ARE THE REPAIRS WORTH IT?

Pash Brar

Ihave encountered multiple clients receiving huge repair bills for their trucks in the last few months. The invoices from mechanics are so high, that they cost more than what the truck is worth. Truck maintenance and repairs are inevitable and unavoidable. A truck must be kept in good working order and proper inspections must be done to keep it on the road. This ensures everyone is safe and money can be made. But when the repairs cost more than the market value of your truck, do you pay that amount, or get a newer truck instead? One client approached me to finance his previously paid off truck and explained he

needed the money to repair his truck and pay the mechanic. When I looked at the repair invoices, they were triple the value of the truck. An independent appraisal was done on the truck and it confirmed the truck was no where near the value of the repairs, and even after the repairs were completed the value would never reach the invoiced amount. The bank of course only offered the amount of the appraisal and the client was stuck. The only money available was the equity in his home, so the client took out a second mortgage to pay for the truck repairs. I also recently had a mechanic who fitted a brand new motor in to a used truck. A client agreed to buy the truck, but first wanted other cosmetic work done. He requested the mechanic get the body redone, paint it all, add chrome and lights and make it into a show truck. The mechanic did so and added all the extra work done to the sale invoice. The client thought he could finance the whole thing. Unfortunately, all the extra work done put the invoice to almost the price of a brand new truck. The bank of course refused to finance the full amount and would only pay for the market value of the truck. The bank even suggested they buy a new truck with full warranty instead. The client wanted only the used truck and had to give a huge down payment and huge payments for the first year to bring the value of the truck to its market value. The client was warned, if there is an accident or anything happens to the truck in that first year, the loss will be their own because insurance will never cover the full amount he paid for the truck. I spoke to an insurance adjuster who handles heavy equipment accident claims and he confirmed the same. More and more truckers are paying too much into trucks that need to be retired and put to salvage, which are leading to significant financial losses. Trucking is a business and it is up to the trucker whether they want to repair a truck, sell it as is, or salvage it to buy something else. The insurance adjuster confirmed one person he knows only keeps trucks that are under warranty. Once the warranty is running out, the truck is replaced with another truck under warranty. His accountant advised him to do this and I believe it is good advice. He has never experienced any significant losses, so it is sound business advice.

Is overpaying for a used truck worth it when its near the end of its life expectancy? When insurance companies look at a claim on these trucks, they pull comparable truck values and use formulas to determine the value of the truck. A rebuild does add some value yes, depending on where it was done, like a dealership, and if new parts were used, how many kilometers were on the new motor etc., but the added value will never be anywhere near the actual amount you paid for it. An example of an argument the insurance company hears is “I paid $40,000 for this rebuild and $40,000 for this truck, so give me $80,000 because that is the value.” No; that is not how it works. Unfortunately, its NOT the value. Just because you paid that, it doesn’t mean you will get that same amount from insurance. Insurance company’s will advise you to “prove your loss”. Showing 50+ pages of maintenance bills will not add value to your claim. Those bills just show you maintained your truck like you were supposed to. You can spend literally months arguing, and in the meantime you are not working. So now add your loss of income sitting at home to the equation and any lawyer fees you may have incurred. You will realize that maybe you should have taken that first offer and just gone back to work, because that is all you ended up getting anyways. It all boils down to educating yourself. An average engine lasts about 1.2 million kilometers. It’s not a surprise, but a guarantee that this truck needs a new motor soon. If you want to buy a truck with a million kilometers, you need to first realize the value of a truck in that condition. It should be discounted heavily. Do not overpay. Next, you need a contingency plan. You need to have enough money saved up to repair that truck plus a few months of income to cover downtime while you wait for the rebuild. That amount can range from $30-50,000 or more. You also need to realize that if something happens to the truck once the work is completed, you will NOT get the amount you just spent on that truck back from insurance. So, the decision is yours. Do you buy this truck in the first place, and do you fix it and possibly take a loss later? It could also take up to a year or more to payoff what you put in. Now you’re in a negative income situation. Is that worth it? You truck to make money and now money isn’t being made. Some get themselves in a situation where they experience a loss and may end up owing that loss amount to a finance company. This can lead to carrying the debt over to another truck. For example, they may have taken a $20,000 loss on a truck and owe that amount to a finance company. They don’t have the cash to pay the loss, so the finance company adds that existing debt to another truck because they want their money back with interest. Now you are once again in the same negative equity situation. You are owing more than what the value of the truck is. This is a vicious cycle and unfortunately a lot of truckers are stuck in exactly this situation. When you work for yourself and get into a tough financial predicament, there is only one person to blame. Going forward, overpaying trucks is not a situation that will disappear anytime soon. There are many who stand to gain from the demise of a misinformed trucker; the seller of the truck, the mechanic doing the repairs, and the finance company. I don’t think a trucker is stupid for getting stuck in these situations, but they may be naïve. As an owner operator you are running your own small business, so your job is to educate yourself on every aspect of your business. If you have not educated yourself, you can only blame yourself.

