In today’s operating environment, not all truck operators want new trucks in their fleet. Often buying used trucks allow independent operators and fleets the opportunity to go after business that may not provide standard operating margins.
Financing used trucks usually provides an owner with a much lower monthly payment than an owner financing new trucks. Truck fleets and operators can lower their liabilities and keep more of their working capital, said Jake Civitts, director of used equipment for PACCAR Financial (PFC).
But before buying used trucks, Civitts advises all interested fleets and operators to do their homework and know as much as possible about a truck’s history. With the Federal Motor Carrier and Safety Administration's Compliance, Safety, and Accountability program requiring truck operators to be much more vigilant about the safety of the equipment they operate, the days of buying used trucks nearly sight unseen are over. Consider buying used premium brand trucks from a local dealer or from a used truck center established by captive financing companies, Civitts added.
“Kenworths and Peterbilts are known for their quality and long life," he said. "More than 28,000 used Kenworth and Peterbilt trucks have been sold by PFC at its three used truck centers in Hickory Hills, Ill., Spartanburg, S.C., of the West Valley, near Salt Lake City, Utah, since 2000. PFC used truck centers have a large inventory of trucks viewable on the PACCAR Financial Used Truck Center website. Buyers can search and compare several trucks all with a few clicks of a computer. We’re a one-stop used truck center with great financing packages. We offer an excellent selection of premium used trucks and we can finance qualified owner-operators and fleets at each location."
But perhaps more important than choice is the peace of mind that comes from buying used trucks from a trusted seller, Civitts said. Before any truck goes on the lot for retail sale, PFC conducts a thorough 105 point inspection process to verify each vehicle is ready to perform. "Our inspection process helps ensure the second owner of that vehicle will be as pleased as the original owner," Civitts said.
But perhaps more important than choice is the peace of mind that comes from buying used trucks from a trusted seller, Civitts said. Before any truck goes on the lot for retail sale, PFC conducts a thorough 105 point inspection process to verify each vehicle is ready to perform. "Our inspection process helps ensure the second owner of that vehicle will be as pleased as the original owner," Civitts said.
Civitts also offers these five tips to truck operators and fleets when buying used trucks:
With state and federal roadside inspectors looking closely at equipment, particularly for mechanical conditions that would likely cause an accident or breakdown, Civitts said truck fleets and operators have to be much more vigilant about inspecting equipment and checking maintenance records. If you're not fully comfortable with the idea of buying a truck from someone without inspecting it first, Civitts says don't. He recommends conducting a full inspection before buying, paying particular attention to the truck's brake systems, coupling devices, exhaust systems, frames, fuel systems, lamps, electrical systems and batteries, steering mechanisms and king pins, suspension, tires, wheels, rims and hubs. Use the same pre- and post-trip inspection sheets you or your drivers use and look for conditions that could affect your safety score if you were operating the truck that same day. If possible, ask to see recent inspection reports or maintenance records associated with the truck.
Based on the experiences of PACCAR Financial’s used truck centers, here are four key specs that drive a used truck's value, making it more attractive and productive and lowering its operating cost:
Transmission - A convertible 9/13-speed transmission, a manual 13-speed transmission or a manual 18-speed transmission is most appealing. According to Civitts, manual transmissions that offer shorter shifting ranges provide more operational flexibility and can add as much as $4,000 to the value of the truck.
Interior - Lower quality interiors may seem cost-effective, but they can show considerable wear. Used truck buyers should look for premium interiors. Premium interiors, like the Platinum interior package on Peterbilt trucks and the Diamond VIT interior package on Kenworth trucks, not only look good, but also hold more value and can make for a more comfortable and productive working environment.
Fifth wheel - An airslide fifth wheel will offer you more flexibility for your operation by making it easier for your truck to haul different trailers with varying weight characteristics.
Aerodynamic fairings - A truck with full fairings is critical for buyers pursuing EPA SmartWay certification. Civitts said aerodynamic fairings make a truck much more fuel efficient, lowering your operating costs.
Pay attention to the type of engine and emission control system in the truck. If the truck is equipped with a diesel particulate filter, check its current condition and whether it's been cleaned at regular intervals. Even if you won't be operating your used truck in California, consider choosing used trucks that meet California Air Resources Board requirements over ones that don't. Trucks with aerodynamic fairings will save you money on fuel costs over ones that don't. Plus, your trucks become eligible for EPA SmartWay certification, which may be required by your customers.
Until recently, the model year was the main factor in establishing a used truck’s value. That made sense; truck components were fairly similar from year to year. The older the truck, the greater its maintenance needs. So a newer used truck was almost always worth more than an older one. That’s changed in the last few years; mileage has become the most important indicator of a used truck’s value. Thanks to new emissions equipment, different model year trucks are not quite comparable. Today, the first question you should ask about a used truck is, “What’s the mileage?” The most desirable, highest-value used trucks will have 300,000 to 400,000 miles on them. Lower-value, but still desirable trucks will show 400,000 to 500,000 miles.
When buying used trucks based upon financing, many truck and fleet owners choose a lender based solely on the interest rate. While the rate should be competitive, consider whether the lender is willing to work with you on such things as payment schedules, particularly if your company's business is cyclical. age?” The most desirable, highest-value used trucks will have 300,000 to 400,000 miles on them. Lower-value, but still desirable trucks will show 400,000 to 500,000 miles.
Also consider whether the lender is knowledgeable about trucks and the trucking industry. A lender that understands trucks can be in a better position to determine a truck's true value and assist your operation if additional financing is needed.