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Matrix study: buying remains cheaper than leasing for Takoma Park fleet; staff advised to strengthen replacement planning
Summary
A Matrix Consulting Group study presented to the Takoma Park City Council found purchasing has lower total cost of ownership than leasing for the city’s 83 vehicles and recommended keeping an ownership model while improving replacement planning, utilization policy, and EV readiness.
Matrix Consulting Group told the Takoma Park City Council that purchasing municipal vehicles remains the most cost-effective approach for the city’s 83-vehicle fleet, though it recommended several changes to reduce cost spikes and speed EV adoption.
“Vehicle purchasing remains the recommended option for the city,” said Katherine Vigneault, project manager for the Matrix review, summarizing the firm’s total-cost-of-ownership analysis. The consultants compared open- and closed-end leases and solicited quotes from national fleet providers; in every tested scenario the purchase option produced lower lifetime cost than leasing, the presentation showed.
The consultants reported Takoma Park’s fleet averaged 5.5 years of age, slightly younger than a typical municipal average, and noted a procurement “spike” in 2025 when 20 assets were replaced. To smooth future spikes and lower the long-term TCO they recommended a 20-year replacement plan, accumulation of capital for replacement, adoption of a utilization policy to rotate high- and low-mileage assets, and continued operation of the city’s in-house maintenance shop.
Matrix also examined leasing’s operational tradeoffs. “Leases can reduce downtime and standardize fleets,” Ruth Olsen said, “but leasing carries greater financial risk and less operational control.” The consultants warned that leasing can limit flexibility for specialty vehicles and shift administrative effort from purchasing to contract management.
On electrification, Matrix recommended steps to prepare the city regardless of ownership model: advance charging infrastructure planning, pursue rightsizing and standardization where feasible, and include EV considerations in replacement decisions so technology can be introduced without substantially raising TCO.
Council members pressed the consultants on specific implementation details: whether utilization policies should include swapping vehicles among take-home patrol cars and how replacement timing should adjust for EV maintenance profiles. Vigneault said EV maintenance tends to be lower for light-duty vehicles and that replacement schedules should be adjusted using peer data and ongoing reassessments.
City staff said they will post the report and provide written replies to outstanding technical questions within 48 hours. Councilmembers asked staff to use the study to support steady funding for equipment replacement and to return with recommendations on implementing a utilization policy and the proposed replacement fund.
