Buy A New Van Right Off the Bat?
- Thread starter Phoenix4774
- Start date
There are some great answers here! Great question too!
There are many who would not consider buying 'used', but I sure wouldn't consider buying new unless you absolutely know this business, your carrier, your vehicle requirements, etc.
As soon as you drive it off the lot, you've lost money if you buy new. The miles an expediter puts on his vehicle has an unkind effect on the value of the vehicle after only a short time.
Another thing to consider is insurance coverage - when you buy new, even if your vehicle is insured for what you paid for it - after an accident (God forbid!), if the insurance company deems the vehicle to only be worth a fraction of that amount, that is all you're going to get for it if it is a total loss. (Unless you spend the money on 'gap' insurance right off the bat).
Even though any repairs might be covered for the first however many miles or months on a new vehicle - you are usually obligated to take it to certain repair facilities in order to make good on that coverage - when you're traveling all around, is one of those repair facilities going to be nearby? Will the one that happens to be nearby when you break down know what they're doing? Will you need to pay to have it towed? What if the parts need to be ordered and they need the vehicle for a few days? Will they pay to put you up in a motel for a few days? Will they fight with you and say that whatever is wrong with your vehicle happens to be one of the things that isn't covered, or find a reason why it can't be covered this time? If you happen to break down near an inept repair facility and they screw up and subsequently cause something else to go wrong which happens to NOT be covered, is the next place you're close to going to repair the repair? Are they going to pay the cost if your carrier bills you for having to remove your load onto another truck? Will they pay for lost income potential during the days you aren't available to carry freight while they fix your vehicle? What about that lucrative load opp you just lost as you were being towed down the highway? And don't kid yourself that these things don't happen with a new vehicle.
It's so nice to think about new and shiny and feel like a million bucks picturing yourself as a successful expediter in a coveted brand new vehicle, but IMHO, it is SO much nicer to see a plus sign on the bottom line of your monthly P&L statements when you don't have a truck payment on the expense side coming out every month, for possibly years. Every penny you earn in revenue that does not have to be allocated to an expense, is money in YOUR bank, it is your income. There are enough money-grabs in this business trying to transfer your revenue into their cash register without a truck payment on top.
There are many who would not consider buying 'used', but I sure wouldn't consider buying new unless you absolutely know this business, your carrier, your vehicle requirements, etc.
As soon as you drive it off the lot, you've lost money if you buy new. The miles an expediter puts on his vehicle has an unkind effect on the value of the vehicle after only a short time.
Another thing to consider is insurance coverage - when you buy new, even if your vehicle is insured for what you paid for it - after an accident (God forbid!), if the insurance company deems the vehicle to only be worth a fraction of that amount, that is all you're going to get for it if it is a total loss. (Unless you spend the money on 'gap' insurance right off the bat).
Even though any repairs might be covered for the first however many miles or months on a new vehicle - you are usually obligated to take it to certain repair facilities in order to make good on that coverage - when you're traveling all around, is one of those repair facilities going to be nearby? Will the one that happens to be nearby when you break down know what they're doing? Will you need to pay to have it towed? What if the parts need to be ordered and they need the vehicle for a few days? Will they pay to put you up in a motel for a few days? Will they fight with you and say that whatever is wrong with your vehicle happens to be one of the things that isn't covered, or find a reason why it can't be covered this time? If you happen to break down near an inept repair facility and they screw up and subsequently cause something else to go wrong which happens to NOT be covered, is the next place you're close to going to repair the repair? Are they going to pay the cost if your carrier bills you for having to remove your load onto another truck? Will they pay for lost income potential during the days you aren't available to carry freight while they fix your vehicle? What about that lucrative load opp you just lost as you were being towed down the highway? And don't kid yourself that these things don't happen with a new vehicle.
It's so nice to think about new and shiny and feel like a million bucks picturing yourself as a successful expediter in a coveted brand new vehicle, but IMHO, it is SO much nicer to see a plus sign on the bottom line of your monthly P&L statements when you don't have a truck payment on the expense side coming out every month, for possibly years. Every penny you earn in revenue that does not have to be allocated to an expense, is money in YOUR bank, it is your income. There are enough money-grabs in this business trying to transfer your revenue into their cash register without a truck payment on top.
Last edited:
Hyfield Trucking
833-493-4353
Advertiser
Driving opportunities are available for motivated team drivers wanting to see the country and earn an income at the same time with FedEx Custom Critical and Hyfield Trucking.Hyfield Trucking proudly services FedEx Custom Critical with trucks and drivers. At this time, we are looking for established teams (2 people, no solo drivers) to drive one o ... Apply Today!
Guess I'll chime in now...with my near 10 years experience in this biz....
