To Spec Smart, Buy with Resale In Mind, Says Kenworth Official
If you plan to buy a new truck, Kregg Baur, used-truck manager for Kenworth Truck Co, has some simple advice.
"Research resale value. There are many way to do this," he said. "Ask yourself, `How many trucks of the model I'm planning to buy are likely to be on the used-truck market when I sell?' Second, walk through a used-truck lot and examine the model you're looking to buy. How does that compare with competitive models? And look at six- to eight-year-old models by the truck manufacturer. The better a truck holds up and the longer its total life expectancy, the higher the resale value. Remember, whoever buys your used truck considers its eventual resale value, too."
While how a truck holds up over the years is critical, so is cost-per-mile (CPM). Baur suggests that before you buy new, determine your servicing costs. "Not all trucks are the same when it comes to maintenance expenses. It's why full-service leasing companies have different CPM costs for different models of trucks they lease to their customers. Combined with resale value, you can determine your life cycle costs, which can then be figured against the price you're paying upfront for the new vehicle. In many cases, what you'll conclude is you'll actually pay less for a premium truck than you will for an inexpensive truck. Don't let sticker price determine the best value."
Which truck brand you are trading is only part of the equation when it comes to getting maximum value for your truck. Just as important is how you specify it. Spec well and you'll be rewarded; spec without considering the impact on the aftermarket, and you might have an unsellable truck.
Components to consider are:
- Engines: The higher the horsepower, the better. If acquiring an engine that can be down/upgraded, be sure the transmission and exhaust system can handle an upgrade.
- Transmissions: 13- and 18-speeds with overdrive bring a premium at trade-in time.
- Engine brakes: This option will more than pay for itself come trade-in time.
- Air-ride suspension: Many over-the-road trucks have this feature. Without it, a truck will be harder to sell, lowering trade-in value.
- Aluminum wheels: Not only do they save weight, but they're also stylish and are a "must-have" for owner-operators. They will usually pay for themselves at trade-in time.
- Raised-roof sleeper with double bunk and high-end interior package: Many wholesalers simply will not buy a sleeper without a double bunk setup.
- Aero package: If you buy an aerodynamic truck, make sure the full aero package is purchased. If fairings, for example, have to be added by a dealer at the wholesale level, it's significantly more expensive than addding as a factory option. The net result will be a big deduction on resale value.
- Airslide fifthwheel: This option doesn't cost that much as a factory option and has a nice payback.
- Other items that offer good payback: dual exhaust, dual fuel tanks, and stainless steel air cleaners.
The last factor Baur recommends for maximizing used-truck value is timing. "While determining the climate of the used-truck market is a bit like timing the stock market, you should have a plan as to when your trucks should hit the market," he said. "Typically, you can get the best resale value by selling before the warranty runs out. This is usually between 300,000 and 500,000 miles.
