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The financial case for buying used trucks is compelling: according to A & D Logistics, a one-year-old Volvo FH tractor unit can be £10,000 to £20,000 cheaper than new iords: Ian Gratin Images: Craig Eccieston For the smallto medium-sized haulier, if financial conditions allow, purchasing a quality, nearly new truck outright can have its advantages.
CM visited Johnstone, Renfrewshire-based A & D Logistics to ask MD Alan Bolsworth what his reasons are for only buying used trucks for his busy container haulage fleet.
Although A & D Logistics was incorporated 10 years ago, Bolsworth and his brother Drew started their first joint haulage business a few years before that, after a spell in the motor transport section of the Royal Corps of Signals. They bought their first truck six months after leaving the army.
Starting on fridge work, Bolsworth says they've experienced solid growth every year since.
Humble beginnings A & D Logistics carried out some contract work for WH Malcolm in the beginning and retains a cordial business relationship with Scotland's premier haulier. "We started with one truck, one trailer and one customer," says Bolsworth. He puts the firm's success down to having grown with its customers. Following a gradual build up over the years, 98% of its work is now on shipping containers.
Surprisingly for an operator in such a volatile sector, he confirms that all the trucks bought in the past 10 years have been additions to the fleet with no replacements. Testimony, he believes, to the company's focus on customer service, keeping costs down but not skimping on vehicle maintenance, presentation and driver training.
A & D Logistics now operates a fleet of 56 Volvos, all bought outright from the local dealer as used vehicles. All are 44-tonne GCVV, three-axle tractor units. Since 2006, all used Volvo purchases have been of FH Globetrotter XL variant cabs. "Driver acceptability is very good. The guys can be out four nights a week. I like to look after them; that's why I choose a truck that I would prefer," says Bolsworth.
The company still has the first used Volvo to join the fleet, a 1999-plate FH. "Dealing with one manufacturer, whether that's Volvo for the tractor units or Dennison for the trailers, has a number of business advantages," says Bolsworth. "Parts and service knowledge and training are easier to control."
A & D Logistics opened its own workshop in 2004. He explains: "We took maintenance and repairs in-house as it meant no waiting. We also have a service van so we can carry out repairs on-site at the container yards or docks and at customers' premises."
More recent purchases have two-year R&M contracts that are carried out by Volvo Truck and Bus Centre at nearby Cardonald.
"I like the way the deal with Cardonald works," he says.
"Their specialist used truck guy calls to say they have vehicles available to the spec I prefer: a one-year-old, FH500, Globetrotter XL cab, I-Shift gearbox. I like to see them before we make a decision to buy. They bring trucks over to the yard for me to inspect.
"At one year's old, they've come off the Flexi Rent scheme and they're just like new. We sometimes buy them with a bit more than 120,000km, and have bought three or even six at a time depending on the deal and the vehicles' condition."
The 13-litre Volvo D13C engine is the preferred option at 500hp now, says Bolsworth, following good experience with the lower ratings of 460hp and 480hp. The 500's low-speed torque (2,500Nm from 1,050rpm) and reputation for fuel efficiency make it a popular choice among time-sensitive distribution operations, such as container-shipping hauliers.
According to Bolsworth, the 500hp is good on fuel. Recalibrating the fleet's speed limiters to 53mph has also helped fuel consumption. Although a significant proportion of the company's business is conducted in the industrial and urbanised central belt of Scotland, deliveries down south are growing and the company now has regular work out of Hull, Liverpool and Exeter.
Keeping maintenance in check For A & D Logistics, operating used trucks has not degraded the standard of fleet presentation in any way. All its trucks are smartly turned out, partly a result of the one-driver policy, although some vehicles are occasionally double-shifted at busy times of year. As part of the firm's 0-licence inspection maintenance checks, Bolsworth likes to download the ECU to check figures for harsh braking, engine idle times, as well as driver and vehicle performance information.
The company has three driver-trainers, two who have been trained by Volvo at Warwick on the JAUPTapproved fuel economy modules that count towards their Driver CPC hours. The third was trained at the Volvo dealership in Cardonald, Glasgow. According to Bolsworth, driver training is paying dividends in terms of component wear as well as fuel economy.
Another move that has helped keep replacement parts costs down was changing Volvo's vented discs to solids. He says: "The vented discs had a tendency to develop cracks, so we changed them all to solids. The latest Volvos come with solid discs now."
Bolsworth admits that he likes to keep an eye on market prices in CM and regularly looks at other makes' offerings, both new and used. "About four years ago, prices were getting a wee bit top heavy," he says.
However, as one of the most prolific buyers of used trucks in Scotland, the Volvo dealer keeps him firmly in the loop about potential deals.
"Apart from the odd electrical blip, we've not had any problems with the FH. The reliability keeps improving. We've got 38 with I-Shift now and clutches are lasting longer, up to around four years or about 400,000km.We still keep a close eye on clutch wear on the manual gearboxes via VCADS [Volvo's workshop diagnostic system]. Clutches last considerably longer with the I-Shift gearbox," he says.
Local produce A & D Logistics prefers to use genuine Volvo parts. These are sourced from the local dealer who delivers several times a day. Another advantage of buying one-year-old used trucks is that parts usage and associated costs are much lower than in later years of operation.
Any used vehicle being presented as a possible purchase is given a thorough inspection, in addition to the 20-point check carried out by Volvo. Bolsworth also downloads the ECU of each potential addition to the fleet himself He believes the fact the company has never had a differential or any major component fail is down to this level of attention to detail. He is so confident in the checks that he doesn't even test drive the latest trucks before purchasing.
Buying used is a fundamental part of A & D Logistics' business philosophy. It is also one that, thanks to the availability of good-quality, reliable and competitively priced late plate Volvo FHs, has enabled the Bolsworth brothers to maintain a competitive edge without cutting corners.
According to Bolsworth, the company also buys premium spec Volvo FHs because it respects and values its drivers, providing them with good-quality trucks to do the job of container haulage.
Buying used Volvos that have come off the manufacturer's Flexi Lease scheme has been hassle-free, says Bolsworth.
"The 10and 11-plates have never been back to the dealer. With the used FHs we're getting a good truck that's ready to go to work. It's a sophisticated truck and the drivers really benefit from the training to help them use the right techniques to get the best out of it. From a business point of view, buying used Volvos for the fleet has been a no-brainer." • A reduced risk Manufacturers' schemes have reduced risk for used truck buyers. Volvo's Selected Used Truck programme, for example, which has been running for more than 10 years, includes a 12-month Driveline Assurance, minimum six-month MoT and at least 6mm tread depth on the tyres. It's fair to say that manufacturers' premium used truck schemes nowadays contain enough checks and balances on quality and roadworthiness that they should represent a safe bet for the careful purchaser.
Volvo's Flexi Rent contract Volvo's popular Flexi Rent short-term contract hire scheme for new trucks, with an opt-out clause at 12 and 24 months, has helped many haulage businesses fulfil short-term contracts, while presenting a golden opportunity for operators of all sizes to capitalise on the availability of high spec, oneand two-yearold used trucks. This flexible form of finance lease has been one of the main innovations in asset-based financial products for the road transport sector in recent years. It has effectively created a viable and sustained market in nearly new trucks that have been dealer maintained on manufacturer's R&M schemes. Fleet operators who took Flexi Rent trucks from Volvo when the programme was launched in 2010 included highly respected names such as Currie European and, in 2011, Devereux Transport of Billingham.