The expansion in e-commerce, often called the “Amazon effect,” is driving demand for brand spanking new and used day cabs.
Day cab popularity has also been driven by the decline in long-haul rates and increasingly stringent corporate safety mandates.
Whether your fleet buys or sells used day cabs, there are various decisions that help maximize the total cost of ownership (TCO) and increase resale value.
Day Cab Resale Trends
As large shippers like Amazon and FedEx move toward faster delivery (often same-day or next-day), demand has shifted toward day cabs which can be higher suited to regional, short-distance routes.
Amazon has greater than 2,500 delivery service partners (DSPs) across the U.S., employing about 200,000 people. FedEx Ground now has a network of over 6,000 independent delivery contractors in North America.
Residential deliveries yield lower margins for these firms than business deliveries. They’re searching for reliable, efficient used day cabs that may still meet compliance and driver safety requirements.
This surge in e-commerce trucking has created a nationwide surplus of used day cabs, creating a volatile buyer’s market. Some firms are delaying purchases resulting from the difficult freight rate environment and the general freight recession over the past several years.
The Fleet Appeal of Day Cabs
Nonetheless, some fleets are buying used day cabs to complement their recent trucks, attracted by the lower initial purchase price (often about one-third of a brand new truck), fuel efficiency, and proven reliability.
Used day cabs help “right-size” a fleet because they’re ideal for short-haul applications like port drayage and warehouse-to-delivery runs. Since day cabs are commonly spec’d for local work, their resale market will be highly prone to regional oversupply. There are two prevailing customer segments: the compliance market and the vocational market.
A surge in e-commerce trucking has created a nationwide surplus of used day cabs, making a volatile buyer’s market.
Small- to medium-sized regional fleets with corporate buyers comprise the core of the compliance market. They often purchase used day cabs for specific contracts with firms akin to FedEx or Amazon.
These buyers prefer late-model used trucks with specific, non-negotiable specs. Their chief concern is finding the correct truck, so that they will be less price-sensitive than vocational buyers.
As well as, their purchases will be influenced by compliance mandates, akin to those issued by the California Air Resources Board (CARB). Although CARB has approved amendments to the Advanced Clean Trucks (ACT) regulations that give manufacturers and resellers more flexibility, the regulations remain rigorous overall.
Nitrogen oxide (NOx) emissions standards are very strict, and California’s Clean Truck Check (CTC) requires mandatory twice-a-year emissions testing.
For vocational buyers — including farmers, loggers, and industrial haulers — older, more rugged trucks get the job done. These customers need immediate utility at a bargain price.
Key Specs That Increase Resale Value
Listed here are a few of the used day cab specs that increase resale value:
Power Take-Off (PTO) preparation involves a truck configured with the mandatory components, wiring, and software to permit a PTO unit to be installed. It means the truck is “plug and play” ready for vocational equipment without expensive modifications to the transmission or engine. A PTO prep option will be chosen on the time of latest truck purchase and, given its value, typically repays for itself within the secondary market.
Advanced safety systems are a must in lots of resale opportunities. Collision mitigation systems have turn into mandatory for a lot of fleets over the past several years resulting from the protection advantages. In recent months, blind-spot detection has gained popularity and is now a FedEx requirement. That is an emerging requirement within the secondary market and can likely turn into more vital in the approaching years because it is adopted more on the brand new truck side.
Latest steer and drive tires are non-negotiable for many buyers, especially FedEx contractors.
Used day cabs help “right-size” a fleet because they’re ideal for short-haul applications like port drayage and warehouse-to-delivery runs.
Mileage and Condition Aspects
Used day cabs should all the time be assessed by lifecycle stage to find out whether the repair cost outweighs the potential return.
The industry norm for day cab usage is about 75,000 miles/yr, or 300,000 miles for 4 years of service. Resale value takes successful when mileage exceeds 300,000, and anything over 500,000 often means the vehicle is headed for the wholesale/auction market.
Outside of mileage requirements, engine hours are vital for a lot of buyers. Excessively high hours can raise buyer concern, even when the mileage is low. Significant rust on the frame and body damage are also major value detractors for day cabs.
Maintenance and Warranty Considerations For Used Trucks
The cleansing and substitute of a day cab’s diesel particulate filter (DPF) has a significant impact on each TCO and resale value.
DPFs are critical to emissions compliance, they usually’re expensive to exchange, often within the $3,000 range, including parts and labor. DPF ash count (or “ash load”) measures the noncombustible material that accumulates within the filter. Soot burns off, but ash stays, reducing filter capability and requiring cleansing or substitute at across the 400,000-mile mark.
Remaining new-truck warranty on a day cab is a key value driver since it provides coverage for potential high-cost repairs, akin to the $10,000+ required for an after-treatment system. If there isn’t a energetic warranty coverage, savvy operators often add a used truck warranty on the time of purchase to guard their investment.
As large shippers like Amazon and FedEx move toward faster delivery (often same-day or next-day), demand has shifted toward day cabs which can be higher suited to regional, short-distance routes.
Increasing Day Cab Resale Value
Many firms are actually diversifying their fleets, using recent and used day cabs to realize strategic goals.
It’s vital to have warranty coverage within the secondary market to raised protect against problems that may arise with used equipment.
The explosive growth in e-commerce deliveries will proceed throughout this decade, so the buying and selling of used day cabs will play a pivotal role in most fleets’ financial success.
The fleets that understand the needs of the compliance and vocational resale markets will dramatically reduce TOC while commanding the best possible resale prices.
Concerning the Creator: Marc Sutton is the director of distribution at SelecTrucks, a North American retailer of used semi-trucks. He leads Daimler Trucks North America’s (DTNA) used-truck sales and distribution network strategy, specializing in maximizing resale value within the secondary market. Since joining the corporate in 2011, he has held roles in product strategy, network development, prolonged service coverage, and the project management office.
Editor’s Note: This text was authored and edited following Vehicle Remarketing editorial standards and magnificence. Opinions expressed may not reflect those of Vehicle Remarketing.
