Questionwe are looking at buying a truck, but we don't know what to get. Not sure if an expediter or tractor is better. we currently rent and lease and my business partner says we should buy but I've heard too many story's about companies starting out and going belly up just after they bought there truck. is it too much overhead?
AnswerHi Joe.
I can't really help you with a truck purchase because I don't know what you haul and where. My best advise is don't overbuy what you need. Don't but a tractor-trailer when a straight truck will do. Don't buy a Class 8 truck when something smaller will work.
I've had to rent/lease trucks and I'd much rather own. That's only because, financially, it's better for my company. Your company may be different. Yes, there are pro and cons to each. Yes, companies can go belly up from truck dept. The overhead can be managed, otherwise nobody would own trucks, you just have to be smart. Most of the guys I see fail don't manage their money. They will buy every chrome piece they can find and put custom paint, lights, interior on their trucks. Or they simply take too much money out of the company (like my new Corvette?). When you buy a truck, every month you should put reserve money into an account for repairs and tires. Your truck will need a turbo, it will need an engine rebuild and it will need tires. Budget for it. What your partner sees is the people who don't budget for it and that's when things get bad.
Now, when you go out and look for that truck, I have some simple advise. I would start out buying a used truck. Start shopping on www.truckpaper.com. Next, try and get an engine warranty. This, obviously, can save some serious headaches. If the seller says that it has a recent engine rebuild, demand papers proving it. I also take a mechanic with me to look at trucks. That $100 (or whatever you'll pay him) can save you thousands later. A good mechanic can pick up on problems quick, especially on a test drive. If the seller doesn't let you inspect the truck or take it on a test drive, then you don't need that truck...move on! Another thing I try and look for is a fleet maintained truck. Fleets always do preventative maintenance on their trucks and are generally in better mechanical condition. Also, sometimes you can get the fleet records on the truck. Finally, shop around. I bought a truck in Indiana recently and flew up to bring it back to Florida. The dealer was motivated and I hired a mechanic nearby (but not too close) to take a look at it for me. Even with the airfare (the dealer picked up the hotel) and fuel, I saved about $4500 from an almost identical truck that was only an hour away. I always shop and negotiate down to get the best deal possible. I never fall in love with a truck and have walked away from many good deals only to have the salesman call me the next day or two with an even better deal!
Bottom line, shop around and buy smart. Getting your own truck will most likely save you money in the long run. Be diligent in maintenance and simple things like oil changes. Find a good mechanic in your area that reasonable priced (dealers can get really expensive, but they handle electrical problems for me). Don't buy a 2008 Peterbilt with a 600 horsepower engine when a used International day cab is all you need!
Good luck!
Bob Stephens
