DepreciationJun 28th, 2013 | By Editorial Staff | Category: Jack Schrock's Blog
It’s not only what you pay going in, it’s also what you get going out. Yes, the purchase price is important. However, if that’s the only factor you’re considering, you can probably expect to take a bath when it’s time to trade or sell.
The only thing that drops faster than a rock is the resale value of an unknown wrecker or tow truck and there are several reasons. First, does it have all the modern features and benefits? Are repair parts and local service readily available? Finally, is there a resale market for your purchase? If you said “no” to any of these three questions you might want to look elsewhere for your new rig.
R. E. Welch Equipment Sales in Lampasas, Texas, was a successful Holmes distributor, initially serving a five-state area. Yes, he stocked repair parts for all Holmes wreckers, including some that had been discontinued for decades. Also, if your wrecker failed for any reason, he would replace it with a loaner and fix your rig at no cost. And, finally, when it came time to sell or trade, your rig would usually be worth almost exactly what you had paid for it in the first place, subject of course to damage and neglect. How can this be? Well, at the time there were multiple market forces at work, not the least of which was supply versus demand.
And, yes there is another, even more important consideration which has to do with liability. When your wrecker or tow truck breaks as a result of a design or manufacturing/fabrication flaw, does your supplier provide product liability insurance? In my experience Brand X is hard to find when the lawsuits are passed out while the legitimate manufacturer is quick to step forward and assume responsibility where it is due.
Yes, there are many reasons for making a major purchase decision. Be sure you consider them all.