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 Ask
the Expert question: As
a fleet manager, what are some of the factors I should consider
when deciding how long to keep my trailers and will it save my
company money to hold onto them longer?
John Muzii,
Senior Product Sales Manager, answers: For our remarketing
business there are three main things that we continually look
at when we are evaluating the life of trailers - usage, maintenance
history, and financial considerations. In fact, we often advise
our customers when it's time to trade-up with newer trailers,
or when acquiring quality used trailers may be a good option.
For our own
GE fleet we also need to constantly evaluate our own asset portfolio
of 135,000 trailers. As it turns out, many of the things we need
to look at are also the same things our customers need to look
at so we are pretty good at giving advice.
 For
example, trailer usage is very important. Knowing your trailer
mix (length - 48' vs. 53', construction - plate vs. sheet and
post) and how they are utilized is obviously a critical factor
in deciding how long to hold onto trailers. Maybe you are now
doing more short haul vs. long haul, or you have had a major contract
change. If you are finding that your customers are now demanding
a certain type of trailer asset based on their operational needs,
then its time to re-align your mix.
Maintenance
history of your trailers can uncover huge cost drains for your
business. It may be time to weigh your options between repairing
or selling these assets. When you have a good handle on the costs
associated with each trailer - and the fleet overall - you will
have an "early warning system" in place that tells you when you
may be spending too much.
Finally, there
are also financial considerations to consider at every turn. Would
you be better off selling the trailer to tap into its equity -
and then lease it back? And if you do sell, do you know the market
value for the trailer? Also, there will always be opportunistic
sales that make sense because the timing or the price is right.
The good news
is that pre-owned equipment is worth more now than ever before,
which makes trade-ins far more attractive now than in the past.
We have weathered the depressed market and the price of used trailers
is steadily rising. The challenge currently facing the industry
is a strong demand that is exceeding supply.
So, if you
are thinking of selling your trailers - now may be a good time
to get the best price. You may be able to obtain higher trade-in
value for pre-owned equipment rather than through a manufacturer
if purchasing new equipment. Selling your under-utilized trailers
also allows you to improve your cash-flow by liquidating assets
and freeing up valuable capital for investment.
Here at GE,
we have an experienced sales force that can assist any customer
through its replacement cycle by locating equipment with our national
dealer network and providing the best trade-in value for equipment.
Whether you are buying or selling, Trailer Fleet Services from
GE has large matched fleets available through our in-fleet inventory
and nationwide remarketing capabilities... plus we can tailor
a program to meet your financial needs.
If you are
looking for late model trailers available for purchase, click
here for our current remarketing deals.
To
submit a question to be answered by a GE expert in a future On
the Move issue, click
here.
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