At a certain point in its growth, a company is moving enough goods in and out to justify operating its own trucks rather than utilizing outside carriers. The overhead of constantly communicating with the hauler, creating shipping labels, paying fees, and getting shipments logged in and out with a driver makes it a far better use of all resources to hire some drivers, make additions to the insurance policy, and head to the truck dealer.
But when this decision is made in the heat of rapid growth, it can be done rashly or recklessly. A manager’s first instinct when there is an equipment need is to go buy a new one. And this is the only way to handle things like furniture, copiers, tools, and most of the other routine requirements of running a company.
But trucks are a very different situation. We’ve all heard the old saying that a car loses value as soon as you buy it and drive it off the lot. And it’s true. A vehicle that is just a few years old has lost a huge percentage of its value.
Who eats that? The owner, of course. Who gains that? In a way, the new buyer does.
And these factors don’t just hold true with the ol’ family sedan. They go for everything from farm tractors to taxicabs and, of course, commercial trucks.
This doesn’t mean that you go out and buy trucks that are chugging along on their last legs. It’s just important to understand before you shop that such salvage yard pieces are not the only used trucks on the market, and when you find the better ones, you can save money.
Why are these units on the market? Understanding these reasons can help you save money as you field a fleet.
The “Lease” They Can Do
As you begin seeking trucks for sale, you may find quite a few two- and three-year old units with rather low mileage. Where are these rigs coming from? Why didn’t their previous owners keep them?
The answer is leasing. Many heavy trucks are leased when new. They are driven a very modest number of miles, then traded in for a new lease. Firms do this for a variety of reasons. Sometimes they want only very new trucks for image purposes; in other cases they have episodic work that won’t require long-term ownership. Whatever their rationale, they are essentially eating your depreciation for you. You end up with a very new truck in very good condition at a surprisingly competitive price.
The Ebb and Flow of Business
Let’s face it. Sometimes firms fail. Maybe they caught an economic downturn or suffered a supply shock.
Maybe they spent too much by buying brand-new trucks.
Regardless of the origin, the result is the same. Good, late-model vehicles are there for the purchasing, often at very good prices and frequently in significant numbers from the same source, permitting you to buy a number of identical trucks without having to custom-order them. (Again, the previous owner did that for you!)
Their Own Expansion
This step is the very one you actually hope to achieve yourself. Firms may progress from using outside couriers to using pickups, then straight trucks, then 18-wheelers as their volume of sales expands. They may realize a little loss in selling quickly, but it’s still less costly than sending two small trucks for everything when one big one could handle it.
If they’re fortunate enough to make two of those transitions in rapid succession, you can pick up briefly-owned, outgrown trucks as they move up a size. And with any luck at all, you’ll be next to do the same.