Adding Supplemental Vehicles To Your Fleet

When the busy season for ISP contractors hits, it hits hard! As an ISP contractor, one of the worst situations that can occur is having a delivery step van break down mid-route during the holiday craziness. This causes so many stresses and inconveniences - from late deliveries, coordinating a rental step van or truck, additional rental fees, repair fees, etc, that could be prevented. A solution that many MAG Trucks customers have found advantageous for ISP contractors success is the importance of adding supplemental vehicles to your fleet. Let's explore this in further detail.
The cost of rental or lease step vans and trucks can add up extremely quickly. Between outrageous weekly rental fees, insurance costs, and unexpected wear and tear on a rental truck, costs of renting or leasing are normally not the best solution for ISP contractors. In addition, lease or rental vehicles may not be ready or available when you need them. When you are placed in a situation of dire need and the cost is unexpected, things can become very costly very quickly. When ISP contractors operate with supplemental vehicles within their ISP fleets, there are many advantages to this business procedure.
Examples of Supplemental Vehicles

Adding Supplemental Vehicles To Your FleetAn example of a supplemental vehicle that MAG Trucks houses on their lot is a 2015 Freightliner 2500 13-ft Sprinter Van. This sprinter van undergoes all of the same mechanical inspections that each ISP approved step van does. In addition, MAG can install the ISP graphics to all supplemental vehicles so they fit right into the fleet of existing trucks.

Section 179: Save on those Supplemental Vehicles

ISP Contractors are able to take advantage of the new Section 179 tax deduction, which is a great time to apply to supplemental vehicles. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2019 should qualify for the Section 179 Deduction (assuming they spend less than $3,500,000).

For more information, visit Section179.org.

Budgeting for a Supplemental Vehicle

The unforeseen expenses of a step van needing repairs or leasing/renting a step van is something that cannot be budgeted for in an accurate way. However, the purchase of a supplemental step van or truck can be included in a budget, which ultimately reduces the amount of unknown expenses. When purchasing a new or used step van, the pricing is transparent. You know what you'll pay for that vehicle, so it's very cut and dried. The repairs needed on your route truck may not be clear cut, nor is the timeline of repair or loss of service time. You are essentially at the mercy of the repair company.

Growth Opportunities

The purchase of supplemental vehicles allows ISP contractors to be prepared and ready for growth opportunities. The ability to have an ISP certified step van in your fleet makes the business decision to expand or purchase new routes much easier. The expense for the supplemental vehicle is already budgeted for and purchased, so that is one less factor when deciding on expanding your business.

MAG Trucks has over 50 new and used route-ready step vans on their lot at all times. From P500 to P1200, gas or diesel, one of the top benefits of purchasing step vans from MAG is the convenience of ordering a step van and having it delivered or picked up within 7-10 days. MAG is one of the select ISP upfitters that will arrange for shipment of the step van to you across the country. This reduces down-time, especially when peak season hits and you cannot afford to have any of your vehicles out of commission.

Another benefit of MAG Trucks is being able to offer finance options. The application process at MAG is very easy, and quick. The finance options can be utilized for all supplemental vehicles as well. So get started here!


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