1.888.GLASVAN (452.7826)

Visit glasvangreatdane.com Four Southern Ontario locations to serve you; locations in Mississauga, Putnam, Alliston, and Whitby.

BETTER DECK TRAILERS.

Glasvan has a big selection of new and used flatbed, stepdeck and detachable trailers, in stock for immediate delivery. Equipment includes loaded specs that are ready to go to work on the highways of North America. For that freight you need to haul now, we’ve likely got a platform trailer that can do it.

New 2021 Great Dane Tridem 53’ Combo Flatbeds New 2021 Doonan Hot Dipped Galvanized 40 ton Mechanical Detachable New 2021 Doonan All Aluminum 53’ Tridem Deep Drop 17.5 tire Stepdecks with 35” deck height New Great Dane 53’ Combo Tandem Rear Axle Slide Stepdecks, 35” and 41” deck heights available

New 2021 Doonan All Aluminum 53’ Tandem Rear Axle Slide Flatbeds with Optional Verduyn Eagle kit Used 2015 Great Dane 53’ Tridem Stepdecks with Verduyn Sliding Tarp Kits

See more of our extensive new and used trailer and shunt truck inventory at glasvangreatdane.com

New Etnyre 60 ton Drop Side Detachable with pin on 4th axle, tandem axle jeep and spreader bar

Fast-Turning Inventory Of Used Trailers And Shunt Trucks

kI murMmqW dy Krcy jwiez hn?

