A lot of questions come into mind for a first time transportation truck buyer of whether they should buy a used truck or a new truck. Are you someone who has considered investing in a truck to become a owner operator or someone who is looking to run a transportation company? This is the perfect guide for you to help you understand why a used truck is a promising financial and investment.
One of the main differences between the purchasing an used truck compared to a new truck is the cost. A quality used truck will cost you approximately $45 000 – $55 000 CAD for a 4-5 year old truck. Buying a new truck will cost between $120 000 – $150 000 CAD. The benefits of buying the used trucks compared to the new trucks is obviously the price. The savings that an individual can have if he/she purchases the used truck can be allocated towards upgrades for the used truck.
For companies or individuals who are establishing their business, buying a used truck is an affordable option to start making an income as an owner operator, or to grow your company with more trucks.
“We don’t want a Used Truck”
The popular misconception is that new is always better than used. Yes, a new truck will have the smell of a new truck and will have new features, however as an investor, let’s consider this: “You lose 30% of a truck’s value as you drive it off the lot”!. If an individual or a company was to pay $120 000 for new truck, they would lose 30% on their initial investment to an approximate value of $84 000.
Just like cars, transportation trucks start to lose value with time and mileage. The biggest depreciation happens right when the truck is taken off the lot. The benefit of purchasing a used truck is an individual’s investment is not exposed to such a high percentage of depreciation.
Buying a quality pre-owned truck or a new truck is a big financial commitment and investment. For cash flow purposes, most individuals/companies will consider financing the purchase rather than paying the full cost upfront. Since a new truck has more than double the cost of a pre-owned truck, getting financing is much easier for individuals/companies to get a pre-owned truck. Less liability is always better for a peace of mind, and helps business owners and individuals invest in other areas to help grow their business.
Automakers are continuously improving their vehicles and adapting new safety systems. When choosing to buy a pre-owned truck, be sure to choose a trusted dealer who practices safety testing on their inventory. Be sure you review the safety emissions test. In terms of the build of the truck, buying a truck that is 4-5 years of age will have safety systems built in to make sure the vehicle is safe.
Made to Order
When buying a new truck, dealers will have add-on options to build your perfect truck to meet your business needs. Did you know that you can also modify used trucks? We at Universal Truck Sales have the ability to modify your truck as you need. View our modification guide to get more information.
At Universal Truck Sales, our primary goal is to help our customer find the right pre-owned transportation vehicle for their goal. Call us at 1 (888) 313 0122 or visit us at 5725 Atlantic Drive Mississauga Ontario.Share This Post: