5 Key Considerations in Planning Your Truck Purchases

You need a fleet that not only meets your current requirements but also meets the future needs of your business. Planning your fleet requirements in advance is an essential part of fleet management and procurement. This will allow you to save time, money and ensure you get the right truck for the job. Reducing operating costs and anticipating project timelines can help you improve competitiveness.

Start by identifying your purchase requirements using the following steps:

• Assess your existing fleet inventory – Identify trucks that will need to be replaced or upgraded based on age, condition, etc.
• Evaluate future demand, projects and work – Do your best to determine equipment specifications and quantities required for specific customer applications.

The truck supply chain has many milestones from the factory floor to your door. Early planning will help you ensure that you have trucks on the ground when you and your customers need them. It will also allow you more control over the various inputs in the purchasing process, including the multitude of financing options.

Follow these key tips to improve truck fleet management, planning and procurement:

• Build times and delivery dates – The current average industry build times for new trucks are between 6 to 12 months. It is crucial that you begin assessing your truck requirements for 12 months from now. This will give you the freedom to order a truck as per your specifications and needs as opposed to limited in-stock options that may not work for your operation.
• Truck model changes – With every new model change there is often an increase in price or change in specification. Planning will allow you to avoid a cost increase on your asset or alternately pick a newer model that would meet your needs better.
• 3rd Party availability – In addition to buying the cab, you need to plan for the chassis. You will need to consider the delivery timelines of the cab as well as the chassis which is subject to the delivery times of the body builders.
• Finances - Understanding your needs in advance will help you assess your truck financing options for your projects. Determine the structure that would best suit your needs and who can ultimately provide your business with these requirements.
• Tax planning – There are many advantages to planning for your purchase date, such as optimizing your business tax filing. For instance, a truck purchased before December 31 would be eligible for the half-year depreciation rule even though it's only owned for a single day*. This can allow you to free up capital for other operational expenditures. Planning your purchase in consultation with your accountant will help you generate additional working capital when you need it. 

The benefits of proactive fleet management and planning will help you navigate some of the critical milestones in new truck purchases. The additional time at hand enables you to shop around for the right equipment and truck financing. A clear purchase plan will help you optimize your finances and manage your accounts effectively.
 

*Always consult a licensed accountant directly for tax advice.