As your business speeds up to respond to post-COVID demand, you may be thinking of purchasing another vehicle to get materials to their destination. With the average price of a used vehicle up nearly 27% over last year — beating the record set in 1975 — you may want to pump the brakes on that purchase.
How have we arrived at this dangerous intersection of high demand and low supply? First, auto makers slowed production due to pandemic-induced shortages of critical car parts including microchips, resulting in new-vehicle inventory being slashed by more than 50% over the last year. Second, as rental car demand lurched to a grinding halt due to an unprecedented drop-off in business and leisure travel, companies sold off a third of their fleets to keep afloat. With this sector usually fueling a yearly demand of two million new vehicles, a drop in orders only added more sand in the gears of car manufacturers.
So before you think about entering the new or used vehicle marketplace, consider these top three reasons NOT to expand your fleet right now:
- Save Money
Even if you could find a fair deal on a new or used vehicle in the current market, purchasing would require you to invest capital that you may not be willing to part with. With competing demands on your cash flow, it’s important not to underestimate the ancillary costs of owning another vehicle.
On top of the initial investment, you will need to purchase insurance and have a space to garage the vehicle. Regular maintenance and down time for any repairs will also impact your bottom line. And, if your business fluctuates seasonally, you may end up with more or less of a fleet than you actually need. The cost of these lost opportunities could be considerable, making it even more of a challenge to grow your business. With an asset that depreciates the moment you drive it off the lot, there are certainly smarter investments to be made to stay ahead of the competition.
- Save Time
With construction costs surging and the labor market tightening, there’s never been more demand on your precious time than now. Pulling someone off the job site to make a delivery, perhaps even you, slows productivity and introduces the potential for critical errors and delays. With the pandemic predicted to be with us for many more months and even years, windows of opportunity to ply your trade will expand and contract for the foreseeable future. Find the competitive edge at every opportunity. Take advantage of decentralizing your deliveries with PartRunner. Savvy contractors and suppliers are leaving the logistics to the experts, with a user-friendly platform allowing same-day or scheduled deliveries customized to their needs.
- Focus on Your Customer
Put yourself in the position of saying yes to every customer request. Fulfill more orders and focus on customer satisfaction by modernizing your delivery functions through PartRunner. With guaranteed two-hour delivery windows, Partrunner can reduce your delivery costs up to 25%. At the click of a button, whether you need an SUV, cargo van, pick-up truck or box truck, leverage the PartRunner edge to meet your customers’ needs.