What would an experienced o/o buy?

HAHAHAHAHAHAHAHA!!!!

Quote of the year!!!!

 

Interesting conversation with a mentor. He has about 80 company trucks that have been mostly Cascadias and 780's. He purchased 19 Prostars almost 2 years ago. He says the Cascadias are junk and the only way he sees Freightliner maintaining sales is that they are offering a great lease programs. But they won't offer the deals on a 4-year cycle only 3-year.
He has had great luck with the Prostar and will be replacing all his Cascadias with them as they come due. And replacing 780's with 780's.
Prostar has been training his service team, for free, as they need it. Plus, if financed through International, any downtime on the repair will be credited towards his account (reducing the payment by days out-of-service).
He is very involved in Illinois Trucking Association and say based on membership survey's of associations across country, International sales have big increase, Volvo slight increase, Peterbilt/KW flat (transition to 587 has supply tight), Freightliner down.
Sounds like a "buy" recommendation on International stock and a "sell" on Freightliner.

 

Innovation costs money....and truckers are still,by and large, very cautious of new technology.

Missing from the Aero vs. Large car debate has been resale. A 379/389 or W9 will spank a Volvo or Freightliner in that department by thousands of dollars... that has to be figured into the cost of ownership.

I paid $18k for my 95 379 in 03.....it should still be worth $12k....you'd never see that with a Volvo. And this Pete has been the most trouble free truck I've driven in 39 years....

Regarding fuel economy I can show an ECM printout that shows over 7.2 MPG lifetime with my 435 Cat.... I don't get that anymore with ULSD pulling a van grossing almost 90k but I did. My son's. C15 600 got 6.7 with a flat in the last 2 months he owned it.

If I had to drive a Volvo or Cascadia I'd quit.

 

I don't think that most people will get fuel mileage as good as you did with your 379, Krooser. I never did with mine. It was a 91. I never got more than 5 mpg. In my case, I hauled cars so I had a head rack that I am sure caught a lot of wind. Other than a couple of people whom I know who currently own a 379, most have had similar experiences as I did with mine. It is usually a trade off. Some people would rather have the Pete or KW and deal with the lower fuel economy than get an aero truck.

As far as the resale issue is concerned. A 379 Pete or W900 KW will usually have a higher resale value than an aero truck, but what some don't want to admit is that they usually cost quite a bit more to purchase. From a financial standpoint, I think you are still coming out better with the aero truck. Most owners will keep a truck for several years. Only saving half a mile to a mile per gallon will really make a difference over a few years. I have run the numbers and found that I will make more with the aero than the hoods even if you consider the resale value.

 

There is a lot of innovation there, but here is what I find particularly perplexing...Why hasn't a truck manufacturer made an alliance with a trailer manufacturer? To truly build a fuel efficient truck-trailer combination an integration of the truck and trailer would be required. Maybe a Pete/Great Dane truck trailer combination which were designed & integrated to each other for the purpose of maximize fuel mpg. I think the manufacturers need to see the opportunity fuel savings (or conversely $4/gallon diesel) give them to "think out of the box" and produce a combination that changes and redefines the game (and target) for the industry.

 

Probably because everyone has their allegiances and they don't want to maybe lose some business because they're doing a joint venture with a another company.

 

The total cost of ownership numbers I used take into account resale/depreciation. The only thing that they didn't account for was financing and opportunity costs as these will be different for each situation.
Great example of opportunity cost in my business. In the years and miles that I am looking at I can get W900's in the $50-60k range and Centuries in the $30-35k range. Assuming I get the best deal on a 900 vs. worst on a Century, I can afford to buy 3 900's or 4 Centuries.
So without even accounting for operating costs differences, these 900's would cost me $15,000 per year in lost net income.
From an Independent O/O prospective. This difference is between having a second trailer (van/flat, reefer/van, etc) allowing you to maximize freight opportunities.

 

You make some valid points, BigBadBill. Opportunity costs are rarely considered when most prospective owners run their numbers. Another thing most probably don't include in their projections are the interest paid on a more expensive truck. If one truck costs $15,000 more to purchase the the buyer will be paid interest on an additional $15,000. That does not include any difference in fuel economy, higher insurance costs, etc., Comprehensive insurance is a percentage of the "stated value" or your equipment. Rates typically run from .025-0.45% of the stated value. Comprehensive insurance is sometimes called collision insurance and covers your equipment in case of an accident or theft.

 

And another increased insurance cost of some trucks, mainly Peterbilt, is that you have "Total Loss" and "Repair". My old Century had a fork lift driver drop a pallet of Arizona Ice Tea on it. The shop found a used hood for $350. Guy at the shop getting his 379 repaired joked that he can't get a grill for that.

Insurance companies calculate these increased cost into coverage.

 

I had to buy a bumper for a Peterbilt once. It had a Texas bumper. Those look good, but are very thin and easy to damage, mostly for looks. It cost me about $333 and that was over 10 years ago. I had a damaged headlight assembly once and they quoted me over $700 to replace it. I didn't need the entire assembly and found a dealer in Birmingham, AL that sold me the needed parts for I believe $232. You can't always find something in a salvage yard. Those are not things you turn in on your insurance. Besides, most have at least a $1,000 deductible.