How do I choose a truck dealership to purchase my truck?

You’ve decided to become your own boss and become an owner operator, so you are starting the process of looking for a dealership to work with. Well there is more to it than just window shopping for the truck you like the best. You may think that it is best to just show up at the dealership with the manufacturer of truck you want and make a deal, but you would be mistaken to go in and complete that deal blindly.

This happened early on to me when I was buying my first car from a dealership. I found the car I wanted and started working with the salesperson without doing my homework properly. After negotiating the details we completed the transaction and I picked up the car. The salesman was not there the day I picked up the vehicle and needless to say some of the items that were discussed were not carried out on their part. They were little things, but even though the unit was used it was new to me and I wanted everything down to the new car smell if possible. I was young and naive in those days and didn’t pursue the matters to the best of my abilities. That lesson always left a bad taste in my mouth and to this day I will not deal with that dealership and that was over 20 years ago. The moral of the story is to not rush in without knowing who you are dealing with.

When buying a truck it is more important to know the people you are dealing with rather than the type of truck that buy, why? Because many of the trucks have the same components and can be ordered with the type of truck you want. In the old days if you bought a certain model truck it came with a certain type of engine, etc. Nowadays you can buy the truck manufacturer of your choice, order the engine type you wish, and spec the truck the way you like. So if that is the norm then the important part of the equation is dealing with a reputable dealership and as I explained earlier be able to trust the word of the person to carry out items negotiated during the purchase. The next piece of the puzzle is to make sure the dealership you work with has the flexibility, network, and support to get you the financing you need in order to be successful. Some dealerships deal with a bank and others have their own financing networks. This is a critical issue especially for new drivers becoming owner operators.

To begin your search gather information on several dealerships in your area, make a day to drive around and get a feel for their inventory, network, and personnel. Narrow your search down to three and then finally down to one that you feel very comfortable dealing with and are sure can deliver the specifications that you require. You may have to settle on some items, but don’t settle on items you require for employment or are important to your comfort as a driver. By doing things this way you will feel comfortable with your purchase, will feel good recommending a person to that dealer, and will create a lifelong relationship that can last your owner operator career. The first on my list would be the folks over at SelecTrucks Toronto. They have the knowledge and control to handle the above mentioned items. You can reach them at www.selectruckstoronto.com.

About the Author

Bruce Outridge is a business and leadership consultant for entrepreneurs and the transportation industry. He has over 30 years experience in the industry and is a leaders in helping people be successful in their businesses. For more information visit www.outridge.ca

Is it your time to purchase a truck?

How do you know when it is the right time to look at getting into business for yourself and owning a truck? With the economy just starting to recover and everyone hanging tightly onto their wallets it can be very scary as to whether it is the right time to start a business. The economy flushed a lot of companies out that weren’t operating properly and that was needed in many industries and as much as people hate to believe it may even of helped many industries.  This is a cleansing process that has to happen from time to time to keep the world revolving in a natural state. In speaking with many truck drivers many would tell you not to get into business now, but I beg to differ. In the business world a downturn like we just went through can be very beneficial and even create opportunities that weren’t available before. If you are the type of person that looks at the glass half empty then you may feel like the best idea is to stay away from the business all together. If you are an optimistic person then you will see this as a time of opportunity. In my mind the latter of you are correct. This is a great time for opportunity and getting into the transportation industry. Why is that you ask?

For those of you familiar with the industry you will know that we are going into a driver shortage that is even going to get worse in the near future. There is also a lot of equipment available from other companies and owner operators at great deals that can benefit someone new coming into the market. The third item is that people hopefully have woken up a bit as to operating a little smarter since the economy blew out and systems have been put in place in many companies to help owner operators and the transportation industry as a whole remain successful. The fourth area is people in general want control of their lives and having your own business even though it is hard is one of the ways of doing that. So how do you decide if you are ready for the world of transportation?

The only person that can answer that question is you. Evaluate where you are in life and if this will be a step up or a step back. If you’re already in transportation you probably know the industry and how it works so you will be ahead of the game. Are you where you want to be in your career, do you want to be in business for yourself, do you have the determination to succeed? These questions only you can answer. If you’re not in the industry as of yet and are looking at the opportunities from outside then you have a little more homework ahead of you. Investigate the industry; see if the lifestyle fits with what you want as far as family time, and so on. Plan on a date that you would want to have as a start up date, which will probably be about 12 weeks out or more if you don’t yet have the licence required and do your homework. Homework is the key to a successful career and business in the transportation industry and good planning can get you there.

