Today, we’re looking at some interesting information that was first posted on our partner site. In a recent survey of 3685 small business owners that have made a vocational truck purchase in the last 12 months…
78% replace trucks only when reliable operation is a factor
Waiting until the wheels fall off is a very expensive approach to replacing your vocational vehicles. There is no bigger cost to your business than the service interruption to your customer. Even if you can avoid the pain of customer complaints following vehicle failure, it often involves very high rental expenses and the operational challenges of using a generic truck not designed for your business.
Fleets with an average age of 5 years or newer turn over less employees.
No one wants to drive an old, beaten down truck—and the stats prove it. Finding new employees that drive your vocational trucks is a significant expense. Operational disruptions of turnover can include workflow challenges, recruiting, training, certifications and more just to put another resource in the driver’s seat. And those items carry soft and hard costs that far outweigh what a new monthly payment might be for a new truck.
82% sacrifice on specs needed for upfront cost implications
Most business owners are passing on needed features just to save a little money up front. And we’re not talking additional chrome and reflectors here folks. These are major technology features that would help them meet customer needs more effectively or help drivers do their jobs better. An extra $3-10K might look painful up-front, but may only provide a nominal impact to monthly payment. This impact could be overwhelmed by the operational benefits and upside of having the features you really need.
If you are planning on keeping the equipment for as long as you possibly can, waiting for the wheels to fall off before thinking about replacement or sacrificing the specs you need for the up-front cost you want—you just might be adding to your long-term expenses instead of reducing them. A finance partner like American Equipment Finance can help. For years, we’ve been financing vocational trucks in a way that helps business owners make this investment more affordably. If you need some new thinking around this topic, let’s talk.