Are you considering buying a commercial vehicle? Whether it’s time to expand your fleet or get the irreparable ones off the line, a new commercial vehicle is a considerable investment.
On the surface, new commercial vehicles are highly appealing, given their sheen and gloss. However, now it may only be practical. This is why second-hand commercial vehicle financing is available to purchase pre-owned trucks and trailers.
Wondering if buying pre-owned is a good choice in the long run? Keep reading to understand the benefits and cautions involved.
Reasons to Invest in a Second-Hand Commercial Vehicle
Listed below are some of the vital reasons in favor of purchasing a second-hand commercial vehicle for your business –
1. Frugal Choice
Let’s begin with the most apparent incentive: the up-front cost of owning a second-hand truck is much less than that of a brand-new one. This is because a commercial vehicle experiences a sharp fall in value for the first 12 months.
So, you can find good deals on trucks that are just a little over a year old. Moreover, the depreciation rate is also slower after the first year. This means you won’t face a heavy loss if you consider reselling the vehicle.
Commercial truck loans help fund your purchase, especially if your business is fledgling.
2. Familiar Choice
Despite being a new vehicle in your fleet, second-hand commercial vehicles have a more dependable lifecycle than new ones. This is especially true if you can procure its telematics, such as idle time, engine hours, alerts, fuel economy, etc.
You can deduce the estimated functional years and performance through these maintenance records. This confidence and familiarity can help you plan routes more effectively and maximize your fleet’s productivity.
While new trucks bring their fair share of technical and operational learning curves, second-hand vehicles are different from what you can get right to work immediately.
3. Flexible Choice
One problem with new commercial vehicles is that you’re limited to the latest models. This is not the case with second-hand commercial vehicles. You have various options to choose from; models as old as a year or even a few years are usually well-maintained and readily available.
Then there’s the flexibility of repairing older trucks efficiently. If the vehicle is not too old, its parts may be directly available from the manufacturer or individual sellers for older models.
4. Environment-Friendly Choice
Another benefit of choosing a second-hand truck is the eco-friendliness. On the surface, this may sound false because older vehicles are not considered as fuel-efficient as their newer counterparts.
However, purchasing used commercial vehicles reduces the demand for newer ones. This saves significant energy that is otherwise used in manufacturing new trucks and trailers.
Some Caution Points to Consider
Now that you know the benefits of purchasing a pre-owned truck through second-hand commercial vehicle finance, let’s look into some caution points to remember –
1. Availability of Spare Parts
Remember this golden rule – the older the commercial vehicle, the more challenging it will be to procure spare parts if needed. It is best to purchase an over-a-year-old truck or stretch it to four to five years (not more).
Also, stay wary of limited edition or vintage vehicles because their spare parts will be costlier, and if you go for second-hand parts, the truck’s performance may suffer.
2. Seller Reputation
Another important thing to be careful of is the reputation of the seller you’re planning to purchase the truck from. A good seller will show goodwill towards your needs and budget.
They will also show you all options that match your requirements. Get to know the seller’s history, look for client testimonials, and choose a truck that matches your requirements 100%. Also, try not to have any middlemen intervene in the negotiation process.
3. Raising Important Questions
Though commercial truck loans will help fund your second-hand purchase, there are other costs you need to consider, such as maintenance costs. To ensure you don’t end up paying more than the needful towards maintenance, ask why the truck is being sold in the first place.
Question the seller about the vehicle in question. This is crucial because there are chances of hidden damages being present. It could also be possible that the damaged part is irreplaceable or very expensive. Knowing the vehicle’s history will spare you much hassle.
The Bottom Line
Whether your need for a commercial vehicle is urgent or you have a couple of months to plan your purchase, consider investing in a pre-owned vehicle.
Take your time with a purchase; second-hand commercial vehicles offer a range of benefits, especially for small and medium-sized businesses but keep the above-mentioned caution points in mind to make an informed choice.
Use commercial truck loans to fund your purchase and make your fleet your business’ strongest suit.