Are you at a crossroads to buy new trucks or used trucks for your trucking business? If YES, here are the pros and cons of new trucks versus used trucks.
One of the important activities that you will need to do strategically when starting your trucking business is to build your fleet. You have to make a choice: build your fleet on new trucks, used trucks or leased trucks.
However, each option has its own pros and cons. This article aims to provide you with comprehensive information on the pros and cons of buying used and new trucks, especially for those who are trying to start their trucking business on a low budget. You can get up to two or three used trucks for the same price as a new truck. So you see why most people choose used trucks.
However, buying used trucks can create a kind of ” Penny wise, pound stupid ‘shot if not done with care. You may find that the cost of repairing your used vehicles with the constant mechanical breakdowns that used trucks usually give can be extremely high if he prefers to buy a new truck. Other disadvantages of buying used trucks include:
Buy new trucks versus used trucks. Which is best for your shipping company?
5 Disadvantages of Buying Used Trucks
a. Uncertainty about the condition of the truck -: You cannot be 100% sure of the condition of the car you buy. A truck that has been used by someone else can be in any condition, and you may end up inheriting someone else’s truck problems in an attempt to buy a cheap truck.
b. Poor performance – . The level of performance of a used truck is not comparable to that of a new truck. When buying used trucks for your carrier, expect occasional breakdowns that can impact your business and drive customers away.
vs. No Warranties and Warranties . When purchasing new trucks, you will be provided with multi-year warranties or warranties to help you save on certain expenses/sales fees, but these warranties are mostly outdated or invalid for used trucks.
D. Increase in operating costs – : As used trucks are subject to regular damage, your transport costs will increase.
e. Sustainability – . Another disadvantage of buying used trucks is that when you buy used trucks for transporting goods, you will soon find that you will need new trucks after a short time. Indeed, the estimated useful life of used trucks is generally very low compared to new trucks.
However, buying used trucks is not so bad and useless because buying used trucks has some advantages as explained below:
4 Benefits of Buying Used Trucks for Your Trucking Business
- Cheaper rates – : cheaper to buy used trucks and new entrants in the transport sector. it’s easy to buy used trucks, use them to start trucking, and then eventually move on to buying new trucks when they earn enough.
- Low Utilization Trucks – . The fact that it is labeled as used ‘ does not necessarily mean that it has been heavily used. You can find trucks that have been used sparingly by previous owners and may even pass for new trucks. If you happen to get such an offer, it’s like buying a new truck.
- Valid warranties -: You may also be lucky enough to find trucks that are still under warranty.
- Commercial tests – : . If you’re the type of business that’s still new to trucking and want to go slower, used trucks give you the opportunity to start small. that you can easily give up without losing too much money if you don’t find the company satisfactory.
When buying a used truck, you should carefully consider some important factors, including:
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4 Factors to Consider When Buying a Used Truck
- truck age -: You need to know how long the previous owners have had the truck. Anything over five years old is not good for your business.
- Mileage -: . You need to know how many kilometers the car has traveled. A high mileage indicates a high level of use and wear.
- Goals -: You should also consider why you are buying a truck and whether you think a used vehicle will serve you better.
- Maintenance – . When buying used cars, you need to consider the cost of maintaining them. If you feel that it would be too expensive to maintain a used truck, it is recommended that you upgrade to a new truck.
Benefits of Buying New Trucks
When you buy new trucks for your trucking business, you get the following benefits:
- Reliability -: New trucks are reliable and you can’t expect them to break down all the time and complete tasks on time.
- Freedom of choice -: Unlike buying used trucks, where all you care about is getting a good engine and a small truck, when you buy a new truck, you have the freedom to choose: the color, the specifications, the interior and exterior; You can even ask manufacturers to produce trucks to your specifications.
- Warranty and Warranties -: you have a valid warranty on new trucks that you can use at any time.
- Security – : A new truck is safer for your drivers and your business because all parts are new and will work properly. Therefore, the likelihood of an accident is significantly reduced.
- Fuel consumption -: the new engine will consume less fuel than the old engine.
- Vehicle financing – . When buying new trucks, banks can get lower financing rates.
- Maintenance – : It will also be easier and cheaper for you to maintain a new truck.
Buying a new truck also comes with a number of downsides, including some of the following:
- Price -: buying a new truck costs more than buying a used truck.
- Depreciation-: Trucks depreciate, and whether you’re buying a new or used truck, you’ll need another truck in a few years.
- Insurance -: New truck insurance is more expensive than used truck insurance.
Thus, you see that each option has its own potential advantages and disadvantages, so you should carefully weigh the advantages and disadvantages of each option before making your choice.
