New vs. Refurbished Chassis: Brand New is Better for Your Bottom Line
No one wants to spend more to get less.
Unfortunately, with refurbished chassis you run the risk of older equipment failure and higher M&R costs – which can make deep cuts to your bottom line.
“You can give remanufactured equipment a paint job, put some new tires on and maybe even replace some of the mechanical things, but it’s still old – even 25, 30 years old,” says Doug Hoehn, Executive Vice President of Chassis & Managed Assets at Milestone.
With a brand-new chassis, there is minimal to no M&R. When compared to new equipment, overall operating expenses for a refurbished chassis will still be higher. Over time, a new chassis is cheaper to operate because they do not have wear and tear and incur virtually no maintenance expenses.
For example, in a standard chassis pool in the Midwest, maintenance for one year for a Milestone chassis in the COCP (Chicago Ohio Pool) averaged $0.70 per day, compared to the average maintenance of the total pool at $4.44 per day.
In a standard one-year lease period, this means a Milestone chassis costs, on average, $255.50 over one year compared to an average total pool cost of $1,620.60 over the same period of time – making it over six times more expensive to lease a refurbished chassis vs. brand new.
Using a new chassis means you’ll stay on the road longer, reduce maintenance costs (and in turn reduce the amount of time a driver would have to wait for repair) and make substantial increases to your bottom line.
Read the Case Study – Quik Pick Express
Staying Nimble, Flexible.
Milestone’s open architecture plans are designed to meet our clients’ specific goals.
- Customer: Quik Pick Express