Curious what everyone's thoughts are on trading trucks? How often do you trade? So many yrs? Som many miles? So much spent on repairs? What have you found to be the sweet spot as a whole? Large fleets are trading at 3-5 yrs and 250-450,000 miles. Or just before warranty expires. Your thoughts good or bad. Thanks
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Too many variable factors to answer this question.
fleets trade them when the warranty expires and they will be paying for repairs, which also coincides with the tax depreciation running out and they will have to start paying income tax on the profit the truck makes.
if your a owner operator, it’s a totally different equation. Depending on on your much capital you have to start off with.
as an one man o/o you have to go one way or the other .
All new and under warranty ,
Or all old, pre emission and repair and maintain.
i know two small fleets in Atlanta ,
7-20 trucks in each company.
One company has all new stuff , and trades it before the warranty expires.
the other company has all older pre emission trucks and takes very good care of them .
it works for both company’s.
What you want to avoid is owning a used emission truck that’s out of warranty.
this method will work until the brilliant people that are in DC outlaw all old pre emission trucks like their party that I can’t name without getting the thread locked , did in California
This thread is interesting. In my case I won't trade out of my truck because it would cost me close to 300K or more to replace my tractor and It's not something I'm willing to do at this point. I'm currently rebuilding my engine, it's in the shop at this moment getting a complete in-frame; when she's done I'll have 5 to 7 years of reliable running before I have to start thinking about retiring my chariot. It actually pains me to think about the day I HAVE to retire this truck, she's a really good tractor and I'm going to, one day, miss having all the amenities.
Unless I break down every month, I'll keep replacing things until this engine times out. Maybe one day I'll come to my senses and get out of trucking completely. Probably as much chance of that happening as meeting the man of my dreams in the parking lot of a truck stop....LOL
There is a break even point that is surpassed when a truck is costing more than it is worth to keep it.
Many forget it is a tool, it isn’t a wife or girlfriend or a pet.
too many people think it is alright to dump $40k into a truck that is worth $20k.
People seem to think the large fleets rid their fleet of trucks because of warranty but it is depreciation and what I mentioned before the depreciation ends.
I have 925k on my well kept cascadia now, some people think it's only a couple years old but it is 8 years old.
200k on a complete inframe and most other components have been replaced...some before they failed .
When the truck is ready for retirement I will retire .
Large fleets can sell off used equipment with plenty of usable mi left as opposed to selling them off with too many mi. Would you buy something with 500K or prefer something with 800K ? Considering the price difference, of course. I've seen trucking co's along side the interstate with a yard full off junk equipment never to see the highway again. They basically ran it into the ground and there it sits. Construction equipment comes to mind. Tony Beets on TV show Goldrush has acres of originally expensive junk sitting there only good for parts, maybe. I might mention RV rentals also. The rental co buys a 1000, rents them for 1 year, and then sells them almost for what they paid originally.
3 to 5 yrs depending on how the truck is doing and what the market is like. If a 3 yr old truck is worth 70k then keep running it. If it’s worth 85 or 90k then sell it. Once you go past 3 yr 300k the value drops rapidly and in those 2 more yrs new trucks only get more expensive. Not to mention if the used market is crap you may take a beating on both ends at 500k. Both crap resale and higher cost new truck. But you can’t run it past 500k with no warranty and problems around the corner.
I do the same with trailers.
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