Are you at a crossroad on whether to buy new trucks or used trucks for your trucking company? If YES, here are the pros and cons of new trucks vs used trucks.
One of the important activities you would have to carry out strategically when starting your trucking business is building your fleet. You have to make a choice of whether to build your fleet with brand new trucks, used trucks or leased trucks.
However, each option comes with its own advantages and disadvantages. This article seeks to provide you with extensive information on the upsides and downsides of buying used and new trucks especially for those who are trying to start their haulage businesses on a low budget. You can get as much as two or three used trucks at the same price that you would buy one new truck. So, you see why most people opt for used trucks.
However, buying used trucks can create a kind of ‘penny wise, pound foolish’ impact if not carried out carefully. You can discover that the costs of repairing your used vehicles with the constant mechanical faults that used trucks usually give could be extremely high that one would wish he had rather bought a new truck. Some other disadvantages of buying used trucks include-:
Buying New Trucks Vs Used Trucks – Which is the Best for your Trucking Company?
5 Disadvantages of Buying Used Trucks
a. Uncertainty of truck conditions-: You cannot be 100% certain about the condition of the vehicle you are buying. A truck that has already been used by another person can be in any condition and you can end up inheriting somebody else’s truck problems in a bid to purchase a cheap truck.
b. Low Performance-: The performance level of a used truck cannot be compared to those of new trucks. When you buy used trucks for your haulage business, expect break-downs from time to time and this may affect your business and drive customers away.
c. Lack of Warranties and Guarantees-: When you purchase new trucks, you would be given warranties or guarantees for some years which can help you to save some costs/business expenses but these warranties are mostly expired or invalid for used trucks.
d. Increase in running Expenses-: Because used trucks are prone to damages regularly, your costs of running your haulage business would increase.
e. Longevity-: Another disadvantage of buying used trucks is that when you buy used trucks for haulage business, you would soon find yourself needing new trucks after a short period. This is because the estimated useful life of used trucks is usually very low compared to new trucks.
Nevertheless, buying used trucks is not all bad and no good as buying used trucks has some benefits as described below-:
4 Benefits of Buying Used Trucks for your Trucking Company
- Cheaper Rates-: It is cheaper to buy used trucks and new entrants into haulage business can easily buy used trucks, use it to start the haulage business and then progress into buying new trucks eventually, when they have made enough profits.
- Low Usage Trucks-: The fact that it is tagged ‘used’ doesn’t necessarily mean that it was heavily used. You can find trucks that have been sparingly used by its previous owners and can even pass for new trucks. If you are lucky enough to get such bargains, it’s almost like buying a new truck.
- Valid Warranties-: You may also be lucky enough to find trucks whose warranties are still valid.
- Business Testing-: If you are the type who is still new in haulage business and wants to take things slow, used trucks give you the opportunity to start out very small so that you can easily opt out without losing too much money in case you don’t find the business satisfactory.
When buying a used truck, you must carefully consider some important factors which include-:
4 Factors to Consider When Buying a Used Truck
- Age of the truck-: You must know how long the previous owners have had the truck for. Anything beyond five years is not too good for your business.
- Mileage-: You must know how many miles the car has done. High mileage shows high rate of usage and wear and tear.
- Purposes-: You should also consider your purpose of buying the truck and whether or not you feel that a used vehicle would serve you better.
- Maintenance-: When you purchase used vehicles, you need to consider the costs of maintaining the vehicles. If you feel that it would be too expensive to maintain a used truck, then it is advisable to go for a new truck.
Advantages of Buying New Trucks
When you buy new trucks for your haulage business, these are some of the benefits that you would enjoy-:
- Reliability-: New trucks are reliable and you can’t expect it not to break down all the time and complete assignments as scheduled.
- Freedom of Choice-: Unlike buying used trucks where all you are concerned with is getting a good engine and low mileage trucks, when you buy new trucks, you have the freedom to make a lot of choices on things like color, specifications, interiors and exterior; you can even get manufacturers to make trucks to your specification if you wish.
- Warranty and Guarantees-: You have a valid warranty on new trucks which you can redeem at any time you want.
- Safety-: A new truck is safer for your drivers and business because all the parts are new and would work properly. Therefore, the chances of an accident occurring is greatly reduced.
- Fuel Efficiency-: A new engine would consume less fuel compared to an old engine.
- Vehicle Financing-: You can get lower financing rates from banks when you are buying new trucks.
- Maintenance-: You would also find it easier and cheaper to maintain a new truck.
Buying a new truck also has some disadvantages which include some of the following-:
- Price-: It is more expensive to buy a new truck than a used truck.
- Depreciation-: Trucks depreciate and whether you buy a new or used truck, you would find yourself needing another truck after few years.
- Insurance-: Insuring a new truck is costlier than insuring a used truck.
So, you see that each option has its own potential advantages and disadvantages therefore, you have to carefully weigh the advantages and disadvantages of each option before you make your choice.