Starting up a business can be expensive, and you must save money any chance you get. A likely place you might consider wanting to save up on cost is in the transportation aspect of your business.
More businesses are opting for used commercial vehicles instead of getting new ones.
But before you follow the bandwagon, you should understand what you’re getting into by purchasing a second hand truck or commercial vehicle.
So, in this article, we cover the following areas
- What are the benefits?
- What are the possible disadvantages?
- Where are the best places to buy a used truck?
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Pros and cons of buying a used truck for your business
Getting a used commercial vehicle i.e. a truck that’s affordable and reliable seems to be a win-win. But like a lot of things, there are benefits and drawbacks attached to it.
Buying a fairly truck comes with lots of pros:
It’s cheaper to buy a used truck than it is to buy one brand new. Hence, it can help you save up on cost if you’re new to the moving business, construction business, haulage business, or any other business that you’ll need a truck.
Although it might not be ideal for your entire fleet of vehicles to be made up of used trucks, it might still be a good start if you only plan on purchasing 2-3 trucks at once.
It’s important to know that just because a vehicle falls under the category of “fairly used” doesn’t necessarily mean it was heavily used.
There are many used trucks in the market that were not overly used before the owner decided to sell them. Oftentimes, the owner’s reasons aren’t due to any fault in the vehicle.
You’ll soon find out that these trucks are just as good as purchasing a new one. And if you’re lucky enough to find such a good deal with low mileage, you should consider it.
It’s common knowledge that as soon as you drive a vehicle out of the dealership, its value depreciates considerably.
But if you buy a used vehicle, you can avoid such a significant loss as your truck won’t lose as much value. And with proper maintenance, your truck will only lose value consequently instead of all at once.
Save up on insurance
Buying a used truck might also help you save up on insurance.
If you’re trying to save as much cash as you possibly can, then it will be a good idea to get in touch with your insurance company and find out their insurance policy for used vehicles.
Oftentimes, they’ll have a more favorable policy for a used one than they would a new one.
Most business owners opt out of buying the truck they want to get the ones that are most affordable, especially when purchasing new vehicles.
But when you buy a used model, you have a wider range of options to choose from and most of them might even fall within your budget.
Anything and everything from color, more space, better features, etc can be found in used vehicles at an affordable price.
If you’re still testing the sails of your business and you’re unsure of whether or not it’s something you want to do long-term, buying a used truck allows you to start small before you’re fully invested.
Starting with just one or two used trucks makes for a great beginning before you decide to fully commit to the business.
Cons of buying a second hand truck
Regardless of the benefits, buying a used / second hand truck might not be so rosy for many people. And with so many benefits, there’s also a downside to it.
Lowered life span
A quality used truck can be reliable, but it can’t be compared to a new truck in terms of their life spans.
You’ll soon notice the lowered life span of your truck, especially if you’re in a business that deals with handling heavy types of equipment like haulage or moving business.
Eventually, you might have to get a new truck due to the amount of money that will go into repairs and maintenance.
The added cost of repairs
Buying a Used truck might make you end up in the classic case of penny-wise pound foolish.
Because they’re not new, there’s the possibility that they will have some recurring maintenance issues, making you spend just as much money on repairs as it would have taken you to get a new truck.
Regardless of the condition of a used automobile, you can’t compare it to a brand new model.
Buying a new truck is setting yourself up for the possibility of a truck with lowered performance. This lowered performance could result in poor engine health, bad steering, lower fuel efficiency, etc.
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Poor truck health
You can never be too sure of how great the condition of your truck is.
Meaning that your truck might work well for the first few months and after a while, it might start breaking down or having faults. Because it was used by another person, there’s a possibility you’re inheriting another person’s problems.
Lack of warranties
Getting a truck new is a sure bet because you’re going to get a great warranty from either the dealership you got it from or the manufacturing company.
But by buying a used truck, there is a possibility that the previous owner has already used up its warranty or guarantee and you’ll have to pay for repairs and damages.
Some of The Best Places To Buy a Used Truck
The internet offers limitless options to how you can buy used trucks.
But you must narrow it down to the most reliable places. That way, you’re certain you won’t be getting scammed and you’ll be purchasing a durable and reliable item.
The following are some of the best places to buy a used truck for your business:
Directly from owner
This usually happens when you’re familiar with who the previous owner is. Buying a used truck directly from the owner might give you a certain kind of assurance on the vehicle you’re buying.
If at any point in time the vehicle doesn’t seem to fit the description, you can simply complain or possibly return it. Plus, you might also get to take it out for a test drive before making the purchase.
If you don’t need a used truck for any long-term purposes, then a rental company like Budget might be the way together.
For a small payment, you can sign a lease and have a used truck for all your transportation needs. A great example is if you’re moving and you need a truck for that particular trip.
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Online classified ads
Websites like Craigslist can offer you a listing of several models of used trucks for sale. These online platforms are so large that there are thousands of listed vehicles on these sites and this makes finding a vehicle within your budget very easy.
Newspapers and magazines
Your local newspaper or any trucker magazine can post a listing for a used truck for sale.
Although with the advent of the internet people no longer bother to check their local newspapers, newspapers are still a great place if you’re looking for budget-friendly options. What’s more, you can also post a paid ad if you eventually decide to sell your truck.
Social media platforms like Facebook offer auctions online. Some of these auctions can either be closed/private or made available to the public.
The item being auctioned will then be sold to whoever makes the highest bid. Many people have gotten quality used trucks and other commercial vehicles using this platform.
Average prices of used truck
Currently, the demand for used trucks seems to be growing. Maybe people are starting to see the benefits of buying their vehicles fairly used or for the general reason of saving money.
Nonetheless, even with the increase in demand, the average price as well as the availability of trucks is still able to match up and remains available and affordable to the masses.
The average price of a used Toyota tundra is currently at about $40000. It experienced a price increase of 26%.
A Used GMC Sierra 1500 had a price increase of 28% and it’s now currently sold at about $42000.
A used Chevrolet Silverado is currently sold at about $37000. It had a price increase of 27%.
The popular ford F-150 had a price increase of approximately 25% and it’s now sold at $38672
Nissan Titan XD
A used Nissan Titan Xd is sold for $38672 and increased in price by 20.2%.
Of course, these prices are dependent on your location or wherever it is you’re purchasing your vehicle from.
With all that has been said, there isn’t anything wrong with purchasing a used truck. It’s a cheaper alternative to buying a brand new truck. Plus you can even get a great deal. But beware as it’s still fairly used meaning it might not be as durable as it seems.
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