3 Reasons Why Supplemental Vehicles Make Sense

3 Reasons Why Supplemental Vehicles Make Sense

Many ISP contractors have found that adding supplemental vehicles to their current fleet has many advantages including: reducing the overall operating expenses (purchase vs. lease payments), increasing efficiency, and allowing for business growth opportunities. This article provides 3 Reasons Why Supplemental Vehicles Make Sense in this business climate and industry.

Reason #1: Reduce Down Time and Late Deliveries 

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 their business success is the importance of supplemental vehicles for ISP fleets. Let's explore this issue in further detail.

Reason #2: out of pocket vs. warranty

Just like any other business, expenses are always considered. When reviewing a fleet of step vans or supplemental vehicles, ISP contractors should not only consider the monthly payments, but also the longevity of each vehicle. If a vehicle is nearing their life span, the idea of leasing or purchasing is often evaluated. Leasing can seem appealing due to the non-committal agreement, but can be very detrimental when looking at the bottom line and efficiency of the business.The cost of rental or lease step vans and trucks can add up extremely quickly. 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.

ISP trucks need to be on the road, performing their tasks efficiently and effectively. The one factor that can completely skew that task is a faulty ISP truck. One of the main advantages of purchasing vs. leasing is that each monthly payment is 'invested' into the vehicle. Secondly, most step vans carry a warranty which can make a huge difference in any minor (or major) repair. Let's explore the importance of ISP Truck Warranties. 3 Reasons Why Supplemental Vehicles Make Sense

Why does a warranty matter?

The key to success for Independent service providers is for all of their route trucks to be in service at all times. If something unforeseen arises, it's important that your truck dealer is responsive and has a plan in place to offer a solution to minimize your downtime. MAG Trucks has provided new step vans to Independent contractors for over ten years, and is confident in our process of reducing your downtime, and getting contractors back to what they do best - operating, managing, and supporting their routes and drivers. Below is a comprehensive list of warranty contacts for new step vans.

What's in an ISP Warranty?

One of the most important questions to consider when purchasing a step van is the warranty. If the step van is being sold by an individual or private seller, it probably doesn't have a warranty. However, if the step van is being sold by a dealer, like MAG Trucks, it can carry a warranty. Be sure to ask the details on that warranty! Let's explore MAG's warranty as a reference.

MAG Trucks prides itself on its workmanship but knows things can happen unexpectedly. Every MAG used or reconditioned truck leaves the Kansas City facility equipped with a six-month or 6,000-mile nationwide limited engine and drivetrain warranty.

The MAG Trucks warranty encompasses 8 major components, including the engine, transmission, drive axle, water pump, turbo/supercharge, seals and gaskets, fuel tank, and radiator. Let’s take a closer look at What’s in an ISP Contractor Truck Warranty specific to MAG Trucks…

Read more about the MAG Trucks warranty now. 

When ISP contractors operate with supplemental vehicles within their ISP fleets, there are many advantages to this business procedure. ISP Contractors are able to take advantage of the Section 179 tax deduction. Section 179 is a substantial deduction that allows businesses to deduct the full cost of qualifying equipment. This huge tax savings can make a difference to your bottom line at the end of the year! For more information, visit Section179.org.

Reason #3: FINANCING SOLUTIONS

Some of MAG's customers have shelled out over $800 A WEEK for lease/rental payments to other dealers for a quick solution to reduce the downtime during peak season. Once MAG partnered with the contractors on devising a success, affordable, and sustainable payment to OWN, the Independent Contractor immediately saw the benefits, most notably financially. MAG is one of the few dealers that offers finance options with quick and easy solutions. The below are situations to demonstrate the payments on both a New Truck and Used Truck Purchase; with as little as $0 down (approved credit) to a 20% down payment. Let's explore the advantages to owning vs. leasing, and get you started on reaping the benefits of your business.

ISP Contractor Monthly Payment Calculator

New Truck  - 20% Down-payment
Sales price     $55,000
20% Down    -$11,000
Loan =           $44,000
[Term – 60 months; Rate – 5.99%]
Payment for a brand new ISP truck: $850.44 / month

New Truck  - 0% Down-payment
Sales price     $55,000
0% Down                $0
Loan =            $55,000
[Term – 60 months; Rate – 5.99%]
Payment for a brand new ISP truck: $1,063.05/ month


Used Truck - 20% Down-payment
Sales price    $38,000
20% Down -    $7,600
Loan -            $30,400
[Term – 60 months; Rate – 5.99%]
Payment for a used ISP truck (20% down): $587.58 / month

Used Truck - 0% Down-payment
Sales price    $38,000
0% Down        $       0
Loan -            $38,000
[Term – 60 months; Rate – 5.99%]
Payment for a used ISP truck (0% down): $734.47 / month

Another benefit of MAG Trucks is being able to jump on 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 40 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 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.


2 Comments

    • i am looking for a food truck size 14-16 foot

      Reply


    • Hey! We would love to help you out! We have tons of trucks great for you. One of our sales reps has been trying to reach out at 816.867.4560 please get in touch with him to get the truck you need!

      Reply


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