About the Author

Bruce Outridge is a leadership and business consultant specializing in the transportation industry. More information can be found on his website at http://www.outridge.ca

How much are you paying by the mile?

When you’re a new or potential owner operator it can be very confusing as to what type of truck you should buy, how much you should pay for payments, and maintenance, etc. Add in the extra information received about running on a per mile basis and it changes the whole picture as to the type of truck you should buy.  So how do you figure this out?

First of all get all of the information you can in regard to a decent truck payment, maintenance costs, and shop time rates and so on. These are important so you know how much you may spend a month on equipment costs as a whole. Then figure out your per mile rate, which you can’t do until you do some homework on the type of company you want to lease on with. Let’s assume for the sake of argument that the company will pay you $1.00 per mile. I know that is low, but it makes for easy math. So you expect to drive 10,000 miles per month giving you a monthly income of $10,000. Maintenance costs should be budgeted about $1000 per month, and your truck payment on a quality used truck should be around $1500 per month. Now once you start to run you want to keep your maintenance costs and truck payment separate. When trying to figure out cost comparisons such as this then you can group them together. So you have $1000 for maintenance and $1500 for your truck payment. Together you have $2500 per month divided by 10,000 miles which gives you 25 cents per mile as your equipment costs.

Now as an owner operator you have to decide do I want to take the chance on a higher payment with a newer truck or take the chance of higher maintenance costs on an older truck? Since you’re reading the article anyway let me add my two cents, go with the latter option. If you buy a quality used truck you’re maintenance costs may remain low giving you more equity in your business, relieving stress because you have a lower truck payment, and keeping your cost per mile under control. If you buy the newer truck you may have the lower maintenance costs, but the higher truck payment will remain a fixed cost per mile that you can’t reduce. When you are starting out you want to keep that flexibility as you learn the ropes of the industry. Time flies when you’re in business and learning new things and before you know it you will be trading into your next truck. Remember manage your costs and maximize your profits.

About the Author

Bruce Outridge is a leadership and business coach specializing in the transportation industry. You can view more information about Bruce on his website at http://www.outridge.ca

Choosing the Right Truck

Choosing the right truck comes down to more than deciding on a colour, how many stacks it has, and so on, You have to know the type of work you will be doing with it, component size, and more. As mentioned in earlier posts homework is the best line of defence to make sure you get the truck that is appropriate for you. If you’re thinking of buying a truck it is important for you understand the company you may lease on with. If the company hauls flatbed and you buy a truck thinking it will handle the load only to find out that a year down the road they want you to pull a set of trains then you may be in for a hard lesson. That truck you bought may not have the drive train and power to get the job done. So when searching out companies make sure to investigate the total scope of their operation, you need to take into account changes within the next three years of your career so you can buy the proper equipment, changing trucks after a year can be mighty expensive and a real problem depending on the financial situation that you are in at the time. If you buy a truck that is not set up properly and change to gravel or an operation where you need wet lines and other add ons your truck may not be set up properly and that can get expensive as well. Never buy a truck based upon what looks good in the dealer’s yard, buy a truck based on the equipment you will need for the near future. Your bank account and career will be better off for it!

 About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry among others. He can be reached through his website at http://www.outridge.ca

How should I compare used trucks?

 

As usual when buying a truck you are not just buying a truck, you’re buying into a business. This has been discussed in prior posts so I won’t go into it again here. There is however some things that you must look out for and investigate in order to get a truck that will do the job for you and help make you money. As I always say the best place to start is by doing your homework and that can be started right at your kitchen table. I am going to assume that you have some type of focus as to the type of companies you may be leasing on with. If not then that is your first point to start with. If you’ve done that homework already then the next step is to get focused on the equipment you will need to get the job done. No you don’t need a great big long tractor to do city work; you’ll only look cool going in a straight line and it will make the general motorists mad at you for getting stuck in the intersection on a turn.  So decide on the type of equipment needed, do you need a truck with wet lines, a straight truck, will you haul oversized loads etc? Then start to break it down into your top three picks.

Take out a piece of paper and create three columns, one with the truck make you prefer, the requirements needed for employment, and your price objectives. Now spend a few days visiting dealerships that deal with that type of equipment and collect material on the trucks available in your price range. You should come home with a wealth of information, and don’t forget to evaluate the staff as to how you were treated, their knowledge, and so forth. Now compare the material completely to see the best deal for you. Make sure when comparing trucks you are comparing apples to apples. The components to watch for the most are engine power, transmission, wheelbase, suspension, axle spacing, 5^th wheel, and so on. Note that the coolest C.B. radio or stereo is not on the list. You did get the warranty information didn’t you? Compare that as well as that can be a major factor with a used truck. As much as I like chrome forget that for now, it doesn’t improve the performance of the truck or help you make more money. Those are the nice to haves that come later in your career. Whatever you do make sure the dealership or seller is reputable. Be very weary of those selling their trucks through a private sale. Remember a truck driver will put on about a 120,000 miles a year and your first truck should last at least three years before considering a trade. In my book, if you deal with good honest people, you will get a good honest truck.

