The Real Cost Comparison: Embedded Vehicle Connectivity vs. Aftermarket Hardware

Fleet operating costs have climbed roughly 20% since 2020, and new vehicle costs are up about a third over the same period. That combination is why more than 3 out of 4 of fleet leaders are prioritizing cost savings this year. Teams are being asked to do more with less, and the visibility tools many fleets have leaned on for over a decade — aftermarket telematics — are increasingly seen as adding to the cost problem rather than solving it.

This tension was the center of a conversation with Motorq, Toyota Data Solutions, and the fleet team at The Church of Jesus Christ of Latter-day Saints, which manages roughly 12,000 vehicles nationwide. These organizations weigh in on the cost comparison of hardware-based telematics versus OEM-direct vehicle connectivity.

Looking beyond the sticker price of aftermarket hardware

Most fleets evaluate telematics solutions based on the figures that appear on the technology contract. The upfront cost includes the price of device procurement, shipping, and the recurring monthly subscription.

What’s easily overlooked are the indirect costs: installing devices, handling device failures, dealing with asset downtime, and coordinating device swaps every time a vehicle is added or retired. In a 2026 Motorq-commissioned study of 328 fleet operators, 2 out of 3 ranked these factors as the top cost in their current telematics setup.

The indirect costs can compound quickly for fleets that aren’t centralized in one location. Vehicles have to be scheduled into a depot, uninstalled, reinstalled, and tracked through the process, and every step is a chance for something to fail or fall behind schedule. 

OEM connectivity enables fleet managers to lower TCO

Embedded vehicle connectivity removes the procurement costs entirely, since there’s no device to purchase. While the recurring subscription cost doesn’t disappear, most fleets expect to spend less overall. In the same Motorq-commissioned study, 60% of fleet operators and executives agreed that OEM connectivity generally costs less than aftermarket hardware.

Indirect costs are also cut down with OEM connectivity: no more hardware shipments to wait on or truck rolls to schedule. Because vehicles connect through built-in modems, they start streaming data in days instead of weeks — drastically minimizing asset downtime.

How OEM connectivity located a stolen vehicle when aftermarket telematics couldn’t

In one story shared during the conversation, Mark Dibb, Global Fleet Planning and Acquisitions Manager at The Church of Jesus Christ of Latter-Day Saints, shared how a stolen Ford F250 worth $60,000 to $70,000 was located using OEM connectivity. In the past, thieves would frequently rip out aftermarket trackers. But because the vehicle was enabled with built-in OEM connectivity, the asset was quickly located at a storage facility and recovered within 24 hours. For a self-insured fleet, this recovery was financially significant and helped them avoid a total loss.

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Where to start

The fastest way to see where your own fleet stands is a simple VIN-level check: discover how many of your vehicles are already connectable through OEM-direct connectivity today by speaking with a Motorq expert.

For the entire conversation with Toyota Data Solutions and the Church of Jesus Christ of Latter-day Saints fleet team, check out the full webinar: Tackling Rising Costs: Why Fleets Are Turning to Embedded Telematics.