When to Buy a New Truck for your Business
High usage commercial trucks and trailers can rack up a lot of miles each year, which means that maintenance work is inevitable. And over time, they’ll often become too expensive to maintain. As a business owner, you want to figure out how to get the biggest return on your investment. But that can be quite difficult when you’re deciding whether to keep on putting money into your old vehicles or to shop for a new commercial truck and trailer.
Timing a vehicle replacement for your business when it makes the most financial sense is crucial. You don’t want to replace your commercial vehicle too early, especially if a few repairs could add a year or two to its service life. That being said, you also don’t want to replace a truck too late when all the repair and maintenance costs have already piled up and robbed you of profit.
How do you know when it’s time to start reaching out to commercial box truck dealers? Here are three tips to help you figure it out:
1. When You Want To Take Advantage Of An Advanced Trucking Technology
Who doesn’t want to get their hands on a truck that improves fuel efficiency, reduces diesel emissions, and improves navigation? The latest trucking technology will always be designed to make lives better, including reducing overall costs in operating your commercial vehicles.
Suppose it’s been decades since your last purchase of a new truck. In that case, you might be better off hitting your nearest commercial box truck dealers and drive off with a spanking new box truck, so you can immediately reap the benefits of the latest trucking technology.
2. When Your Unit No Longer Meets Regulations
If your business involves a lot of interstate movement of goods, you’re eventually going to run into California’s strict diesel truck regulations for vehicles coming from other states. The California Air Resources Board (CARB) requires older trucks to be upgraded to bring them up to code, or else truckers will receive hefty penalties.
These upgrades might involve spending $16,000 to $18,000 to install an emission compliance filter. Buying a new truck with a compliant engine makes more sense as it can help you reduce overall costs, on top of the benefits that come with a brand new vehicle.
3.When The Truck Is Costing You More Than The Average Vehicle Per Mile
When a truck’s engine goes over 500,000 miles, you’ll start to see truck maintenance costs surge, especially when engines and transmissions will need overhauls or total replacements. The worn condition and diminished performance of your trucks could lead to frequent roadside emergencies contributing to lost productivity and revenues.
If your business depends on transportation so much that it directly affects your bottom line, you don’t want to spend a lot of time and money on repairs. Analyze how much you are spending on maintenance costs every month. If it’s more than $0.13 to $0.14 per mile, it’s better to jump the gun and replace your commercial truck because those numbers will add up quickly, especially with older trucks.
In summary, it is a good idea to buy a new truck for your business when you want to reap the latest trucking technology benefits, when your old truck no longer meets regulations, and when it costs you more to operate it.
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