How new to buy?

brokcanadian · Sep 12, 2016

So my position on newer vehicles is well known, I can fix anything myself and find it unessessary.

This will be useful to newbies as well.

I'm doing some side work and they're trying to tell me that you can get more business off the load boards with newer equipment. I read that as the business owner wants me but wants a fleet that looks better on paper.

Is it really enough better to justify a 35,000 dollar purchase? My previous experience is a definite no, but I've never done the load board thing.

Thoughts?

Ragman · Sep 12, 2016

brokcanadian said:
So my position on newer vehicles is well known, I can fix anything myself and find it unessessary.

This will be useful to newbies as well.

I'm doing some side work and they're trying to tell me that you can get more business off the load boards with newer equipment. I read that as the business owner wants me but wants a fleet that looks better on paper.

Is it really enough better to justify a 35,000 dollar purchase? My previous experience is a definite no, but I've never done the load board thing.

Thoughts?

I'm not convinced shippers really care if your truck is newer or not. As long as it looks respectable and runs well is what matters imo.

brokcanadian · Sep 12, 2016

Ragman said:
I'm not convinced shippers really care if your truck is newer or not. As long as it looks respectable and runs well is what matters imo.

That's what I thought. Apparently there are "tiers" of freight to access, newer equipment gives you access to more...trying to verify this info

Living the dream · Sep 13, 2016

Some customers an carriers want contractors equipment to be no older then 5yrs old. Less break downs, an down time. I trade my equipment every 5 to 7yrs. An buy new. You can pay it off in a yr or 2 plus the intrest is tax deductible as a business write off.

brokcanadian · Sep 13, 2016

Good advice...save the fact that 100% writeoffs only reduce my taxable income, meaning I save 25% in my situation and pay the other 75% out of pocket, it's a writeoff not a tax credit....

Which brings me to my specing out of a transit today, brand new would be about 1000 per month, and with the full writeoff 750 comes out of what should go in my pocket...so I'd better be getting 750 dollars more of loads per month BECAUSE I have a new van or I'd rather sit at home for that and be in a better place financially...just an example, not looking to spend 49,000 plus tax and financing

Less breakdowns? I break down once every 2 years, I have a friend with a newer sprinter that's spent 30,000 in repairs over 2 years and he bought new (well almost, he took over a lease to own and mileage / warranty goes quick)

Every 5-7 years you buy new and trade in. I cherry pick cheap low mileage vans that are very old and toss them after 2. Last 2 were under 2000, sprinter was big purchase at 3800 Canadian. Not a single thing has happened to it so far, and there's no DEF or DPF. If my payments + maintenance is going to be 1200 per month for example, with expensive failures, I'd rather sit and tell the owner to pound sand. But say I could access $2000 more of freight per month average, that changes things...

brokcanadian · Sep 13, 2016

I'm either answering my own question or I just need to take my own advice and try and find a 20,000 dollar 2 or 3 year old van...SOMEBODY must know, so far the only customer I've heard for year limits is ford and I've never taken a load for them in 10 years

TDave · Sep 13, 2016

GM has a 10 year thing too, personally I don't know how you van guys do it with a payment. You guys must be genies to make it work. I would consider it a risk.

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scottm4211 · Sep 13, 2016

TDave said:
GM has a 10 year thing too, personally I don't know how you van guys do it with a payment. You guys must be genies to make it work. I would consider it a risk.

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I've never been asked what year my vans or sprinters were at any auto plant. I imagine that's more for dock high vehicles that forklifts drive on.

brokcanadian · Sep 13, 2016

scottm4211 said:
I've never been asked what year my vans or sprinters were at any auto plant. I imagine that's more for dock high vehicles that forklifts drive on.

Supposedly it's at the load board level. If you're loaded, you've passed already

I think I have my magic answer. I get written proof or no go. Otherwise, I try to save up 20,000 in a separate account and if it gets there I pick a newer van.

As I deadhead home after 2 days in a good area, the rates I've seen going back make me want to smack a Canadian in the back of the head. At least I made 200 more on the way up than usual, and the normal carrier hasn't called me once in 3 days so nothing lost, only gained

scottm4211 · Sep 13, 2016

brokcanadian said:
Supposedly it's at the load board level. If you're loaded, you've passed already

I think I have my magic answer. I get written proof or no go. Otherwise, I try to save up 20,000 in a separate account and if it gets there I pick a newer van.

As I deadhead home after 2 days in a good area, the rates I've seen going back make me want to smack a Canadian in the back of the head. At least I made 200 more on the way up than usual, and the normal carrier hasn't called me once in 3 days so nothing lost, only gained

It is a policy, I've seen the signs at guard shacks but never been asked in 100's of deliveries.

TDave · Sep 13, 2016

scottm4211 said:
It is a policy, I've seen the signs at guard shacks but never been asked in 100's of deliveries.

I think you are right Scott I'm in a straight and more of a policy issue. Also I've only heard of a 10 yr. rule at auto plants and more of a site to site policy.

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Perioodic · Sep 13, 2016

You know I bought brand new. You're kinda over exaggerating on a payment if you're talking 60 months even with interest. A buddy of mine has a 160k miles 2015 sprinter only thing he had to change was the ac compressor so far. No other problems have risen.

TDave · Sep 13, 2016

Perioodic said:
You know I bought brand new. You're kinda over exaggerating on a payment if you're talking 60 months even with interest. A buddy of mine has a 160k miles 2015 sprinter only thing he had to change was the ac compressor so far. No other problems have risen.

I think its more of a personal preference than anything else. While Brock is comfortable with his mechanical skills others who are not might be comfortable with new or newer vehicles. No right or wrong answer just how you plan and run your business.

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Mailer · Sep 13, 2016

brokcanadian said:
So my position on newer vehicles is well known, I can fix anything myself and find it unessessary.

This will be useful to newbies as well.

I'm doing some side work and they're trying to tell me that you can get more business off the load boards with newer equipment. I read that as the business owner wants me but wants a fleet that looks better on paper.

Is it really enough better to justify a 35,000 dollar purchase? My previous experience is a definite no, but I've never done the load board thing.

Thoughts?

If the side gig "guarantees" 35k plus in the first year. Ya why not.

Personally, I always try to keep zero overhead (Lol..whatever's that meant). That way when there are no loads to run, I aint't stressin or sweating. Ya, definitely not going to have to worry about that new $1000+payment for sure.

Sounded like you are mechanically inclined and can fix a lot of things. Man, that's a great talent to have. You could save $1000s in DIY. IMHO if you have to buy another van, buy used, enough to meet their requirements and pay it off ASAP..... if you know for sure that the side gig is really going to bring in the money. Best of luck.

Moot · Sep 14, 2016

scottm4211 said:
I've never been asked what year my vans or sprinters were at any auto plant. I imagine that's more for dock high vehicles that forklifts drive on.

How old is your van?

brokcanadian · Sep 14, 2016

Moot said:
How old is your van?

11 years (2005) it was called an antique by a fellow Canadian yesterday

scottm4211 · Sep 14, 2016

Moot said:
How old is your van?

It's an '04. Bought it from a guy with memory loss.

Moot · Sep 14, 2016

brokcanadian said:
11 years (2005) it was called an antique by a fellow Canadian yesterday

You Canadians can be a tough bunch, eh.

Moot · Sep 14, 2016

scottm4211 said:
It's an '04. Bought it from a guy with memory loss.

That's 12 American years old. It's not so much the age but the mileage. As long as it has less than 350,000 kilometers on it, you should be good.

crich · Sep 14, 2016

the different tiers of freight as you call them are based on the carriers performance. in the case of ch robinson for example. tiers are ranked by the number of loads you haul combined with the number of units you operate. it is actually easier for a carrier with 1 truck to reach a tier 1 status just by completing 10 runs per month vs a carrier with 10 trucks who may have to complete 100 loads per month before they are in that tier. that does not necessarily mean fewer trucks are always better in some cases they may require a carrier to have a certain amount of trucks to haul for certain customers based on the freight volume of that customer. in some bids I see it will say something like need truck 10 yrs or newer but very few times per month do I actually see that. IMO it is much better to stick with older units that do not cost a ton of money to upkeep. cheaper on insurance and you know what you got.just as dependable as new as long as you do not neglect it.new trucks smell nice but if you do this for a living that warranty goes by fast and the cost to repair can take more than a month to recapture.