
[ad_1]
The myriad powertrain options available today further complicate the already complex truck specification process. The wrong decision, especially the wrong powertrain selection, can affect profitability, so fleets must choose their financing sources carefully.
Choosing the right financing source can be an invaluable asset when it comes to helping fleet managers wade through all the options to ensure that each asset is optimally specified for its duty cycle, with As a result the total cost of ownership will be the lowest.
Don’t just consider the lowest rates when choosing a financing source. Lowest rate does not always equal lowest cost.
Five Questions to Ask a Potential Truck Financing Source
1. Does the financing source understand the trucking industry?
Trucking is an important part of the country’s economy. Does the potential funding source understand the role of trucking in the broader economy? Does it understand the impact of downtime? Is it well-versed in trucking regulations, and does it know available technologies, including powertrain options and advanced driver assistance systems?
2. What funding source understands your company?
Since no two trucking companies are alike, the right financing source will understand the ins and outs of your particular operation. The funding source requires more than a working knowledge of the duty cycles in which you operate, the areas in which you excel, and your challenges. Without a thorough understanding of your operation, the financing source cannot help you properly specify vehicles and design a financing package that provides you with the lowest cost.
3. How long has the financing source interacted with the trucking industry?
Trucking is cyclical when it comes to both new trucks and used trucks. You want to be sure that the financing source you choose demonstrates a commitment to trucking and won’t pull out of the market at the first sign of trouble.
4. Does the finance source offer flexible financing options?
You want a financing source that will allow you to adjust the asset life cycle up or down based on changing market conditions. In a time of limited supply, will you be able to extend the life of the asset to continue operating? As new technology comes to market that can benefit your operations, will you be able to shorten the life cycle of an asset?
5. Is the finance source capable of life cycle analysis?
Replacement has an optimal location in the asset life cycle, and the best location varies depending on the duty cycle and application. Is the funding source able to use data analytics to determine what the preferred location is so that your assets are replaced before they become ineffective and cost you money?
You should carefully evaluate potential financing sources before selecting one that will be your strategic partner and help you successfully navigate the complexities of today’s trucking industry.
Patrick Gaskins, SVP of Corecentric Fleet Solutions, oversees both sales and operations of the company’s fleet offerings. Gaskins joined the company in 2010 with more than 30 years of experience as a financial services professional in the transportation industry. He leads a team that works with a supply base of over 160 manufacturers to help the country’s largest fleet manage all aspects of their fleet operations and fleet related expenses.
Source: www.bing.com
[ad_2]