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Cut costs by buying used CVs
Page 69
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Buying second-hand trucks is an effective way of keeping your company overheads low says a financial adviser.
An independent financial adviser says sole traders and medium sized limited haulage companies should take steps to reduce their fixed costs to remain competitive by buying their vehicles from the used market.
Nicholas McKenna runs his own financial and accounting company and has several haulage contractors on his hooks. "You don't need to be involved in road haulage every day to know that you need to reduce overheads and downsize fixed costs to remain competitive," he says.
"While reducing numbers of employees is one way, thinking laterally and using the used truck market is another.The used market is strong and offers decent financial packages that medium sized operators should take advantage of.
"You can reduce running costs significantly if you buy used vehicles rather than procure new, especially if you are a small to medium [up to 10 vehicles] sized company. These can be more at risk of going under than one-man operations or major fleets because secure long-term high-rewarding contracts just aren't there," he adds.
With unstable oil prices and the cost of fuel still rising he argues that by looking sideways operators can save money when dealing with fixed costs:" Operators who buy new have a massive outlay on a vehicle with high monthly repayments. And buy-back deals are fast becoming non-existent, so good residual values are not guaranteed.
"Purchasing from the used market means paying less overall," he concludes."You can buy decent used stock,run it for three to four years before disposal, and then recycle again." •