Skip the Used Dump Truck: Why Buying New is King
Mike Ferrari of All Out Junk Removal got a new, purpose-built truck from Specialty Truck Bodies instead of a used dump truck to start his business.A dump truck is essential to your junk removal business. And, a new, purpose-built junk removal dump truck will make your job a whole lot easier. We know the price of one of these new trucks can cause sticker shock. It’s enough to make many consider purchasing a used dump truck. However, we are here to tell you that when it comes to buying a truck for your junk removal business, a new dump truck is the right way to go. Let’s talk about why that is—and how you can get the money you need to make this investment.
Buy New for Less Downtime
One of the first and foremost reasons to avoid a used dump truck is all of the maintenance and repair costs. Obviously, being used, these vehicles are going to break down more often. And that means more money being spent to replace tires, fuel injectors, transmissions, and all sorts of other automobile parts.
However, there’s another hidden cost that comes along with repairs and maintenance: downtime. Every time your truck breaks down, you’re going to find yourself in a real quandary. You’ll have to rent a truck just to continue going to that day’s appointments, and chances are, that rental truck won’t even be a dump truck. You’re going to have to crunch for time and maybe even reschedule some appointments. You can say goodbye to those customers because they’ll likely settle for one of your competitors instead. The worst part is, the appointments you do manage to complete that day are going to have a real nasty ending. After your crew takes the truck to the dump, if that rental isn’t a dump truck, they’re going to have to unload the junk by hand. Now you’re going to have unhappy employees and less revenue coming in on top of your broken truck.
In comparison, new trucks don’t break down nearly as often, and when they do, they’re often covered by a warranty. Less maintenance and less downtime mean more money for your business.
Buy New for a Better Look
Customers like businesses that look professional. We’ll be real with you—a used dump truck doesn’t always look professional. At least, not as professional as it could be. A brand-new, purpose-built junk removal truck won’t just wow your customers, but it will also make your life easier because it’s custom-tailored to suit your needs as a junk hauling company. Features of these trucks include:
- Sturdy Construction and Easy Dumping
- Dual Barn Doors
- Ladders and Ramp
- Tool Storage
- Top-Mounted Tarp
- Flat Side Panels for Graphics
That last one is important because it helps your truck double as a rolling billboard. Simply put your logo, your business name, and your contact info on the sides of your truck. It’ll be sure to catch the eyes of potential customers all around your area.
Buy New for Tax Benefits
Here’s something people often fail to consider when choosing between buying used and new trucks: the tax write-offs. According to 2021 tax laws, you can write off up to $250K of equipment purchases per year. What this means to you as a junk removal business is that you’ll save a lot of money on taxes. Combine that with the free advertising your new truck will get for you, along with the reduced repairs and maintenance costs, and your new truck will essentially pay for itself in the long term.
A new truck is an investment you make in your business. It is the path to making your work easier, delighting your customers, and getting your name out there. It’s just a stroke of good fortune that the IRS thinks a new truck is a worthwhile investment as well. It’s not every day the IRS will throw you a bone, so we recommend you take it!
How to Get the Money for a New Truck
So, how do you scrape together the money for this new truck? Ultimately, you’re probably going to need to borrow it. However, this isn’t a bad thing as the truck itself is going to be your means of making the money to pay off your debt. In other words, this is by no means a bad investment! Lenders are going to want to see your income and your credit score before helping you out. Just know you’re going to want a credit score higher than 600 to make this happen. Anything lower than that, and you might have to settle for a used truck until you can raise your score.
Aim to make a down payment of $10,000 for your new truck. How you make this money is going to depend on your current lifestyle. Still working at your old job? Live frugally and perhaps even seek out additional work. Already doing junk removal? Keep your expenses low and start saving up. Once you can make the down payment, you’re in the clear—and from there, you can pay off your debt with the money you’re making with your new truck.
You’ll find that your new dump truck does wonders for your business. It makes load-up and disposal of junk a breeze. It serves as a mobile advertisement. And it helps you save money on both repairs and taxes. Eventually, if you make the right moves, you’ll find your revenue increasing, and you might even get the opportunity to purchase a second truck!
Ready to purchase a new junk removal truck? Visit our sister business Specialty Truck Bodies at JunkRemovalTrucksforSale.com.