Is anybody pre-buying trucks this year? During the last two new engine emissions deadlines imposed by the US Environmental Protection Agency a large percentage of Canadian fleets employed a pre-buy st...
Is anybody pre-buying trucks this year? During the last two new engine emissions deadlines imposed by the US Environmental Protection Agency a large percentage of Canadian fleets employed a pre-buy strategy to deal with the higher cost and perceived uncertainties about the new engines.
But the economic downturn, excess capacity and shortage of funding have significantly reduced any temptation among motor carriers to consider pre-buying trucks ahead of the 2010 emissions deadline.
Our cross-Canada survey of fleet executives last year found that only 17% planned to continue with their pre-buy plans for Class 8 trucks next year and we found no change when we asked the same question this summer.
That’s a significant drop off from the 33% of motor carriers who employed a pre-buy strategy prior to the 2007 engine emissions deadline and the 24% who pre-bought prior to the 2002 emissions deadline.
During the previous two pre-buy events it was for-hire fleets, and the larger ones in particular, who drove much of the pre-buy.
And those fleets are hurting right now with trucking valuations having dropped as much as 45% and their existing iron being worth considerably less than book value.
Ironically, this may be one of the best times to buy because many truck manufacturers and dealers, financially shocked themselves by the sharp drop in sales, are often looking to make a deal.
But it’s also hard to fault motor carriers for their current conservative attitude. •
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News