Opinion: Selecting the Right Trailers, New or Used

By Jeff Weber

Vice President, Sales and Marketing

Ervin Equipment Inc.

This Opinion piece appears in the Dec. 10 print edition of Transport Topics. Click here to subscribe today.

Before adding one, two — or several hundred — trailers, a fleet manager needs to determine what equipment’s right for the application and to do it by knowing what’s out there, what’s right for an operation, and the most basic choice of all, whether to buy new or used.

There are strong benefits to purchasing both new and used trailers. Overall, new trailers offer the longest life, as well as the luxury of having the exact specifications to fit an operator’s needs. Made-to-order trailers also carry the highest outright cost and require a significant amount of time to manufacture.

Used fleets, by contrast, often have near-immediate availability. Realistically speaking, fleet owners are not always able to afford a brand-new fleet of trailers. Since used trailers are less expensive, carriers can purchase more trailers with less capital. In these cases, they often wait for another company to trade in its fleet after the typical five to seven years of use.

While trailers lack the headache that can come with a motor, they are not immune to aging. Working parts become worn after years of use, which drives up the cost of ownership. For this reason, fleet managers regularly use the age of a trailer to evaluate remaining life when preparing to buy. A trailer’s age also can dictate how a carrier can use it.

New trailers only are necessary for a few industries or operators. For example, operators who need a specialized trailer often are forced to purchase new, and fleet owners who put great value into the appearance of their trailers likely prefer new as well. It’s also an investment companies are much more likely to make when their business — or the economy — is thriving.

Used trailers, depending on how they have been maintained, should last up to 10 years, maybe even 15. However, many fleet managers only want to keep a trailer until it reaches the 10-year mark. After that, the cost of ownership is bound to rise. Most managers don’t want the burden of costly repairs, especially on a trailer that’s a decade old.

However, a trailer that is at that point still can serve several purposes. Often, aged trailers get demoted from over-the-road transport to use for cartage and warehousing purposes. These trailers still need to be approved by the Department of Transportation, but a new trailer is not necessary for companies looking to cart products shorter distances from the factory to a warehousing facility. During this phase of the trailer’s life, it generally travels fewer than 100 miles at a time or stays within a company’s site.

Van trailers, like any other piece of equipment, are not invincible. Though they’re built to last, there comes a point when a unit is no longer operable or the cost of ownership is simply too outrageous to keep it on the road, even for the shorter distances. Although fleet managers have their own thresholds for the amount of money they’re willing to put into a trailer, at some point — usually around 15 years on a well-maintained trailer — it makes more sense to retire a trailer and invest in something newer.

Unlike most other trailers, vans still serve a purpose once they reach retirement. These trailers can be repurposed and used for storage as long as the contents can be kept dry. A van generally reaches this stage when it meets a fleet manager’s predetermined cost threshold. For example, if a trailer being used for cartage purposes is in need of a $50 repair, the fleet manager may decide the trailer is worth the repair. However, if the trailer is in need of a $700 repair, the manager may decide it’s time to retire the trailer and invest that money in something newer.

When a trailer starts pushing beyond a manager’s limits for continued use, tire life can come into play, as well. DOT regulations specify the minimum requirement for tread depth on a trailer is 2/32 of an inch. However, most longhaul trailers should have a tread depth more in the range of 6/32 of an inch if snow is a concern — or 4/32 in the rain.

Before putting any money into new tires, the manager is going to look closely at how much longer that trailer should conceivably be kept in the fleet. If its time is short, the fleet manager most likely will trade it in, or, if it’s older, put it into cartage or storage applications.

For knowledge on cost of ownership, residual value and all the other ins and outs of purchasing a trailer, it’s often best to seek the advice of an industry professional. Not only can these dealers help in the selection of the right trailer for a certain application, they also can provide a better, more convenient, buy. Suppliers that deal in larger quantities have the buying power to pass a discount down to their customers. In addition, these folks tend to have a plethora of information regarding industry matters that other small dealers might find trivial. From the preferred age to the cost and desired industry specifications, sales associates know what to ask to make sure they get the right specs for each buyer, down to the smallest detail.

For more than 30 years, Ervin Equipment Inc., Toledo, Ill., has been a supplier of new and used semitrailers, including dry vans, reefers, lowboys, chassis, flatbeds and tankers.