Temptation is defined as the desire to perform an action that one may enjoy immediately, or in the short term, but will probably later regret for various reasons. The temptation can be strong to keep rebuilding your truck. It definitely has advantages in the short term, but if you are sticking with a career in the trucking industry for the long haul, it may not be worth the cost to keep rebuilding. Here are some tips you can use to analyze whether or not it's time to invest in a new truck.
1. Maintenance - How much are you spending in maintenance for your current truck? If you are spending more than .13-.14 cents per mile, then you are spending too much on a truck with too many problems. In the example below, the driver would have saved $100 a month if he bought a new truck and increased the cost of his truck payment, but lowered the cost of maintenance.
|Payment and Maintenance Cost Analysis
||$.15/mile ($1650 total)
||$.05/mile ($550 total)
|*Based on driving 11,000 miles/month
2. Longevity - How long do you plan to stay in the industry? If you don’t plan to stay in the industry much longer but are still turning up a decent profit on a truck with high maintenance, then it’s probably not worth it for you to buy a new truck. If you have 5+ more years down the road and you own a truck with high maintenance cost, you might want to think again and make the investment.
3. Regulations - CARB truck and bus regulation is going to cost at least $16,000-$18,000 to install the emission compliance filter if you drive in California and have an engine made before 2010. Buying a truck with a compliant engine could cost you less overall and you get all of the perks that come along with driving a new ride. (Click here for more information on the CARB regulation.) Keep an eye out for regulations like CARB that are extremely costly and force you to upgrade sooner than you planned for.
Still tempted to keep rebuilding? ATBS Business Consultants (www.atbsshow.com) can give expert advice and help you create your own payment and maintenance cost analysis to determine when it is beneficial for you to upgrade your truck.