Q&A: When keeping an old truck costs more than a new one

Are you currently seeing small motor carriers gravitate more toward buying new trucks or used ones, or not buying at all?

A lot of smaller carriers are being more cautious about replacing equipment right now. With current equipment costs, fuel, insurance and maintenance expenses on the rise, it makes it harder to commit to purchasing new equipment. So, some operators are holding onto trucks longer than they normally would.

Some are even closely looking at refurbishing older equipment over purchasing new. This model can work for a period, but eventually the operational costs begin to outweigh the cost per mile. As a truck ages, maintenance costs, downtime and fuel consumption will begin to outweigh the savings of delaying replacement. We encourage customers to look at what the truck is costing them to operate rather than making the decision based on purchase price alone. This is where leveraging strong partnerships comes into play.

What are the biggest expenses that typically come from aging equipment?

Maintenance and repair costs typically increase as equipment ages, particularly once a truck is out of warranty. The bigger expense, though, is often the downtime around the repair. A truck in the shop can mean lost utilization, missed loads and reduced productivity in addition to the parts and labor bill. Fuel efficiency and residual value also need to be part of that calculation. Fleets should look at the full cost of operating an older truck over time, not just what they spent on the last repair.

With rising maintenance costs, what's one step execs at small fleets can take to keep costs under control?

Move from reactive maintenance to a more proactive approach. Service history, regular inspections and vehicle data can help fleets identify issues earlier and schedule work before a problem becomes a roadside failure. The driver will always be one of the most critical pieces to knowing if the equipment is running well or not. Emergency repairs also come with added costs, whether that is towing, expedited parts, unplanned labor or lost time. Staying disciplined around preventive maintenance gives a fleet more control over when and how that money is spent.

If a fleet owner tells you they can't afford to buy a truck right now, how do you respond?

To determine the most economical option for your operation, you need to know what your existing equipment is costing you in total. That could entail looking at maintenance spend, downtime, fuel consumption, utilization and where the truck is in its lifecycle.

If replacement makes financial sense, buying a truck outright is not the only option. Different financing structures and leasing options can give smaller fleets more flexibility around cash flow and monthly costs. The right approach depends on how long they plan to keep the truck, how it will be used and what works for their business.

My goal is not to convince a customer they need to buy a truck. It is to help them understand the numbers well enough to make the best sound decision that works for their business.

How would you advise small motor carriers to think about total cost of ownership when weighing the purchase of equipment?

Start with the cost to operate the truck, not simply the price to purchase it. Fuel, maintenance, downtime, warranty coverage, driver productivity and residual value all affect what that truck ultimately costs the business. What level of support are you getting when a problem does occur? What does that support look like?

Small fleets may feel those expenses more quickly because they have fewer trucks to absorb downtime. If one truck in a five-truck fleet is down, that has a very different impact than one truck in a fleet of 500. Looking at cost on a per-mile or annual basis can help operators compare keeping an existing truck with moving into newer equipment and make the decision based on the full lifecycle rather than one expense at a time.

What's your favorite Peterbilt model and why?

I’d have to say the Peterbilt Model 589. It keeps the traditional look that we are all so used to seeing operate up and down our highways. Doing the hard jobs and being proud while doing it. You incorporate today’s advancements in technology, drivetrain optimization, creature comforts and overall drivability—all wrapped up in one, while having the ability to order one with more option codes than any other OEM in the market. The Model 589 truly is designed to wrap itself around the driver, not the driver around it.