Whether you’re selling your own used trucks or are looking to buy a used truck, the objective is basically the same: get the most value for it.
For sellers, that means getting the best selling price. For buyers, it’s about getting the best purchase price.
That’s the word from Steve “Bear” Nadolson, an acknowledged expert on used trucks and president of the Bear Marketing Group, a company that specializes in customized training and consulting for the used truck industry.
Another thing used truck sellers and buyers have in common, he adds, is the importance of having an accurate appraisal of the unit. To get the best value, whether selling or buying, both parties need to become proficient at estimating any repairs and any reconditioning the unit would need.
Why?
“Not doing an accurate appraisal will ‘cost’ the seller or buyer money,” Bear says. An appraisal is the written document that will be the basis for determining the “as is” – the actual cash value – or the investment that will be placed on the truck being appraised.
He explains there are four levels to a good used truck appraisal:
Level 1 – Compile a complete and accurate list of the unit’s specs, noting any “positives” that add value, along with any “negatives” that detract value. Also, checking for any remaining OEM or aftermarket warranties.
Level 2 – Do a complete “condition of systems” report. The purpose of this evaluation is to identify any mechanical problems, detect body damage and recognize areas needing body repair.
Bears says among the major “field checks” that should be done on a heavy duty vehicle are:
- Determine if there are contaminates in the oil and/or in the coolant.
- Check the inhibitor level.
- Check for liner cavitation.
- Check the operation of the air conditioner.
- Check the clutch, if so equipped.
- Inspect the DPF, muffler and exhaust system.
- Determine if the vehicle has high blow by. Blow by occurs when the explosion that happens in a diesel engine’s combustion chamber causes fuel, air and moisture to be forced past the rings into the crankcase.
- Check the head gasket.
- Check for cracked and broken springs.
- Check brake shoes, drums and linings.
- Check tires, including condition, tread depth and whether they are retreads.
- Check aluminum and steel disc wheels for cracks.
- Check slip joints and exhaust ports for indications of internal engine problems.
- Check the torque arm bushing.
- Check U-joint play.
Level 3 – Estimate the reconditioning costs needed to present and remarket the truck.
Level 4 – Know how to determine a value – both wholesale and retail for the unit being appraised.
This involves several things, including:
- Knowing the selling history of similar units in one’s area
- Knowing auction values
- Using used truck valuation guides
- Networking
Hands-on
I had the opportunity to sit in on a recent Bear Marketing Group Advanced Used Truck Appraisal training session conducted by Bear in Nashville, TN. Day one was in the classroom going over the process of conducting a comprehensive appraisal on a used truck. Day two was going into the field and doing an appraisal on a tractor, dump truck and straight truck.
How to perform all four levels to a good used truck appraisal was part of the training session.
When Bear invited me to the session, he informed me that attendees would be climbing all over trucks – in, on and under.
In attendance were (as you would expect) truck dealer used truck personnel, but also personnel from fleets.
Even though I was sitting in on the session, Bear didn’t let me slide and had me become a student. I didn’t bring the appropriate attire for “truck climbing,” but I did find the perfect hand cleaner.
I must say, the training session was highly educational and a real eye opener. It was also extremely nice of the others taking the class to help me through the hands-on training.
Also participating in the training session were representatives for TA Truck Service. They discussed and demonstrated TA’s 24/7/365 OnSite inspection and repair services that are now offered nationwide.
Graduation Day
As with any course I take, I gave it my all. I am proud to say I passed the course and received a Certificate of Completion for Advanced Used Truck Appraisal, which I have added to my Wall of Achievements.
Many thanks, Bear.
Photos from the training session can be found here.