pYS brwV

mYN ipCly mhIinAW ‘c keI ies qrHW dy lokW nUM imlI hW ijnHW dw ipCly mhIinAW ‘c tr`kW dI murMmq ‘qy bhuq Krcw hoieAw hY[ murMmq krn vwiLAW v`loN tr`k murMmq dy Byjy ib`l ieMny izAwdw hn ik keI vwr qW ieh ib`l tr`k dI mOjUdw Asl kImq nwLoN vI v`D huMdy hn[ ij`QoN q`k tr`k dI murMmq jW sWB sMBwl hY nw qW ies nUM twiLAw jw skdw hY Aqy nw hI ies qoN bicAw jw skdw hY[ tr`k nUM sVk ‘qy TIk Twk cldw r`Kx leI ies dI sWB sMBwl bhuq zrUrI hY[ ies qrHW hI AwpxI Aqy horW dI sur`iKAw vI bxI rihMdI hY Aqy ies qoN kmweI vI kIqI jWdI hY[ pr socx vwLI g`l ieh hY ik jdoN tr`k dI bzwrI kImq nwLoN ies dI murMmq dw Krcw vD jwvy qW kI ies dI murMmq krvwauxI TIk rhygI jW ies nUM vyc ky nvW tr`k lYxw TIk hovygw? myry ie`k gwhk v`loN myry koL ies g`l leI phuMc kIqI geI ik auh Awpxy pihly pyf AwP tr`k nUM TIk krwaux leI mkYink nUM dyx leI pYsy lYxw cwhuMdw sI[ pr mYN murMmq dy ib`lW nUM ieh vyK ky hYrwn rih geI ik auh aus tr`k dI mOjUdw kImq nwLoN iqMn guxW izAwdw sn[ jdoN tr`k dI inrp`K ivAkqI qoN kImq luAweI geI qW ies dI kImq qW murMmq dI rkm qoN ikqy G`t sI[ dUjI g`l ieh ik jy aus dI murMmq krvw leI jWdI qW aus tr`k dI kImq iPr vI murMmq ‘qy kIqy gey Krcy qoN ikqy G`t rihxI sI[ jdoN bYNk qoN krzw lYxw sI qW aus v`loN tr`k dI kImq Anuswr hI hoxw sI[ ies qrHW tr`k mwlk duibDw ‘c Ps igAw[ krzw lYx dw bwkI ie`k hI rwh bicAw sI auh sI Gr ‘qy krzw lYxw, ijhVw vI Gr dI mOjUdw kImq Anuswr hI imlxw sI[ hwl ‘c hI mYN ie`k aus mkYink nUM vI imLI hW ijs ny ie`k purwxy tr`k ‘c nvIN motr pweI sI[ aus kol ie`k gwhk sI jo auh tr`k lYxw cwhuMdw sI pr auh cwhuMdw sI ik pihlW ies tr`k dw bwkI hwr iSMgwr ho jwvy[ aus ny mkYink nUM bwfI TIk krn, krom qy lweItW lw ky vDIAw id`K vwlw tr`k bxwaux leI ikhw[ pr dUjy bMny ies sB ku`J hox kwrn vDy Krcy Anuswr bYNk ny krzw dyx qoN nWh kr id`qI[ bYNk vwLy kyvl tr`k dI mwrikt kImq dy Anuswr hI krzw dyx dI g`l kih rhy sn[ bYNk vwiLAW ny ieh vI slwh id`qI ik auh ies dI QW nvW tr`k lY lvy ijs dI pUrI grMtI hovy[ pr tr`k lYx vwlw kyvl purwxw tr`k hI lYxw cwhuMdw sI Aqy ies leI aus nUM BwrIAW Brkm ikSqW dyxIAW pYxIAW sn[ tr`k lYx vwLy nUM ies leI vI swvDwn kIqw igAw ik jy pihly swl tr`k dw koeI hwdsw ho jWdw hY, qW ies nukswn leI ieMSUrYNs vwly koeI pYsw nhIN dyxgy[ kwrn ieh ik auh tr`k dI pUrI Adw kIqI hoeI kImq kvr nhIN krngy[ mYN, hYvI iekuiepmYNt AYksIfYNt klymW nwl kMm krdy ie`k ieMSUrYNs AYfjstr nwl g`l kIqI[ aus v`loN vI ies g`l dI qsdIk kIqI geI[ bhuq swry tr`kW vwiLAW v`loN aunHW tr`kW ijnHW qoN kMm nhIN lYxw cwhIdw Aqy kbwV ‘c su`t dyxy cwhIdy hn, ‘qy loV qoN v`D Krc kIqy jw rhy hn[ ies dw is`tw ieh inkldw hY ik ies qrHW dy mwlkW nUM nukswn hI J`lxw pvygw[ tr`ikMg ie`k ibzns hY, ies leI ieh swrw ku`J mwlk dy h`Q v`s hY, ik auh purwxy tr`k ijs dI murMmq ‘qy loVoN v`D Krc ho irhw hY aus qoN mukqI pw ky nvW tr`k lYxw hY jW aus ‘qy kuv`ly Krcy krI jwxy hn[ ieMSUrYNs AYfjstr ny jwxkwrI idMdy hoey ikhw ik auh ie`k ies qrHW dy tr`k mwlk nUM jwxdw hY ijhVw kyvl tr`k nUM au`nw icr r`Kdw hY ijMnw icr aus dI vwrMtI hY[ jdoN hI vwrMtI Kqm huMdI hY, auh aus nUM vyc ky nvW tr`k lY lYNdw hY[ ies qrHW krn dI slwh, ijhVI myrI jwcy bhuq vDIAw hY, aus dy AkwaUNtYNt ny hI id`qI sI, ijs ‘qy auh Aml krdw Aw irhw hY[ iehI kwrn hY ik aus dw kdy vI h`doN v`D nukswn nhIN hoieAw[ ies leI ieh slwh lgdI vI TIk hY[ kI iksy aumr ivhw cu`ky tr`k ‘qy vDyry Krc krnw PwiedymMd ho skygw? jdoN ieMSUrYNs kMpnIAW ieho ijhy tr`kW dy klymW v`l vyKdIAW hn, qW auh ies qrHW dy hor tr`k dI kImq nwL mukwblw krdIAW hn Aqy ienHW dI kImq inrDwrq krn dy aus qrHW dy PwrmUly vrqdIAW hn[ hW, ieh TIk hY ik iksy rIiblf tr`k dI kImq QoVHI izAwdw l`g jWdI hY[ pr ieh zrUr vyiKAw jWdw hY ik ieh rIiblf ik`Qy hoieAw[ iksy fIlriSp ‘c jW ies ‘c nvyN purzy vrqy gey, jW nvIN pweI motr nwL ikMnw sPr kIqw hY[ ies qrHW dI hwlq ‘c kImq QoVHI v`D lg jWdI hY[ pr iPr vI kIqy gey Krcy brwbr ieh kdy vI nhIN huMdI[

