When you’re buying a truck (click here for more), the purchase price is easy to discuss. It’s listed prominently, brought up early in negotiations, and can even be the deciding factor when you make your offer. But that’s just the upfront cost. For a working truck, there are many other factors to consider that will determine what the total cost of ownership is over the life of the vehicle.
Things like fuel consumption, servicing, downtime, tyres, insurance, financing, and resale value can all have a significant impact on how much you’ll ultimately spend on your new truck. A cheaper truck can end up costing you more money if it spends a lot of time in the shop or isn’t able to handle the loads you need it to. That’s why it’s important to think beyond the purchase price when evaluating your options.
Operating Costs Extend Beyond the Sticker Price
Trucks aren’t one-time purchases, and they come with ongoing costs. While some are expected and predictable, others are unpredictable and may only occur when a part breaks down or circumstances change. Here are the most common ongoing costs you’ll encounter with your truck:
- Fuel
- Maintenance and parts
- Tyres, brakes, fluids, and other consumables
- Registration, insurance, and compliance
- Financing costs
- Driver wages and productivity
- Unscheduled repairs and roadside assistance
- Resale value
Not every truck model will incur these costs at the same rate. A fuel-efficient truck might be great for hauling loads over long distances, but it might not be the best option for short-haul trips with multiple stops. On the other hand, a more expensive truck could be equipped with components that are more fuel-efficient, require less maintenance, or provide additional comfort for your drivers during long shifts.
Downtime Costs More Than Repairs
Repairs are costly, but there are hidden costs that go along with them. If your truck isn’t available, you may lose business or have to pay someone else to deliver your goods. Drivers are also left idle if their truck is broken down. You need to know if parts are readily available and if there are trained mechanics who can do the job right away.
A truck that requires a specialised part that takes days to get can cost you far more than the cost of the part alone. This is especially true when buying used trucks. Make sure you know the truck’s service history. You want to know if it was regularly serviced or just taken to the shop when something broke. Any issues related to cooling, transmission, emissions, or electrical problems should be investigated thoroughly.
Is the Truck Right for the Job?
Over-specifying a truck means paying for unused capacity and driving up your fuel, tyre and finance expenses. Under-specifying it increases wear and tear, limits your payload and raises the chances of costly breakdowns. So, you want to buy a truck that is suited to the actual task you need it to do, and resources like Aus Truck Market can help you explore suitable options.
Think about your truck’s usual duties:
- What will the average daily load be?
- How many kilometres will it travel weekly?
- Is it working primarily in town, on the highway or both?
- Is the body style appropriate for the type of loading equipment and goods?
- Will there still be enough room in the payload allowance for the body, fittings, fuel tank, required equipment and any other additions?
That last point is often a practical consideration worth reviewing. The maximum gross vehicle mass stated on the paperwork might seem acceptable, but the addition of trays, toolboxes, cranes or winches, tanks, water pumps, the driver’s personal equipment, etc. reduces the available payload. Carrying more than what the truck was designed for can result in increased wear, safety risks and penalties.
Fuel Efficiency Adds Up Over Time
The impact of fuel consumption adds up over tens of thousands of kilometres. A truck that uses slightly less fuel per trip might pay back a higher upfront cost over its working life, particularly as fuel prices increase.
Engine technology isn’t the only factor affecting fuel consumption. Aerodynamic design, drivetrain, tyre pressure, load weight, road type, idle time and the way the truck is driven also play a part. Rather than looking at ideal fuel usage statistics, calculate the fuel consumption you can expect from a particular truck, given your own operating circumstances.
Resale Value Shifts the Final Calculation
When you’re finished with the truck, it still has resale value (check https://finance.yahoo.com/personal-finance/insurance/article/car-depreciation-223223757.html for more details). The demand for used trucks, their age and condition, service record, kilometres covered, body style and the availability of replacement parts affect how much you’ll get for them.
A cheap truck that loses a lot of its value over time could turn out more expensive in the long run than a more expensive truck with a better resale market. Keep good maintenance records, fix mechanical issues promptly and avoid modifying the truck for jobs it wasn’t designed to do, to help preserve its resale value.
Before Making Your Decision
The purchase price of a truck is just one factor to consider in a sound buying decision. Compare the projected operating costs of each truck over the likely length of time you will own it rather than simply comparing the sticker price. Estimate the amount you’ll spend on fuel, servicing, repairs, insurance and finance over a year, along with any lost earnings due to downtime, then subtract the expected resale value.
Get the truck’s service history, check how much payload you will have with the body fitted, and get a price for the next scheduled service before you agree to buy.