About the Author

Bruce Outridge is a leadership and business coach specializing in the transportation industry. More information can be found on his website at http://www.outridge.ca

The Rosedale Group Leads First Installment of 2011 Driving for Profit Seminar

Press Release, for immediate release:                  

The Rosedale Group Leads First Installment of 2011 Driving for Profit Seminar        

 
Caledonia, Ontario                                                                            
March 10, 2011
 
     Rolly and Ron Uloth of The Rosedale Group will be participating in the “How We Did It” segment of the first installment of the 2011 Driving for Profit Seminar Series to be held at the Capitol Banquet Centre in Mississauga on April 27, 2011 starting at 9am.
     The Rosedale Group opened its first terminal in Hamilton in 1969. Today Rosedale has terminals across Canada and the U.S.A. The Rosedale Group focuses on providing personalized and quality transportation services to their customers and have developed strengths in specialized markets including; transportation, warehousing and distribution of flooring materials, overnight LTL services between Ontario and Quebec, LTL and Truckload services to Western and Atlantic Canada and trans border service between the U.S. and Canadian markets.
     Rolly Uloth is quick to point out that the Rosedale Groups success is dependent on their entire teams’ effort. The Rosedale Group believes that throughout the evolution of their business it is still very much about relationships. Relationships with their customers, suppliers and with the over 400 people who make up their organization.
     The Rosedale Groups slogan is “Our people Make It Happen.”
     Come join the Driving for Profit sponsors, SelecTrucks, Pearson Dunn Insurance and Truck News at the Capitol Banquet Hall on Dixie Rd in Mississauga.
     The investment to attend the event is $85.00. To register for the event go to www.drivingforprofit.com.  
For more information on Press Release:

• Kim Richardson, President, KRTS Transportation Specialists Inc.  800-771-8171
• Aaron Lindsay, Fleet Service Manager, NAL Insurance Inc.  1-800-265-1657

Truck Warranties -Which one to buy?

When you start looking to purchase your first truck and evaluating the different warranties on the market you may find it hard to evaluate which one is best for you. This is especially true if you don’t know how many miles you will run in any given time. My advice is get as much as you can. First you have to figure out roughly how many miles you will run in a given year. For long haul drivers you are looking at around 10,000 miles a month or even more. Multiply that by 12 and 120,000 miles will be the average. With that in mind a 50,000 mile warranty isn’t going to take you very far. Realize that your first truck needs to last at least three years before it is time to trade it in so you want your warranty to go as far as possible.

Once you’ve evaluated the miles you need to look at the components covered in the warranty. Remember if a motor blows on a truck you could be in for a repair bill that exceeds $15,000 so coverage is essential. You want to make sure all of the major components are covered within the next three years. Go over warranties with a fine tooth comb to make sure you are clear on what is covered. Ask lots of questions and make sure you are comfortable with the answers.

After components look into other programs such as towing, off-site repairs and what possibilities are available in those areas. Tractor trailers require special tow trucks and costs are a lot higher than with a car. Towing coverage may be very beneficial if things break down on the road.  Other areas to review are service calls, labour charges and so on.

So how do you track all of this so when buying a truck you ask the right questions? The best way is to create a list of possible items to cover when you begin looking for a truck. Another idea is to take a tape recorder with you so you can go over the answers later and take notes. Be sure to let the sales person know you are recording the conversation. The last part is to deal with knowledgable people that care and with the track record of SelecTrucks you know where to start.  

About the Author

Bruce Outridge is a leadership and business consultant in Southern Ontario. He specializes in the transportation industry. He can be reached at http://www.outridge.ca

How early should I start looking when purchasing a truck?

As I talk with many people through the transportation industry some questions always come up, how do I make money; and how do I purchase a truck? The first question can be answered through some homework, check out the blog How to be a Successful Owner Operator post. The second question can also be answered with plenty of homework, but also time. A truck purchase is a big deal so make sure you leave yourself lots of time to look around. Many people when starting a business like to wait until they are ready to get going to learn more about it, however I believe you should start as soon as possible. That is especially true with a truck due to factors like availability, type of unit and so on. How do you start?

