FREE TO FAIL
Seasoned Expediter
Well I thought I would relate a situation that had occured last week concerning a used truck and a dealership. I spoke with a dealership concerning a good used truck. They sell a lot of expediter trucks, they had nothing in stock at this time that suited my needs for the price i was willing to pay. However i was informed that the had a unit coming in in the next couple of days that might suit my needs. The salesmen provided specifications and I indicated an interest in viewing the truck. The truck was to be priced in the mid 30k range. So far so good.....
I was very much looking forward to viewing the truck and making a deal. That night I continued to search for a truck on the internet and low and behold the truck the dealer had described appeared on the internet for sale from an individual who had some bad luck and had to exit the industry. (seems like all the trucks for sale by owners got a hard luck story attached to them) In any event I spoke with the owner and found out that the truck was going to be picked up by the dealership. THE PRICE THE DEALERSHIP PAID WAS $10,000 less then what it was offered to me for sight unseen.
The next day I get a call from the dealership saying the truck was available for view. I indicated that I knew what the dealership had paid for the vehicle and was unwilling to pay a $10,000.00 upcharge for a truck that just got to his parking lot. The dealer indicated that he knew i knew this information but my price was a special price as the truck was going to be listed for an additional $ 3,000.00 more then it was offered to me for. So instead of trying to sell a truck for a reasonable markup (I feel 12% to 15% is justifiable) which I would have been willing to pay, the dealer is just going to sit the truck and get the next O/O in line looking to make a 33% markup. ( A professional Dealer would have simply said well sir I cant sell you the unit let me find you something else)
My point is this why are these dealerships eating their young!!!! They are out to maximize the short term profit on 1 unit vs starting a relationship with an O/O that might last for years. Most successful O/O will be purchasing multiple units in their careers and may even start fleets. Granted some owners will fail, but it is much the same in every industry. I beleive dealerships have alot to do with the failure of O/O's due to the upselling and failure of the dealer to spend the time to make sure the O/O can afford the unit or worst of all simply putting together a rapist financing package. I get the impression that as long as you "gots the credit you gots the rig.". The dealerships put financing packages together that create a situation that puts the O/O in the truck but they really never actually own it due to either poor leases or negative equity. I see a lot of trucks for sale that are being sold for well over their value due to the balance owed on the unit. I cant buy the unit as its use value is significantly less then the purchase price, i do feel for the owners though. They got caught in the trap and are trying to get out without having to chew off their own leg!
Fellow newbies if your trying to purchase a truck spend a lot of time looking, researching and most importantly understanding your financial situation. The last question to ask is how much am i going to make... the first is what can I reasonably afford. ( it is interesting that a fair amount of the newbie questions on this site involve how much can i make..} Have a budget and a plan of action before you make the first call on a truck. Buying the right tool for the job at a fair and affordable price will go along way to making sure your first year on the road is not your last.
I was very much looking forward to viewing the truck and making a deal. That night I continued to search for a truck on the internet and low and behold the truck the dealer had described appeared on the internet for sale from an individual who had some bad luck and had to exit the industry. (seems like all the trucks for sale by owners got a hard luck story attached to them) In any event I spoke with the owner and found out that the truck was going to be picked up by the dealership. THE PRICE THE DEALERSHIP PAID WAS $10,000 less then what it was offered to me for sight unseen.
The next day I get a call from the dealership saying the truck was available for view. I indicated that I knew what the dealership had paid for the vehicle and was unwilling to pay a $10,000.00 upcharge for a truck that just got to his parking lot. The dealer indicated that he knew i knew this information but my price was a special price as the truck was going to be listed for an additional $ 3,000.00 more then it was offered to me for. So instead of trying to sell a truck for a reasonable markup (I feel 12% to 15% is justifiable) which I would have been willing to pay, the dealer is just going to sit the truck and get the next O/O in line looking to make a 33% markup. ( A professional Dealer would have simply said well sir I cant sell you the unit let me find you something else)
My point is this why are these dealerships eating their young!!!! They are out to maximize the short term profit on 1 unit vs starting a relationship with an O/O that might last for years. Most successful O/O will be purchasing multiple units in their careers and may even start fleets. Granted some owners will fail, but it is much the same in every industry. I beleive dealerships have alot to do with the failure of O/O's due to the upselling and failure of the dealer to spend the time to make sure the O/O can afford the unit or worst of all simply putting together a rapist financing package. I get the impression that as long as you "gots the credit you gots the rig.". The dealerships put financing packages together that create a situation that puts the O/O in the truck but they really never actually own it due to either poor leases or negative equity. I see a lot of trucks for sale that are being sold for well over their value due to the balance owed on the unit. I cant buy the unit as its use value is significantly less then the purchase price, i do feel for the owners though. They got caught in the trap and are trying to get out without having to chew off their own leg!
Fellow newbies if your trying to purchase a truck spend a lot of time looking, researching and most importantly understanding your financial situation. The last question to ask is how much am i going to make... the first is what can I reasonably afford. ( it is interesting that a fair amount of the newbie questions on this site involve how much can i make..} Have a budget and a plan of action before you make the first call on a truck. Buying the right tool for the job at a fair and affordable price will go along way to making sure your first year on the road is not your last.
