Semi Truck Purchase— Full-Service Lease vs New vs Used?

When the old truck gives up the ghost and it’s time for a new one, the question is if it’s better to buy a new truck, buy a used truck, or to full-service lease a truck.  There are benefits and disadvantages to all three depending on the situation.  Here at Jackson Group Peterbilt we offer all three.  In addition to selling new and used heavy-duty trucks, we operate a PacLease division to help those who would like to full-service lease.  PacLease is the preferred full-service leasing service for many commercial businesses because of the size of the operation.  There are more than 500 PacLease locations and over 600 dealer-service locations in the US, Canada and Mexico.  Some of the biggest companies in the world are PacLease customers.

• Pepsico
• Costco
• Walmart
• Boeing

How Does PacLease Work?

Full Service Leasing a truck through PacLease is rather simple. People who full-service lease trucks pay a monthly fee for the use of a truck.  This fee is usually a little less than what you would pay for a payment on a regular truck you purchased.  In addition there is a charge for miles driven.  The overall cost ends up being slightly more than what you would pay for the truck if you had purchased it. 

Reasons to Full-Service Lease a Commercial Truck

So if it costs more to full-service lease a truck than buy to a new one, why would you do so?  When evaluating costs you need to be careful to look at the operating costs in addition to the initial cost of purchasing the truck.  The operating costs of full service leasing a truck is typically far less expensive than purchasing a vehicle and maintaining it with an outside repair company.

·        Truck Maintenance- With PacLease full-service lease vehicles, all the maintenance is included.  The company leasing the truck is only responsible to bring it in.  PacLease has an extensive preventive maintenance program to minimize breakdowns and maximize uptime.

·        Roadside assistance- PacLease offers 24 hour, roadside assistance to all of their customers.

·        Downtime- If your full service lease truck has a mechanical issue that needs fixing, PacLease will provide you with a substitute truck to use until the repairs are done.  Costly downtime will literally become a problem of the past.

·        Customized Solutions- Telematics, Fuel Program, Administrative Services (licensing, fuel tax reporting, HVUT compliance) can all be included in a PacLease full service lease, which eliminates these additional burdens so you can focus on your core business.

Benefits of a PacLease Truck

•        Custom-Spec’d Vehicles

•        Full-Service Leasing

•        Finance Leasing

•        Contract Maintenance

•        Commercial Truck Rental

•        Local Decision Making

•        National Account Program

•        Preventive Maintenance

•        24-Hour Roadside Assistance

•        Customized Fuel Program

•        Vehicle Washing

•        Fuel Tax Reporting

•        Licensing & Permitting

•        Telematics (GPS vehicle tracking)

Reasons to Buy a New Truck 

Warranty, warranty, warranty!  Not only do you get a bright, shiny truck built exactly how you like it, but you also get a number of warranties to protect your new purchase.  A new truck comes with the reassurance that you are starting with a clean slate and a truck that hasn't been abused by previous owners.  You will always know the truck’s service history and the types of loads it has carried.

Reasons to Buy a Used Truck

The initial costs to purchase a used truck is far less than a new truck or a leased one.  Modern trucks are built to run between 500K to 1M miles.  Almost every part on the truck can be replaced or rebuilt.  This extends the availability for used trucks on the market.  If you can find a truck older than 2007, they are not required to have a diesel particulate filter or scr system and have less emissions requirements. This mean fewer trips to the shop for emissions-related check-engine lights and more money in the bank.  The downside to purchasing a used truck is that there isn’t a warranty and they are more prone to substantial engine, drivetrain and suspension problems.

Conclusion

All three options are good in their specific ways.  The most important thing is to carefully evaluate your situation and choose what is best for you and your company.  Whatever choice your make, remember to be safe and thoroughly perform your pre-trip inspections.  Service your vehicle on a regular basis to keep it running at peak performance.

What's an SCR Light and What Does It Mean?

What's an SCR System?

