7-Step 5 - Locate and obtain a truck

1 Step 5 - Locate and obtain a truckIf you choose to operate your company using employee drivers, you will need to purchase or lease your own vehicle(s). Your start up costs and budget will determine how many vehicles is reasonable, and what type. Many businesses will start with a small fleet and increase in size as they become profitable. Explore your options depending on the type of trucking company you will run. Below are some options to consider based on need. See the Resource Guide for recommended truck vendor. New vs. Used A new truck is typically low maintenance and is covered under the initial warranty, has less downtime, the newest technology, lower operating costs, and is more environmentally friendly.

2 However, the high cost to obtain a new truck may not justify choosing one over a used truck . A used truck , on the other hand, comes at a much lower price point. Obtaining a used truck will allow you to generate profit faster than if you were to buy or lease a new truck . If you go the used route, do your research and check with the people who will be servicing and repairing your truck to make sure you re getting a truck that s worth the value. You don t want a truck that is going to blow an engine or transmission or experience high repair costs during the first year. Major repairs during the first year of operation is one of the most common reasons we see companies go out of business. For this reason, it is also important to purchase an extended warranty.

3 Alix s Recommendation: Used trucks formerly owned by a major fleet owner, ex. Walmart, Penske. Buy vs. Lease Large motor carriers tend to have the expertise to manage all aspects of vehicle ownership. If interest rates are low, trade-in allowances are good, you have financing sources, and enough money to cover the down payment, buying is often a good option. There are many advantages to leasing, including lower down payments, you can typically expense the entire monthly payment, and the lease usually ends before major repairs are needed. Because leasing requires less money, you typically can grow faster and have more operating capital. Leases also normally come with a maintenance package.

4 Alix s Recommendation: Buy or finance, more cost effective in the long run. Picking the truck There are a variety options to choose from when it comes to picking a truck . It s best to choose the truck that s right for you based on the type of work your company will be doing. For example, if you are going to be sending your truck over the road, it is best to choose a sleeper truck that has a bed for the driver to get rest. If you have a driver lined up, you may also want to get their feedback on certain preferred options, such as stick vs. automatic. Let s go over a few different options available when picking a truck : Good Energy ConsultantsAll rights reserved. This document may not be reproduced or used in any manner whatsoever other than for internal use without written permission of Good Energy !

5 Of !23 truck Manufacturers There are several manufacturers to choose from when it comes to purchasing a truck aka tractor. A few examples are Freightliner, Volvo, Peterbilt, Kenworth, Mack, Mercedes Benz and International. All makes have unique characteristics and different levels of comfort and performance . When visiting a truck dealer make sure to compare all options. Alix s Recommendation: Freightliner Cascadia, Volvo VNL series or Kenworth T680. Stay away from International ProStars with maxxforce engines and Mercedes Benz trucks with Mercedes Benz engines. Cab - Sleeper vs. Day Cab As mentioned, a sleeper cab is recommended for going over the road , or when a driver is spending the night on the road.

6 It saves money because you won t have to rent hotel rooms nightly. Some sleeper cabs even have 2 beds, which works well for team driving. Alix s Recommendation: Sleeper cabs, as day cabs are only recommended for local contracts or local runs. Transmission - Manual vs. Automatic With a manual transmission, drivers are more likely to be more attentive because they have to pay attention to shifting. Experienced drivers prefer this option as it is what they are used to. Manual transmissions are good for pulling heavy loads up and down hills. Additionally, sources have said it is more cost effective to fix a manual clutch than the computer of an automatic transmission. Automatic transmissions have better vehicle control because drivers are able to have both hands available for steering at all times.

7 There is also less wear and tear on the clutch. Newer drivers with less than 3 years experience tend to prefer automatic transmissions due to the big companies they start off working with utilizing them more. Alix s Recommendation: Once you Locate a driver that you are confident will be with your company long term, find out what they prefer. Engines When choosing an engine, you want to look for the most cost-effective engine that most mechanics have experience repairing, especially your home-based mechanic. You ll want to consider an engine where parts are accessible from a wide variety of vendors around the country in the event of breakdowns while on the road. Alix s Recommendation: Detroit or Cummins engine is my first pick.

8 But find a conveniently located certified mechanic and purchase the engine they specialize in repairing. Good Energy ConsultantsAll rights reserved. This document may not be reproduced or used in any manner whatsoever other than for internal use without written permission of Good Energy ! of !33 Tires When buying a new truck , dealerships sometimes like to save money by having recapped* tires on trucks. Though recapped tires to the inexperienced buyer looks appealing, it wont last as a long as a brand new virgin tire. Make sure when buying a truck to at least have brand new virgin tires to get the most life and moneys worth. *A recap or retread is a used tire that has been re-manufactured to extend its life.

9 The old worn tread is removed and new tread is attached through a specialized process involving hot and cold curing. Retreads are widely used in the trucking industry because of the high cost of replacing truck tires. Governor A governor is a device used to measure and regulate the speed of the truck s engine. If a truck was previously owned by a company with a large fleet, it will more than likely have a governor installed. Trucks with a governor installed tend to save on fuel consumption, but are slower on the road. It is at your discretion to have the governor removed or left on. Warranty We STRONGLY suggest you purchase an extended warranty of at least 6 months/50,000 miles bumper-to-bumper, or preferably 1 year/100,000 miles bumper-to-bumper if the truck is past its warranty period.

10 Tips & Recommendations Always obtain previous maintenance records before purchasing a truck . Likewise, always keep your own maintenance records up-to-date after purchase. We strongly recommend a pre-purchase inspection to be performed, specifically by a certified dealer. Make sure any recommended or needed repairs are done before purchasing the truck . Get an account with a truck rental company, so in the event of a breakdown, you can get a loaner truck . It is wise to obtain roadside assistance when you purchase your truck a company your driver can call 24 hours a day to assist in the event of a breakdown. See the Resource Guide for our preferred vendor. Find a secure and conveniently located truck parking facility.