Keeping dependability, research, warranties, specifications and other key elements in mind during your pre-buying work will help you will make an excellent truck purchasing decision.
By Alan Shapiro
A truck investment is one of the most important purchases you can make today for your organization. In order to get the best vehicle that meets your needs, we have found these fundamental rules when making these hugely important purchases have worked exceedingly well and can provide an enormous help to your waste disposal business.
#1: Dependability
鈥淧rice鈥� is not at the top of the list鈥攏ot even close. If you have a truck that is constantly underperforming鈥攔esulting in forcing your company to reschedule or cancel business jobs鈥攜ou will be unhappy. If you happened to have paid a 鈥渓ow price鈥� for that undependable truck, thinking of that low price will not make you any happier.
On the other hand, if things are going well with the performance of your new truck and it is dependable, you will not dwell on the price you paid, even if it鈥檚 considered a 鈥渉igh鈥� price. When a truck is doing its job鈥攔emaining dependable鈥攜ou will never mutter to yourself: 鈥淲hy did I pay so much money for that truck?鈥�
Number 1 on our list is dependability. How do you know if the truck you are purchasing is dependable? 鈥淭here are two elements to determine whether a truck is dependable or not and they are both important because they result in customer uptime, or lack thereof,鈥� says Oscar Horton, President and CEO of Sun State International Trucks (Tampa, FL), and named 2020 Truck Dealer of the Year by the American Truck Dealers (ATD) Association. 鈥淭he first factor is the quality and reliability that is built into the product during the procurement, engineering and manufacturing stage by the OEM,鈥� Horton said. 鈥淚n many cases, there is common componentry used across various OEMs. To me, the second factor is the real differentiator: How quickly can your local dealer turn the truck around when a repair is needed? Who you buy from, their reputation for customer service, support, parts availability, hours of operation and technician training areas are as important, if not more important, than just the truck itself.鈥�
#2: Research
Another key fundamental in making your commercial truck purchase is research. Pat Zeck, Operations Manager of HazChem Environmental Corporation, says 鈥淩esearch, research and more research. This is a huge fundamental piece toward buying a new truck for a waste disposal company鈥攁nd I mean a lot of research. When you are spending, say, $150,000 on a new commercial truck, I wouldn鈥檛 spend just five minutes on research. Look up the truck鈥檚 recalls. Look up all and any review you can possibly find on that truck. And call everyone you know who has purchased that truck you are eyeing.鈥�
#3: Warranties
There is no one-size-fits-all with regards to warranties. However, you must ask the right questions regarding the warranties鈥攁nd you must get the right answers. So, what key questions should you ask regarding warranties? 鈥淎sk what the price is for the miles/hours-of-operation/length-of-term-you-plan-on-keeping-truck to help determine if the value point is there,鈥� Horton says. 鈥淒rivetrain components are typically the most costly, so if peace of mind is important to you, it may be worth buying an insurance policy via a warranty.
鈥淚n addition to asking what the base chassis warranty is, it is important that customers are aware that all OEMs offer a variety of warranties, whether it is on specific drivetrain components or the entire chassis. From there it gets to be a cost/value equation. Customers should also ask about deductibles or any limitations or exclusions that may be written in any of these warranties.鈥�
#4: Questions
By 鈥渜uestions,鈥� we mean questions to the salesperson/dealer before pulling the trigger on your commercial-truck purchase. First, Horton suggests you ask yourself a huge question regarding the salesperson/dealer you are working with: 鈥淲ill they be there for you when you need them?鈥�
On the day of sale, you are happy you have a new truck. The salesperson and dealer are happy they have made a sale. The pervasive mood is that of a honeymoon. However, within a few hours, the honeymoon is over: You are now in a business marriage鈥攜ou and your new truck. And some breakdowns are inevitable.
So, before buying, says Horton, 鈥淎sk for other local customer referrals who can share their experience with the product and the local support.鈥� The pre-buying period is no time for bashfulness. Be direct. 鈥淒epending upon what is important to the specific customer, ask probing questions of the salesperson about that particular area. For example, if driver comfort is important, you should ask the salesperson as to how their truck meets that need. Same for uptime, fuel economy, resale value or whatever else may be your hot button,鈥� explains Horton.
