Matt Pain buys only used trucks for the longhaul side of the family business. The reason is simple: they cost far less than new units and, if managed correctly, some can perform almost like new vehicles. “For the price of one new truck, I can buy two or three used units.” says the vp-operations for Pain Enterprises.

The Bloomington, IN-based company, which makes and distributes dry and liquid carbon dioxide products, maintains a fleet of 30 tractors and 155 straight trucks. Straight trucks are purchased new, but tractors are purchased used.

The key to this decision, says Pain, is that today's Class 8 tractors are designed to run for a million miles. Since the fleet typically buys used trucks with between 200,000 and 300,000 miles on them, they have many more years of good service before major maintenance is needed. “Most diesels don't need overhaul until 700,000 miles, so we might get another 300,000 to 500,000 miles out them before that expense comes due,” he explains.

Those advantages can vanish, however, if used trucks aren't maintained properly, Pain says. Mike Moss, Fort Wayne Truck Center, agrees. “You can run a used truck to one-million miles if you buy one with good specs and if it's well-maintained. You can get near-new truck performance if you take care of it.”

How well fleets manage and maintain used equipment is more critical than ever, now that supplies of late-model/low-mileage Class 8 vehicles have diminished. Several factors have led to this dramatic alteration of the used truck landscape during the past year. Many fleets decided to hold onto their equipment for several more years rather than take a loss on the reduced trade-in value. And the bargain basement prices encouraged others to buy used rather than new.

Demand also increased because some fleets wanted to avoid buying new trucks spec'd with engines modified to meet the stricter emissions regulations that went into effect last October.

Mike McColgen, truck remarketing development manager for Volvo Trucks North America, says demand for late-model/low-mileage used Class 8 tractors was so high that prices actually went up rather than down.With late-model/low- mileage units rapidly disappearing from the market, fleets have to find ways to make units with higher mileage work cost-effectively. One solution is to make sure there's a support package behind the vehicle.

For example, Pain Enterprises chose Kenworth Truck Co.'s PremierCare Managed Maintenance program last year to support its fleet — primarily Kenworth T600 and T800 tractors — in the field. One benefit of the program is that prices for preventive maintenance, as well as work that needs to be done on the road, are determined up-front. This is critical issue for used trucks, which require more service as they age.

“We are spread over 14 midwestern states and have to rely on outside garages for maintenance,” Pain explains. “Each of our trucks is driven between 85,000 and 120,000 miles a year; maintenance costs were jumping through the ceiling.”

Pain uses a specialized software system to track costs for each truck in the system. “For preventive maintenance, I pay a set fee each month that is entered online. Any repair work beyond that is billed to me directly and I enter it online to keep track of costs,” he explains.

Warranties, however, may be the real key to insuring the value of used trucks. “For owner-operators and small fleets, it's always wise to buy a warranty package,” says Steve Nadolson, chairman of the Used Truck Assn. “Some fleets may have their own shop network or a deal with a truck OEM's network to cover repairs. But a warranty package helps you get the most value out of a piece of used equipment.”

Nadolson explains that the purpose of a warranty is to protect the fleet in case of a catastrophic failure. For example, an engine piston repair can cost up to $6,000 and a total diesel engine replacement as much as $14,000, he points out.

Volvo's McColgen agrees. “As you move up in terms of fleets size, warranties become less of an issue. There's more focus on the price of the truck,” he says. “The guys operating one to five trucks, however, have less stomach for risk. For them, it's a combination of issues: the vehicle's performance characteristics in relation to the warranty package they can obtain.”

Volvo sells used trucks through its Generation 2 program, which has a variety of warranty options. McColgen says the crucial time period for the small-fleet used truck buyer is the first six months. They must be able operate a used truck for six months without a catastrophic failure so the vehicle can earn money for them.

Volvo's Generation 2 used trucks come with a standard 6-mo./60,000-mi. basic warranty on the engine, with optional 12-mo./100,000-mi. and 24-mo./200,000-mi. warranty packages. The warranties apply to engines because transmissions and rear axles on Class 8 trucks have original 750,000 miles warranties.

Used truck dealers are also offering new options for used truck buyers to encourage demand. Freightliner's SelecTrucks subsidiary, for example, has a fair market lease program called Selectlease that's designed to lower the monthly equipment cost of used vehicles to the end user. “This is part of a broad sweep of offerings — from warranties to finance options,” says Bill Gordon, president of Freightliner LLC Market Development Corp.

Gordon says used truck buyers want warranty packages and broad dealer networks for maintenance support on a par with what new truck buyers get. “Support is the big advantage — it helps fleets manage their vehicles better.” he says.

That support may become even more critical as low-mileage/late-model equipment becomes scarce and fleets are forced to contemplate buying trucks that have logged more time on the road.

How do you get the most money from the trucks you want to sell? FLEET OWNER got some tips from the experts — leasing companies and dealers that sell used trucks for a living.

Leasing giant Ryder System, which sells thousands of used trucks every year, says having a complete maintenance history for each truck is vital to keep it moving. “One-owner vehicles, with a complete history of maintenance care … means there is no guessing about their condition,” they point out.

John Bender, corporate used truck manager for Kenworth of Tennessee, says specs greatly affect a vehicle's residual value. “Horsepower and gears sell. There is heavy demand for engines that can be upgraded to 500 hp. or higher. The average premium for 500- to 550 hp. is $3,200 to $3,400. You also want 13- or 18-speed transmissions. That option adds $2,700 to the value of a 2001 Class 8.”

Over the last few years, many fleets decided to hold onto their older trucks because of falling residual values. This year, however, may be the time to sell late-model/low-mileage equipment: demand is high.

Andrew Krivenko, used truck manager for Wheeling Truck Center, says the little things really matter when selling used trucks. The Volvo dealership first runs e equipment through its maintenance shop, changing all the fluids and filters, replacing sleeper beds, burnt-out lights, checking the vehicle mechanically from top to bottom, to make sure it is so clean the buyer can't tell it from a new truck.

“If there isn't a good warranty left, we'll work with National Truck Protection and put an extra warranty on it based on dynamometer testing.” The dealership also guarantees that the truck will pass all DOT weight scales and checks on the initial trip home. That level of detail makes it easier to sell trucks with 500,000 miles on them.