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Secondhand saves money

19th August 2004, Page 67
19th August 2004
Page 67
Page 67, 19th August 2004 — Secondhand saves money
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Which of the following most accurately describes the problem?

Owner-drivers can slash start-up costs on used market says operator.

you're planning to start up your own haulage business there are plenty of cheaper trucks on the market to help reduce your initial running costs.

Owner-driver Sam Hughes warns that new owner-drivers are putting themselves at risk by buying expensive secondhand trucks because they lack trust in cheaper vehicles. "You can save 40% starting up costs straight away by buying less appealing tractors," he suggests.

Hughes has been in the business for 16 years running several trucks out of Manchester on container contracts and subcontracting two for supermarket giant Morrisons in Middlewich. He owns two ERF EC11s, two Renault Premium 420s, a Scania R124. and an Iveco Eurotech— all bought secondhand.

"1 have seen several [new operators] fall by the wayside. because they haven't done their sums," he adds."Some even before they get their first cheque. One thing they always overlook is VAT when buying a new or expensive secondhand vehicle."

Buying a cheaper truck like the Renault Premium 385 or 1veco Eurostar with a low deposit is the best way to get through the 60-90-day start-up period before you get that first cheque, he says:"It's all sweetness and light when they start up with a gleaming tractor that's cost the earth, then two months down the line it's all doom and gloom as the repayments over three years have caught up with them already" •

Tags

People: Sam Hughes
Locations: Manchester

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