鈥淎 good general question to ask is about the total cost of ownership of the product. This encompasses the upfront purchase price, running costs to operate, uptime and resale value. A good salesperson should be able to articulate the value proposition of their product, dealership and overall brand.鈥�
#5: Specifications
Spec. Spec鈥檌ng, Spec鈥檇. Spell it anyway you want, call it anything you want. The important thing is to do it accurately. Says Cindy Campbell, Vice President at JX Enterprises (Hartland, WI), a company that operates in 27 locations in Wisconsin, Indiana, Michigan and Illinois, and is the largest Peterbilt dealer group in the Midwest, says, 鈥淲hen you are purchasing a truck, if it is spec鈥檇 appropriately for its intended purpose, you will maximize your uptime, which will assist with driver retention. This will most definitely have a positive impact on the bottom line for your company. If your truck is well spec鈥檇, it will ensure that you receive a higher value in the secondary market. In other words, you will get a better trade-in value.鈥�
Spec鈥檌ng correctly does takes some time and is a vital part of the commercial truck-buying process. 鈥淪pec鈥檌ng correctly means you are focusing on the overall value of a truck,鈥� Campbell says. 鈥淪o often, companies get fixated solely on acquisition cost, and they don鈥檛 consider the overall lifecycle value of the asset, which can have a significant impact on profit.鈥�
#6: Comfort
鈥淵ou must consider the comfort of your driver when buying a new truck,鈥� Campbell mentions. 鈥淭he more comfortable your drivers are, the less fatigued they will be each and every day. Once your driver gets into that truck, it鈥檚 imperative that they are comfortable. If your driver鈥檚 ears are ringing due to excessive road noise or if their body aches due to a cheap seat, then the driver is far more likely to experience fatigue鈥攁nd that can contribute to driver turnover. If you鈥檝e made sure that you have set up the cab correctly, like the right insulation package, driver鈥檚 seat, sound system, gauge package, multiple cup holders, etc., then you are helping to abate driver fatigue鈥攁nd your driver will be coming into work every day with a great attitude.鈥�
#7: Support
Strong post-purchase dealer support cannot be over stressed. Your truck will only be as dependable as the dealer you are banking on to support it. 鈥淒ealer support is essential,鈥� Campbell says. For example, Campbell鈥檚 company provides a 鈥淩apid Check鈥� guarantee, which means the service department will take a look at your truck and quickly let you know whether the problem is a 鈥渜uick fix鈥� or will take further diagnostics. 鈥淲e require all 27 of our dealers provide a 鈥楻apid Check鈥� guarantee,鈥� Campbell says. 鈥淐ustomers need the ability to plan for the appropriate repair time.鈥�
Truck owners want to know very quickly what the issue is with regards to what needs service on the vehicle. The dealer should give you the knowledge of just how long that truck of ours will be off the road. We always like to hear, 鈥淚t鈥檒l be ready in just a few hours,鈥� but that is not always possible. So, if the dealer can give us the knowledge of just how long our truck will be off the road, be it a short or long period of time, then consider that quality dealer support.
You can make adjustments to having a truck off the road for a while鈥攁s long as you are told relatively quickly about having to make that adjustment.
#8: Longevity
Some companies in the waste disposal business want to employ their new truck from birth to death. Others plan on using that truck for five years, then trade it in or sell it. No outsider can tell you which plan fits you best. However, owning a well-built truck that has earmarks of a long life is never bad.
If you planned on keeping your truck for its full life and it is on the road for more than 1 million miles, that is great. But if you choose to keep that truck for say, five years, and then resell, your future buyer will be more apt to pay a higher price if that truck is destined for a long life.
Campbell says, 鈥淚 do feel it is essential that the material and components of the truck will support longevity. Many companies want to trade in their truck after five years because of the warranties and other factors. There are other companies that don鈥檛 want to purchase another truck for 10 or more years because it fits their business model. The best decision you can make is to stay in
compliance with your own business model.鈥�
#9: Fuel/Efficiency
Get your answers regarding fuel efficiency early in your truck-buying process. It will greatly assist your final decision-making process. 鈥淔uel efficiency is a very big deal,鈥� says Campbell. 鈥淎gain, it鈥檚 key to your bottom line. Two of the biggest costs in trucking are fuel and tires. Aerodynamics will play a large role in the fuel efficiency of your truck. Other contributing factors include driver proficiency and specifications of the engine relative to the travel lanes.鈥�
#10: Financing
鈥淓very OE and many dealer groups will have a financing arm. What you are looking for is a good partnership. Who will give you the better deal? Who will give you the better rate? Who will give you the better options? It really comes down to who can best support your needs,鈥� points out Campbell.
#11: Price
Spend the time to write out the goals you want to achieve with your new truck purchase. Look at the big picture with regards to price, not just the front-end cost. 鈥淕et competitive quotes from other OEs,鈥� says Campbell. 鈥淭hen apply the price against the lifecycle value that you鈥檙e getting and then you can make an educated decision on what best fits your own business model.鈥�
Making that Decision
Dependability, Research, Warranties, Questions, Specifications, Comfort, Support, Longevity, Fuel/Efficiency, Finance, Price. Keep them all in mind during your pre-buying work鈥攁nd you will make an excellent decision. | WA
Alan Shapiro is President of HazChem Environmental Corporation, (Addison, IL). He has been in the waste disposal business for more than 30 years. For more information, visit Hazchem.com.