ies dI ie`k imswl vjoN, “iksy ny ies dy rIiblf leI 40,000 fwlr lwey Aqy 40,000 fwlr hI aus dI KRId ‘qy [ ies leI auh 80,000 fwlr dI mMg krygw”[ pr nhIN, ies qrHW nhIN huMdw[ mwVI g`l ieh hY ik ies nUM tr`k dI kImq nhIN smiJAw jWdw[ kyvl ies krky nhIN quhwnUM ieMSUrYNs vwLy ieMny pYsy dy dyxgy ik qusIN ieMny Krcy hoey hn[ ieMSUrYNs kMpnIAW vwLy quhwnUM ieh hI kihxgy ik qusIN Awpxw ‘hoieAw nukswn swbq kro’[ ieh nhIN ik hoey Krcy dy ib`lW dy 50 sPy pyS krn ‘qy quhwfI imlx vwLI ieMSUrYNs dI rkm ‘c vwDw ho jwvygw[ auh ib`l qW ieh hI swbq krngy ik ijs qrHW cwhIdw qusIN aus qrHW hI tr`k TIk krvwieAw hY[ ieh swbq krn leI qusIN kwPI smW brbwd kr skdy ho[ dUjI g`l ieh ik ies smyN dOrwn qusIN kMm vI nhIN krdy huMdy[ ies dy nwL kMm nw krdy hox krky Gr bYTx kwrn hoey nukswn dI rkm joV lE[ ies qoN ibnw kys lVn vwLy vkIl nUM id`qI jwx vwLI rkm vI hY[ qusIN Swied ieh vI socdy hovogy ik ieMSUrYNs vwiLAW v`loN id`qI pihlI pySkS svIkwr kr lYNdy qW Swied TIk rihMdw[ Aqy Gr bYTy rihx dI QW hux kMm krdy hoxw sI[ ieh sB soc ivcwr krn qoN bwAd hI bMdw ieh socdw hY[ ie`k Awm ieMjx AOsqn 1.2 imlIAn iklomItr q`k c`ldw hY[ jy qusIN koeI tr`k KRIddy ho ijhVw ie`k imlIAn iklomItr c`l cu`kw hY , ies ‘c koeI hYrwnI vwlI g`l nhIN ik ies tr`k ‘c quhwnUM nvW ieMjx CyqIN hI pwauxw pY skdw hY[ ies ‘coN v`fI mwqrw ‘c ktOqIAW kIqIAW jWdIAW hn[ v`D pYsy nw qwro[ AglI g`l quhwfy kol koeI Biv`KI Xojnw hoxI cwhIdI hY[ aus tr`k dI sMBwvI murMmq krwaux leI quhwfy kol loVINdI rkm vI hoxI cwhIdI hY[ dUjw jdoN q`k auh rIiblf hMdw hY au`ny smyN leI ku`J Krcw pwxI vI hoxw cwhIdw hY[ ieh rkm AMdwzn 30 qoN 50,000 fwlr q`k ho skdI hY[ quhwnUM ieh vI iDAwn ‘c r`Kxw pvygw ik jy ieMnw Krcw hox qoN bwAd koeI Gtnw vwpr jWdI hY qW ieMSUrYNs vwiLAW v`loN quhwnUM KrcI hoeI rkm dy pUry pYsy nhIN