SCR stands for Selective Catalytic Reduction.  The systems is used to reduce the amount of NOx (mono-nitrogen oxides NO and NO2) that is released in diesel exhaust.  Trucks newer than 2010 are required to have a NOx limit of no more than 0.2g/bhp-hr for all heavy-duty diesel engines.

How Does the SCR System Work?

http://www.dieselforum.org/about-clean-diesel/what-is-scr-

As the exhaust leaves the oxidation catalyst there is an injector that sprays urea (DEF Fluid) in the chamber.  This combination causes a chemical reaction that converts the nitrogen oxides in to nitrogen, water and trace amounts of CO2.  Few people may know that breathing diesel exhaust is far less harmful than exhaust from a regular gas engine (which will kill you!)  

What is DEF Fluid?

DEF stands for Diesel Exhaust Fluid which is urea.  Most equipment with an SCR system will have a DEF tank behind the gas tank.  DEF fluid should be checked regularly even though it is consumed far slower than gas.

What To Do If the SCR Light Comes On? 

When the SCR light comes on, breathe calmly knowing that your truck isn't going to explode.  It just means your after treatment system has some issues that need to be resolved.  The bad news is that if the truck runs for too long with the light on, the computer system will de-rate your power and possible shut the engine off .  This is particularly aggravating because often it doesn't have anything to do with how the engine runs.  The SCR light is something that should be taken to a dealership to be fixed since there usually isn't a clear-cut answer to what is causing the light.  Often we see trucks come in with an SCR light multiple times and it is hardly ever the same problem twice.  A good mechanic is worth their weight in gold.

Find parts for SCR systems  

When To Change the Oil on a Heavy-Duty Truck

Engine Service on Heavy Duty Trucks

Regularly maintain your truck for optimal performance

The problem with servicing heavy-duty trucks is that there are many different trains of thought on when they should be serviced and which filters should be changed.  Because a commercial truck can drive more than 100,000 miles per year, it is important to keep the truck running smooth and on the road.  Every hour the truck is off the road, drivers and companies are losing money so it's important to keep trucks regularly maintained.

What is the general rule of thumb for interval between servicing heavy-duty trucks?

There are several different Manufacturers that make the engines for heavy-duty trucks.  The three main manufacturers are Cummins, Caterpillar and Paccar.  Each manufacturer has specs on their engines and the recommended time between services.  These can usually be looked up easily by engine type.  If you aren't able to get the specific information on your motor you can use 20,000-30,000 miles as a general rule of thumb.

When to service your heavy-duty truck--running hours vs miles driven vs operating time

For this example we are going to use the Paccar MX-13 engine.  In the operator's manual it suggest changing the oil every 25,000 miles, 800 hours or every 12 months.  It is very important for operators with trucks equipped with cranes or other operating equipment to keep a close eye on operating hours.  It is easy for drivers and service people to forget to service a vehicle with high running hours but low miles.  Here at Jackson Group Peterbilt in our Utah Valley Peterbilt location we maintain a fleet of service vehicles.  One of their vehicles hadn't been serviced for years because they were basing maintenance on miles driven and not engine hours.  When the mechanics finally serviced the truck, many of the filters had started to rust making them extremely difficult to get off and the oil was filthy.

Variations in when to service a commercial vehicle

Always remember your truck may need to be serviced more often than what your manufacturer recommends.  If you are hauling particularly large loads on a regular basis and putting heavy strain on the engine you need to get it serviced more often.  You may need to service your heavy-duty truck more often when you work in a vocational setting where the environment is very dusty or dirty.  Some people believe using special types of oil will extend the time between necessary services.  We suggest being cautious and following the guidelines given by the manufacturer.  You may also want to change the oil more often if the engine has a lot of miles on it.

Best practices for maintaining heavy-duty equipment

Remember to use good judgement when maintaining your truck.  Keep it maintained on a regular basis and more often when hauling very heavy loads or while working in dusty or dirty environments.  Always make sure to be familiar with your truck, the motor and the maintenance history.  Be sure to thoroughly perform the pre-trip inspection.  When dealing with maintenance, always lean towards the side of caution.  It is far less expensive to service the truck than replace the motor.