Buying a used truck makes good sense for many owner-operators and small fleet managers. The purchase of a new truck can tie up a considerable amount of working capital, despite the fact that it depreciates considerably the minute you drive it off the lot. For many, used trucks are simply a more affordable option. Yet, there’s a greater risk that a pre-owned vehicle will require repairs or experience a breakdown sooner than later, despite regular maintenance.
To plan for these inevitable repairs, you generally have two choices. You can set money aside each month in an account earmarked for repairs or purchase a comprehensive aftermarket warranty to manage your overall risk.
There are several problems inherent in the first strategy. First, there’s no way to anticipate which systems or components might fail, and when. Therefore, it’s impossible to determine with any accuracy how much you need to set aside now for future repairs. Second, if a given repair exceeds your reserves, you either have to borrow the money to pay the difference or are sidelined until you can come up with the balance due.
Both options can be devastating for your business. The third reason that relying on self-funding can be difficult is that it requires significant discipline to refrain from tapping into reserves earmarked for repairs when cash flow gets tight or competing costs arise.
Aftermarket warranties help resolve these challenges and more since they’re designed to cover the kind of game-changing repairs that can bankrupt a commercial truck owner. Whether you are buying a used truck/equipment, an aftermarket warranty is there to provide peace of mind. With a warranty, you know exactly what’s covered and what’s not, making it easy to determine and maintain a budget for preventative maintenance and any deductibles that may apply to covered repairs. In addition, you can pay the full price of the warranty in advance or choose to make fixed, affordable monthly payments. So, when a breakdown does occur, you’re not left scrambling for cash or disrupting business cash flow to cover needed repairs.
Whether you purchase or own new or used equipment, a comprehensive aftermarket warranty can make good business sense by reducing your out of pocket-costs for expensive repairs, extending the lifecycle of your equipment, and enabling you to invest business capital where you need it most as you grow your business.
To learn more about TrüNorth warranty programs and services, or for help determining the right warranty program for your business needs, visit us at TrüNorth Warranty or call us at 800-903-7489.
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TrüNorth Global provides limited liability warranties for commercial medium and heavy-duty trucks, including work trucks, construction and agricultural equipment.