There’s no denying supply chain disruptions we’ve experienced for the past couple years, which were largely brought about because of COVID shutdowns. Consequently, manufacturers are finding it difficult to get new trucks off the production line and onto the market.
While trucking manufacturers continue to receive new truck orders, the lack of parts and components have resulted in order fulfillments being backlogged well into 2023, according to Eric Crawford, Vice President of ACT Research. Today, such shortages are a worldwide issue. So, what is the solution to this truck shortage? Instead of buying new, consider buying used.
Benefits of Buying Used
The purchase of a commercial vehicle is a major investment that requires careful consideration before you make a decision, regardless of whether you’re buying a single truck or several for your fleet.
New trucks may offer the latest bells and whistles, but they also come with a higher price tag and monthly payments. Used cars, on the other hand, come with fewer risks, including fewer upfront costs and lower depreciation. Consider the following benefits of buying a used truck.
- Wiser Investment. A used truck has much less depreciation than a new one, which means it holds its value better. Also, one of the obvious attractions of pre-owned is the price tag, which means better loan rates and a lower financial commitment.
- Financing Options. There are a variety of financing options available, depending on your credit rating, down payment, and monthly budget, but financing a used truck is usually more affordable.
- Lower Insurance, Registration, and Taxes. Oftentimes, the annual insurance premium is considerably less on used trucks because of the lower depreciation and lower price tag. Likewise, registration and sales tax are significantly lower too.
- Large Inventory. There are many more used trucks to choose from than newer ones, especially with the current shortages and 1-2-year backlog of new orders. Don’t think by opting for a used truck, there will be limited options. The majority of used trucks are only a few years old and may have been upgraded by the previous owner without having the hefty price tag.
- Helpful Feedback. If you’re willing to research used truck makes and models, there is a large amount of information available. Owners often leave feedback on how well the vehicle is performing, issues that have occurred, and so on. You’ll also have access to faulty parts or recalls.
- Higher Resale Value. Because new vehicles generally depreciate the most within the first year, even if you choose to sell your used truck, you can price it close to what you paid for it.
How to Avoid Potential Downsides of Buying Used
As with anything, there are pros and cons and the same is true with buying a used truck. Even with the multitude of benefits that come with buying used instead of new, there are potential downsides. However, by doing your research and working with a reputable dealer, many of these risks can be alleviated.
- Know what you need. Before making a purchase, determine the type of truck you need for the job. Conversely, decide on the features that are needs versus wants to avoid paying for unnecessary specs.
- Know the vehicle’s history. If at all possible, purchase a used vehicle that comes with records of routine maintenance, repairs, replacements, oil changes, etc. This documentation can give you a “health” snapshot of the truck so you can budget for future repairs as necessary.
- Find a reputable dealer. Not only will a reputable dealer sell quality vehicles, but they will also be sure it is up to par with maintenance checkpoints before putting it on the lot. Additionally, each used truck will come with its in-house maintenance paperwork.
- Research makes and models. Unfortunately, some new trucks aren’t made to last. A bit of research will familiarize you with the manufacturers of those to avoid. The lack of quality is fairly apparent in the new builds. Another red flag is seeing hundreds of the same make and model for prices too good to be true.
The bottom line is, knowing what you can afford and the type of truck that you need will be well worth the time and research you invest in making a careful decision. After all, new or used, buying a commercial truck is a major investment — and one you’ll be counting on for a long time coming.
Check Out TCI’s Used Truck Inventory
Serving the trucking industry since 1978, TCI Transportation has multiple locations spanning from coast to coast. And our ever-expanding network means you’ll have a wide variety of used trucks to choose from.
Our inventory of well-maintained used commercial vehicles range from trucks and tractors to yard spotters, and our inventory is made up of our own lease trucks maintained by our in-house service staff. We will work with you to create a financing plan that fits your budget. We also offer extended warranty options, maintenance plans, and roadside assistance programs. Check out our full inventory at TCItrucksales.com