As mentioned in earlier posts do your homework. Begin with a business plan and the type of truck needed for the work you will be doing. You don’t want a logging truck to haul around a van trailer and you certainly don’t need a truck decked out with wet lines and heavy front end to run around town with. That giant bunk may look really cool but do you need it to run two hour relay switches. So your first action item is to find people you can trust like the folks over at SelecTrucks. Talk to them about what comes available, how long they stay in their system, how often they come available, and so on. Let them know your needs, do you need an automatic truck, a day cab, heavy front end, and so forth. If you leave them lots of time they can find the truck that best suits you many times at the pricing you are looking for. They will let you know what is realistic and what is hard to find. If you live in an area that is all cities you may have a hard time finding a logging truck. These types of decisions are very important when buying a truck, especially your first truck. This also gives you enough time to arrange financing, look for job opportunities and more.

As mentioned do your homework. A trip to SelecTrucks should be your first stop.

About the Author

Bruce Outridge is a business and transportation consultant in Ontario Canada. He can be reached at http://www.outridge.ca

Maintaining a Truck

Want to know the question most people forget to ask when buying a truck or an automobile? How much maintenance will it require? When people buy a car most of the time other than basic oil changes and tune ups you wait for the pieces to fall off or break before replacing or fixing them. With a truck however, that is not what we would call a maintenance schedule. Of course an older truck may require more care than a new truck, but if it has been taken care of by previous owners then a used truck is your best bet. This is especially true if you’re just starting out as an owner operator in this industryand need something cost effective to get started. Any reputable company will have a required maintenance schedule for its fleet whether a company truck or not.  Many of them will not let you run unless the criteria has been met within a certain time frame. Now with my car if I don’t do the tune up this month it won’t affect my income unless it breaks down. If you own a truck and due to a missed inspection or maintenance requirement they won’t let you haul a load then that directly affects your income and that can be a big problem. So what do you do?

First do your homework! Look into different carriers and ask questions about there maintenance programs and schedules. Next talk to some different shops in your area that fix trucks and ask how they charge for repairs, booking schedules and more. Don’t assume you will do the work yourself because regulations, equipment, and time frames may not allow that to be done. Once you have that knowledge when purchasing the truck ask the sale staff for records on maintenance of the unit and any warranty programs available.

With this information in hand you can now sit down and create your business plan figuring out your income and how much you need to set aside based upon the information you’ve gathered. That should bring you to a number per mile that you need to set aside for maintenance on an ongoing basis. If you need help with this then look into a system such as the ATBS System that can help with budgeting, business consulting and more. If you want more information on starting a business check out the earlier blog post “Starting a Successful Business as an Owner Operator”. As mentioned before, do your homework!

About the Author

Bruce Outridge is a transportation consultant for professional drivers and owner operators. For more information visit his website at http://www.outridge.ca

Putting the Pride in your Ride

I know, I know, you want that chrome monster of a truck, but it is your first purchase and the feeling is less than exciting. Patience is a virtue my friend and having the biggest and the baddest ride should not be your top priority. There are ways however of making sure you are setting yourself up in the right direction for success.

As a driver there is a certain pride factor from driving a clean machine, because it represents status and professionalism. However when becoming an owner operator there is much more to think about and the satisfaction can come from different areas. The first area is to be excited that you have begun the journey as not only a professional driver, but as a business owner. Making a purchase with the right equipment and right people is a major step forward on the road to success. For more on that read the recent post called “Feeling Good Purchasing a Truck”.  The team at SelecTrucks takes the comfort factor to heart by making sure you understand the steps and feel comfortable before purchasing a truck.

Once you have completed the purchasing step of buying a truck, the second step is to have an action plan to succeed. Have a business plan with all of the steps need for success and manage your business. Once you have this step under control you can begin the third phase of putting the pride in your ride. What is that you ask?

The third phase is the maintenance and upkeep of the truck. Following a proper maintenance plan is crucial to having a profitable and successful ride. This is also the best way to feel the pride in your ride. Keep that truck spotless and maintained; add small goodies to make it unique and you will have a truck that you can be proud of. By keeping the truck in good condition you can increase your trade in value, save yourself headaches during inspections, and put money back in your pocket.

So buy from a reputable dealer, have a plan for success, and have a good maintenance schedule and you will be proud to own the truck you do. You’ll feel the “Pride in Your Ride”

About the Author

Bruce Outridge is a leadership and business consultant for the transportation industry. More information on his products and services can be found at www.outridge.ca