies, diagnostics, labor, and other shop fees. Indirect costs encompass vehicle downtime, rentals, delivery delays, towing, driver time, and administrative overhead. Hidden costs can come from inflated estimates, unnecessary repairs, and fraud.

Indirect and hidden costs can add up, accounting for 30-40% additional costs on top of direct costs. Considering the 34% spike in repair and maintenance costs since 2020, according to the American Transportation Research Institute, it has never been more important for fleet managers to understand all the contributors to TCR. For example, the most significant driver of TCR is downtime. When vehicles are off the road, companies don’t just accrue storage, rental, and administrative costs—they also lose revenue and risk damaging customer satisfaction due to service delays. The twin financial blows of rising costs and sinking revenue demonstrate why high TCR is such an urgent problem for fleets and why getting it under control is a strategic necessity.

Managers must adopt a comprehensive approach to identifying and addressing the drivers of TCR. This means tracking shop performance; leveraging data and telematics; and considering all the direct, indirect, and hidden costs they’re paying. By making the reduction of TCR a core strategic priority, fleet managers will be able to make smarter decisions about repairs and optimize their operations.

Developing an optimized repair strategy

When fleet managers know how to measure TCR, they will be able to develop a repair strategy to improve operations and eliminate unnecessary expenses. Elements of this strategy should include: centralizing approvals to reduce delays and control costs; consolidating vendors to standardize pricing and improve quality; and shortening repair cycles to minimize downtime and associated costs (such as rentals and storage).

A critical component of a more strategic approach to repairs is the use of telematics and digital platforms to predict failures and schedule preventive maintenance. When fleet managers don’t approach maintenance proactively, they increase the risk of a catastrophic failure that will keep vehicles stuck in the shop. Beyond all the indirect costs associated with major repairs—such as increased downtime—failures can pose safety risks and cause irreparable damage. It’s no wonder that in its 2025 Annual Market Pulse Report, Element Fleet Management found that 57% of fleets are already using telematics, which can identify mechanical problems before they become costly failures.

An effective repair strategy must account for all the costs that can accrue in the repair process. This means closely monitoring all these costs—from overspending on repairs to administrative overhead—and developing a strategy around their mitigation. TCR is a metric that reveals the whole financial picture for fleet managers, which allows them to approach operations more strategically and drive down costs across the board.

Tips and tools for reducing TCR

Reducing the total cost of ownership is a top priority for fleet managers in 2025, and cutting TCR is a major part of this initiative. Beyond the use of telematics to monitor vehicle health and schedule preventive maintenance, fleet managers can use centralized digital platforms to create a more effective repair ecosystem. Centralization is essential to reduce TCR, as it enables managers to take an integrated view of their operations, networks, and vehicles.

Gartner reports that the adoption of fleet management software is mainly driven by inefficiency and limited functionality with current methods. It’s no surprise that digital adoption rates are surging. The commercial vehicle telematics market was valued at over $61 billion in 2024—with a projected compound annual growth rate of 13.8% between 2025 and 2030. Digital platforms centralize approvals and vendor management, which can reduce cycle times substantially. This doesn’t just mean a reduction in indirect costs such as rental fees—it also means greater vehicle utilization, which increases revenue.

Fleet managers should also keep track of shop performance by benchmarking repair times and outcomes. It may make sense to consolidate vendors as well, which can standardize pricing, improve the quality of repairs, and lower hidden costs.

To get TCR under control, fleet managers must first be capable of identifying all the costs that can pile up in the repair process. They can then use this information to develop a strategy for reducing TCR and driving fleet optimization. There are many resources for doing so, such as vehicle telematics and centralized digital platforms that make approvals easier and faster, provide operational visibility, and help managers stay on top of maintenance. A focus on TCR will reframe how fleet managers approach the entire repair process, and this will enable them to control costs and maximize productivity.