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Page 1: Buy a Truck Article

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Page 2: Buy a Truck Article

heatruekLeave no stone unturned

and no detail is too small when trying to maximize value

- By Craig Smith, Manager of Hickman Truck Centre

Wi'""J,.,11 ",.' """,1! d : Tl'"H:: :survival can often come down toknowing how to "buy smart."

Medium and heavY-dutY trucknameplates have shifted dramatically in

the last few years, with some originalequipment manufacturers being dealtout altogether. After 35 years in thebusiness, I can see how buying smart ismore of a priority today than ever before.

lgnoring financial variables for themoment, and concentrating on thefundamentals of buying the right truckfor the right job, you have to verify thatyou're buying the best technology foryour application; and compare long-

term value from the suppliers that bestmeets your specific requirements.

First of all, forget the word "price," andreplace it with the word "value." Buyinga truck on price invariably means thatsomewhere you will comPromise on

important factors such as quality, proper

specifications, capacity, entry or exit,

etc. Secondly if you don't know how toresearch on the lnternet, find someoneto teach you. Thirdly plan ahead andleave yourself lots of time to buy your

truck. Avoid the "big-breakdown-now-l-

have-to-buy-quick" syndrome.

How to buyl. You need to know exactlY what Youwant the truck to carry. lmagine whatthe perfect truck for you looks like. Howmuch do you want to carrY Per load?What is the package size? What is thepackage weight? How and where will itbe loading and unloading? What bodY

height do you need? How flexible do you

need the carrying capacity to be?

Why? To determine the required frontaxle and rear axle weight ratings, thesize and dimensions of the bodY tomeet your needs, and to give You astarting point to find what manu-facturers can supply what you need.This is also the basic information thatyour truck salesPerson should beasking when you go shoPPing.

2. Where will you be operating thetruck? Open hi$hwaY? Downtownstreets? Gravel pits? Residential areas -established ot under construction?What restrictions will you have - loadingdock height, excavator size, road width'turning radius, parking areas?

Why? This will help you fine-tune therequirements and make sure you don'tmiss an imPortant oPerational

requirement. For examPle, a longwheelbase vehicle is harder to turn Intight quarters, but is a better highwayride. A cab-over-engine truck is shorterwith better visibility for downtowndeliveries.

3. What life cycle do You want toachieve with this truck? The primarymeasurement you want to calculateis cost per mile (CPM). This includesevery possible cost of the vehiclefiom purchase price, resale value, fuelcost, maintenance costs, driverretention, etc.

Why? Your expected life cycle for thetruck - in time or miles - sets thegoalposts for calculating exactly whatyour transportation cost target will be.This is a critical calculation in

budgeting and monthly cost monitoring.

4. Research. Start with a broad!nternet search such as "deliverytluckr" "dump truckr" oI "refusetruck," specific to Youl needs.Research the manufacturers andoperators in businesses similal toyours. Have your printer ready to printthings you like, and a binder toorganize and save Your findings.

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How to Buy a

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Page 3: Buy a Truck Article

Why? This will help your eventualsalesperson find or build the right truckfor your application. When a customershows up with the homework done -knows what they want and knows whatis available in the current market - iteliminates a lot of the groundwork andlets the salesperson know you havesome knowledge of the truck you want.

5. Narrow down your search to amaximum of three suppliets. lf you'rebuying a truck complete with a bodY,

clarify how maintenance and warrantywill be handled - will it be one-stopshopping at the truck dealer, or do youhave to buy the body from a seParatesupplier? Ensure that all suppliers candeliver exactly what you want, whenyou want it, Don't wait for your busYseason. Leave lots of time.

Why? With so much on the market, itis easy to get overwhelmed withoptions. Keep the process manageableand in a realistic time frame andminimize stress by focusing on your topthree supplier choices. Also considerall the factors that will apply after thepurchase, such as the location of thedealer and service outlets.

6. Ask for a signed, detailed quoteftom each supplier. Make sure theYsupply the complete vehiclecomponent listing; extended warrantyoptions (always consider theseclosely, especially major componentsand towing); quote expiry date andtime; vehicle cost (including body andany add-ons); license; environmentalcharges; taxes; finance oPtions;vehicle brochures and any applicablecompany-offered options or programs.

Why? Tell them your purchasedecision depends on the total packagethey will deliver to you over the lifecycleof the vehicle. Accept absolutely noverbal agreements. Get everything in

writing, signed by a company officer.Ensure the salesperson understandsthat this is not just a vehicle saletransaction, but rather the start of a

business relationship where youconsider every dollar spent asimportant as the truck purchase itself.

Now is the time to study your options,and review with a trusted advisor.Choose your preferred suPPlier, asecond choice just in case, and Yournegotiating strategy.

7. Decide on the best deal. Before you

sign the dea! review all your notes tomake sure nothing was overlooked.Don't hesitate to ask for a specificbenefit to be written into the deal. Adealer can often supply a support optionat little or no upfront cost that couldsave you a bundle later on. When you'veselected a supplier and you're ready toorde6 ask for a list of programmableparameters for the unit. You can selectdozens of different settings for all kindsof operating conditions, and most canbe set at the factory.

Why? Fleet examples may be: writtenrepair estimates emailed to You;access to service and Partsinformation; special terms on account;a specif ic repair pre-authorizationprocedure. This list is only limited byyour needs and imagination.

8. Sign the deal. Remembet, if it's notin writing, it doesn't exist. Morebusinesses are being certified underthe lnternational Organization forStandardization (lSO) and it's easy toincorporate many ISO guidelines intoany well-run business. Writtenprocesses and agreements signed offon by all parties is a key ISO practice.

Why? Ensure your truck agreement is

crystal clear to all concerned, and

everything is documented to sort outany future confusion.

9. When the truck arrives, do Yourfinal inspection when the unit is readyto be driven off the lot. This ensuresthat everything included in the deal iscompleted as per your satisfaction.

Why? Before-the-cheque is a muchbetter time to confirm 1OO Per centcompliance than after-the-cheque.

lO. Followup after the sale. Makesure you meet the service and Partsmanagers and set uP Your firstservice appointement before you leavethe dealership. Have every driver readthe driver's manual for the vehicle andmake sure they understand the safetyrules and regulations for the vehicle.Ensure every driver and dispatcher isaware of the preventive maintenanceschedule so reminders and doublechecks are built in.

Why? Don't think that because Youhave a new truck that your worries areover. Logically you don't expect to havemajor problems, but regimenting agood service and maintenanceschedule can prevent problems fromappearing later in the life of the truck.This helps reduce the life cycle cost permile expenses on your new vehicle. r