imlxgy[ ies leI ieh sB ivcwr krky PYslw qW qusIN hI krnw hY[ jo qusIN KricAw hY aus nUM pUrw hox leI ie`k swl qoN vI v`D dw smW l`g skdw hYy[ pr qusIN Awmdn p`KoN Gwty ‘c hI ho[ kI ieh hwlwq TIk hn? tr`k qW qusIN clwauNdy ho pYsw kmwaux leI pr pYsw koeI kmwieAw nhIN jw irhw[ ku`J ies qrHW dI siQqI ‘c Aw jWdy hn, ik nukswn hox kwrn iksy PeInYNs kMpnI kol jWdy hn[ ies qrHW auh hor tr`k lYx leI krzw lYNdy hn[ imswl vjoN iksy tr`k ‘c aunHW dw 20,000 fwlr dw nukswn hoieAw Aqy auh ies dI pUrqI leI iksy PweInYNs kMpnI qoN krzw lYNdy hn[ aunHW kol nukswn dI BrpweI leI nkd pYsy nhIN huMdy ies leI auh PweInYNs kMpnI ies krzy nUM vI pihly krzy ‘c joV lYNdI hY[ auh ieh swrw pYsw ivAwj smyq vsUlxw cwhuMdI hY[ iPr ies qrHW pihlW hI krzy dw boJ J`l irhw ivAkqI hor krzy dI mwr hyT d`ibAw jWdw hY[ ies qrHW jo vI tr`k dI kImq hY aus qoN vI v`D quhwnUM krzw moVnw pYxw hY[ ieh ies qrHW dw BYVw c`kr hY ik ies ‘c bhuq swry tr`kW vwLy Ps jWdy hn Aqy inklx dw koeI rwh nhIN idsdw huMdw[ jdoN qusIN Awpxy leI hI kMm krdy ho Aqy ies qrHW dy c`kr ’c Ps jwvo qW qusIN hor iksy dI QW Awpxy Awp nUM hI ksUrvwr smJogy[ g`l A`gy qorIey qW tr`kW ‘qy vwDU Krcy ies qrHW dI musIbq nhIN ijhVI CyqIN ip`Cw C`fx vwLI hovy[ ies qrHW dy bhuq lok hn jo ies qrHW dI musIbq vyly, Psy tr`kr dI QW Awpxy hI Pwiedy bwry socdy hn; ienHW ‘c tr`k vycx vwly qoN lY ky murMmq krn vwLy, PweInYNs kMpnI vwLy sB Swml hn[ mYN smJdI hW ik tr`kW vwLy mUrK nhIN jo ies qrHW dy hwlwq ‘c Psdy hn pr auh BoLyy zrUr ho skdy hn[ ie`k Enr Awprytr hox krky qusIN ie`k Cotw kwrobwr hY jo Awp clw rhy ho[ jy quhwnUM ies sbMDI jwxkwrI nhIN, qW qusIN hor nUM nhIN sgoN Awpxy Awp nUM hI ksUrvwr TihrwA skdy ho[