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Buying a Used Commercial Vehicle? Remember These 7 Tips

IndianMoney.com Research Team | Posted On Saturday, March 30,2019, 03:46 PM

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Buying a Used Commercial Vehicle? Remember These 7 Tips

 

 

Buying Used Commercial Vehicles? Remember These 7 Tips 

What are commercial vehicles?

Commercial vehicles are a class of motor vehicles used specifically for transporting goods or ferrying passengers for private needs and business profits.

Buying a new vehicle is always a good idea, but not everyone can afford to purchase a new one. This is when used vehicles come into the picture. Used vehicles are sold at a much lower price than the brand new ones. Purchasing used vehicles have its own set of advantages like engine being well toned.

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7 Tips For purchasing a used commercial vehicles

1) Explore various options

Leading online commercial vehicle marketplaces like indiamart, indotrux and motorbazee offer a wide variety of trucks and vans to choose from. Although you cannot get an idea on the vehicle’s condition online, you can contact the seller and set up a meeting in which you can inspect and arrive at a conclusion on the vehicle’s condition.

If you opt to buy commercial vehicles from a dealer, then you would have very limited options. It is wise to explore options before arriving at a purchase decision. Compare the prices offered by multiple dealers for the vehicle you want, also check the features of the vehicle, and ask for an add-on feature as a complementary benefit.

Many commercial vehicles are sold via auction and you may consider this as a viable option. You must remember that high intensity bidding can sometimes drive prices upwards and you end up paying more, unnecessarily.

See Also: Functions Of Commercial Banks

2) Research Thoroughly 

The most important step in buying a used commercial vehicle is to get as much information as you can to determine if the vehicle is a right purchase. The three main parameters of inquiry are:

(1) Inspect the truck or van or any vehicle, right from the structural and mechanical pieces till the tyre treads and the vehicle’s mileage.

(2) Know the vehicle history, ask for information of use, maintenance, oil change, and service records, (and always go through public records using the vehicle’s VIN to find traffic records and the accident history)

(3) Know about the owner or the dealer by background checks and reputation through word of mouth.

3) Consider technological features

If the vehicle is more advanced such that you or your drivers are not capable of driving it around, then the operational learning curves could slow down the productivity.

On the other hand, advanced features will help in working smarter and faster, therefore you will have to strike a balance between innovation and familiarity. Make sure that commercial vehicles that you are purchasing, meet the state and federal requirements, which include safety measures and emissions standards.

4) Ensure the vehicle looks good 

It’s easy to ignore the look of a used commercial vehicle, as long as it functions fine. But, the question is if the dealer or seller has not taken good care of the outer body of the vehicle, then how do you expect them to take better care of the main parts like the engine? You must be extra cautious when evaluating vehicles that look in bad shape. Do note that commercial vehicles should look good. If the look of the vehicle is not that great, but the main parts are good, then you must consider refurbishing to make it more attractive and professional.

5) Evaluate the overall cost

The Total Cost of Ownership, TCO, is found by adding the purchase cost with ownership costs (tyres, fluid and lube changes, maintenance / repairs / part replacements, insurance) and subtracting the resale value. Researching a vehicle’s condition and history as mentioned above, would help in forecasting when and where problems would arise and the average cost of maintenance, services and repairs. You must remember that a vehicle would require a major engine overhaul once it runs 7,00,000 miles.

Estimating and establishing an acceptable TCO that suits your financial situation, would give specific criteria for evaluating used commercial vehicles like trucks and vans.

See Also: How to choose Best Car Loan?

6) Ensure documentation is done

Ask the dealer or seller for proof of ownership of the vehicle. This is just to be sure that you are buying from the registered owner. The worst case scenario would be to purchase a stolen truck and the original bill or invoice would instantly provide the assurance that you need.

When buying second hand or used vehicles, you must always obtain a title transfer and a bill for sale of the vehicle. If a truck or van shows up with problems or doesn’t get delivered on time, then you have enough proof to push for refunds or take legal action.

7) Ask for a warranty 

If you have doubts and questions over the condition of the used vehicle at the time of purchase, then you must strongly consider asking for a warranty or guarantee of the vehicle from the seller. Most commercial vehicle dealers offer some kind of warranty. The individuals who often sell trucks at lower prices than a franchised dealer are likely to not offer any warranty or guarantee. Hence, getting a warranty or guarantee is a factor to be considered while buying a second hand vehicle.

Advantages of Purchasing a Used Commercial Vehicle

  • Cost Saving: There is absolutely no doubt that opting to buy a used commercial vehicle from a used car dealership, saves thousands of Rupees. By being the second or third owner of the vehicle, you will avoid the high initial depreciation which the first owner bears.
  • Wide Range Of Vehicles For Selection: Used vehicle dealers have all sorts of vehicles, ranging from the most basic economy ones to luxury vehicles. So by opting to buy from a used vehicle dealer, you have a wide range of options.
  • Guarantees And Warranties: Most used vehicle dealers offer warranties and guarantees on vehicles; this applies to those that are older as well. Although this warranty would cover only the major power components, it still offers peace of mind to an extent as you are making a fairly large purchase.
  • Ability To Negotiate: There are a lot of second hand dealers which offer the luxury of negotiating and getting a good deal on the purchase. Do your research on the pricing of commercial vehicles and negotiate as much as you can. You must consider checking out multiple dealers before arriving at a conclusion. 

Disadvantages of Purchasing a Used Commercial Vehicle

  • Unknown Vehicle History: When purchasing a commercial vehicle from a used dealership, you would not know the auto history of the vehicle you are planning to buy. Although most dealerships produce a report of the history of most vehicles, it may not be available for the vehicle that you want to buy. If you want to ensure the condition of the vehicle, then you can get a trusted mechanic to check on the vehicle’s condition.
  • High Pressure Sales: Used car dealerships are known to be notorious with their high-pressure tactics when it comes to sales. You may be directed to multiple salespersons whose job is to pressurize you into making a decision right away. Refrain from making a purchase of the vehicle on your very first visit to the dealership, unless you have had adequate time in researching the price before visiting the dealership.

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