Things have changed since I've entered the fray that is for sure..there was a time a caveman could do this....(I mean just look at Turtle..
)
It is said the learning curve ALWAYS takes a turn thru the wallet..and that is certainly true...
I know in these difficult economic times having a bankroll is near impossible....for a lot expediting is their desperate grasp to employment.
TOTAL commitment is needed...I've seen guys with a bankroll still wash out..they just did not get it...they expected things to be fair and just out here...it is NOT...you will get screwed with(whether real or perceived), no matter what carrier you finally chose...you live with what you can handle on the BS meter.
You are going to feel pressure from all sides...family, carrier and most importantly yourself...you'll need a lot of inner fortitude.
I'd concur with my esteemed colleagues...and go with the used van first....IF you can afford to do this?
Driving for a fleet owner the chances of it tasting sour is great...and you won't make a lot as was said...Besides you won't have the challenge of having something to lose and the motivation is not there to stick it out.
Good Luck on whichever way you chose...
Ken aka OVM...
Things have changed since I've entered the fray that is for sure..there was a time a caveman could do this....(I mean just look at Turtle..
)It is said the learning curve ALWAYS takes a turn thru the wallet..and that is certainly true...
I know in these difficult economic times having a bankroll is near impossible....for a lot expediting is their desperate grasp to employment.
TOTAL commitment is needed...I've seen guys with a bankroll still wash out..they just did not get it...they expected things to be fair and just out here...it is NOT...you will get screwed with(whether real or perceived), no matter what carrier you finally chose...you live with what you can handle on the BS meter.
You are going to feel pressure from all sides...family, carrier and most importantly yourself...you'll need a lot of inner fortitude.
I'd concur with my esteemed colleagues...and go with the used van first....IF you can afford to do this?
Driving for a fleet owner the chances of it tasting sour is great...and you won't make a lot as was said...Besides you won't have the challenge of having something to lose and the motivation is not there to stick it out.
Good Luck on whichever way you chose...
Ken aka OVM...
guido4475
Not a Member
Guess I'll chime in now...with my near 10 years experience in this biz....
Things have changed since I've entered the fray that is for sure..there was a time a caveman could do this....(I mean just look at Turtle..
It is said the learning curve ALWAYS takes a turn thru the wallet..and that is certainly true...
I know in these difficult economic times having a bankroll is near impossible....for a lot expediting is their desperate grasp to employment.
TOTAL commitment is needed...I've seen guys with a bankroll still wash out..they just did not get it...they expected things to be fair and just out here...it is NOT...you will get screwed with(whether real or perceived), no matter what carrier you finally chose...you live with what you can handle on the BS meter.
You are going to feel pressure from all sides...family, carrier and most importantly yourself...you'll need a lot of inner fortitude.
I'd concur with my esteemed colleagues...and go with the used van first....IF you can afford to do this?
Driving for a fleet owner the chances of it tasting sour is great...and you won't make a lot as was said...Besides you won't have the challenge of having something to lose and the motivation is not there to stick it out.
Good Luck on whichever way you chose...
Ken aka OVM...
Ken, I am almost shocked, speechless....If my memeory serves me correcty,this is the longest reply I have ever seen you post !! lol....
Yeah well..it sort of shocked me too when I hit reply and it posted..I thought holy cow...I am turning into a Turtle...*LOL* think I have hardening scales forming on my back...
ChrisGa23
Expert Expediter
I lease my truck and thank god I did, I'd be broke if I owned this truck. All my maintenance is covered in my lease, and yes the whole lease payment is a writeoff
I just think how I'd be going broke if this truck wasn't a lease
where you find a lease that pays your maintenance ?
Dakota
Veteran Expediter
Penske, ryder, idealease, paclease etc etc
Mine is with Penske and I wouldn't recommend a lease for an expeditor, way too expensive and you can't modify the vehicle. I pay a base lease and then 8 cents a mile which covers all maintenance, fluids, tires, 26 washes etc. I pay for Diesel that is it.
For me it works, as I do local work within 100 miles of Fort Wayne. I would consider buying but after all is said and done I think the lease works for me and the entire lease payment and mileage fee is a tax deduction. The unknown is the cost of breakdowns, even two of the same model truck will have different service records. The next truck I get won't be a used lease but a new lease, so I will know how it was taken care of for the first 160k, unlike the truck I have now.
Hyfield Trucking
833-493-4353
Advertiser
Driving opportunities are available for motivated team drivers wanting to see the country and earn an income at the same time with FedEx Custom Critical and Hyfield Trucking.Hyfield Trucking proudly services FedEx Custom Critical with trucks and drivers. At this time, we are looking for established teams (2 people, no solo drivers) to drive one o ... Apply Today!