The delivery business niche is on an upward trend nowadays. Due to a change in buyers’ behavior (more people are shopping online), the demand is still going up even after the restrictions of the pandemic start to ease.
Plus, the current predictions show there will be an increase in the need for long-haul trucking companies to take cargo from one side of the country to the other. And, as the supply chain crisis deepens, a truck may help business owners keep going.
Regardless of your needs and business aspirations, if you are in the long-haul delivery niche, you will need to buy a truck at some point. So will you buy a new one or a used one?
As it turns out, buying a used truck can be the right answer for many businesses on a budget (and not only). Still, a used truck is not always the right decision, which is why it’s important to analyze the pros and cons.
The Pros of Buying a Used Truck for Business
#1: Good for the Budget
Obviously, the initial investment (aka the price of the vehicle) is one of the main factors that drive the discussion. And, if you are on a budget or don’t want to get into a loan at the moment, a used truck can be a great option.
It is significantly cheaper than a new truck since a new vehicle loses 50% in value during the first five years of life. Plus, for half the value of a new truck (which is around $150,000), you can find a solid used truck that’s in good condition and can help you start the business.
Also, if you get a loan, a lower initial cost will help drive the interest down and keep the costs within manageable realms.
#2: Good Value & Quality
The main fear, when buying a used vehicle, is that it will come apart while driving it or that you will have to spend double its value in repairs. But trucks are designed to last a lot of wear and tear for a long period of time (up to 30 years).
Plus, a truck like the Peterbilt 579 is a staple of quality and value when it comes to durability in time. This type of truck is powerful, comfortable, and is fuel-efficient. Anyone who has ever driven or owned a Peterbilt 579 can vouch for its reliability and value for the price.
#3: Less Financial Risk
When your initial investment is lower, it’s easier to change tracks down the road and re-consider your purchase. If the truck you bought is not up to your standards, you can put it up for sale and reconsider your options. That’s because a used truck doesn’t depreciate as quickly as a new one.
The Potential Pitfalls of a Used Truck
Since nothing in life is 100% pros, here are a few cons you need to be aware of before making a decision with regards to buying a used truck:
• Higher risk of mechanical problems and high maintenance costs
• Heightened operational costs
• A polluting engine that requires extra care
• Internal wear and tear caused by bad driving habits of the previous owner/driver
• Unknown or altered history that can hide past damage
Buying a used truck for business purposes is a bit of a gamble, but you can always use an insurance policy to secure your business and vehicles and try to reduce the risk. Also, there are risks associated with buying a new vehicle as well.
At the end of the day, it’s important to know the market, understand the product, and ask for help whenever you feel you’re not prepared to make the decision.