Key Highlights
Key highlights:
- In a challenging economic environment, fleets need to make the most of their procurement and resale strategies
- Some ways to optimize procurement include purchasing higher-than-needed horsepower engines, then rating them down for a better trade-off later, as well choosing your engine and transmission carefully
- Prioritizing extended warranties and safety systems will also boost your truck when it's time for resale, as will some common courtesy moves like resetting ECM passwords
In the high-stakes world of fleet management, every spec’ing decision impacts your bottom line—from fuel costs to resale premiums. With diesel prices fluctuating and trade cycles shortening to two to three years, savvy operators are rethinking how they order, operate, and offload trucks.
Drawing from industry insights, this article explores proven tactics to optimize horsepower, warranties, drivetrains, and more. These strategies can shave thousands of dollars off operating expenses while boosting trade-in values by 5-10% or more. Whether you're running regional haul or long-haul routes, these tips can help you spec smarter and trade stronger.
Optimizing horsepower: Buy high, run low, trade high
One of the most counterintuitive yet effective strategies is ordering trucks with higher-horsepower engines than needed for daily operations, then derating them for peak efficiency. For instance, spec a 455-hp engine and tune it down to 400 hp, or go for 505 hp and drop to 455 hp. This approach leverages the engine's full potential at trade-in time, where buyers pay a premium for untapped power.
Why does it work? Derating reduces engine stress, improving fuel economy by 1% to 2% through lower rpms and optimized torque curves. NACFE’s most recent Fleet Fuel Study on similar powertrain tweaks showed fuel savings of up to 3% in line-haul applications. At $3.50 per gallon and 7 mpg average, that's real money — potentially $1,500 annually per truck. When trading, resetting to full hp signals "fresh" performance, often adding $2,000-$5,000 to the resale value, per dealer reports on platforms like TruckPaper.
The key is partnering with a tuner who uses ECM recalibration for seamless adjustments. Avoid over-derating; aim for 80-90% of rated power to maintain drivability. Fleets like J.B. Hunt have adopted this, reporting smoother trades and fewer breakdowns.
Extend warranties for long-term trade wins
Extended warranties aren't just insurance — they're a trade-in accelerator. Opt for coverage that leaves your trucks with at least one year and 100,000 miles remaining at the end of a cycle. This residual protection can outperform the warranty's upfront cost by 20-30% in added resale value.
Consider a $3,000 extended plan on a $150,000 truck. It covers major repairs like turbo failures or injector issues, common in high-mileage diesels. But the real ROI comes at trade-in. Buyers — especially owner-operators — prioritize low-risk assets. Transferable warranties (most OEM ones are) can justify a $4,000-$6,000 premium, according to Kelley Blue Book data for commercial vehicles. Non-transferable plans? They're worthless in dealer trades, so always confirm portability.
In practice, fleets extending to 200,000 miles see fewer out-of-warranty claims, preserving truck conditions. Pair this with proactive maintenance logs to prove reliability — dealers love documented uptime.
Prioritize safety systems: Non-negotiable for resale
Safety tech isn't optional anymore; it's a resale must-have. Spec trucks with advanced driver assistance systems (ADAS) like collision mitigation, lane-keeping, and adaptive cruise control — mandatory for many secondary buyers, including rental fleets and small carriers under FMCSA regs.
These features boost trade-in values by 3-5%, as they reduce liability exposure. OSHA standards (1926.601) already require basics like brakes and seatbelts, but adding telematics-integrated safety can command $1,000-$3,000 more at auction. For example, modern safety systems correlate with 15% higher resale bids in Ritchie Bros. sales.
The upside? Beyond compliance, they cut insurance premiums by 10-20% and improve CSA scores. For high-mileage trades (300,000+ miles), safety-equipped trucks move faster, minimizing holding costs.
Be wise about powertrain choices
When working with your OEM on truck specifications, prioritize powertrains that maximize resale value while balancing performance and efficiency. The powertrain — engine, transmission, and axle configuration — is the heart of your truck, influencing fuel costs, maintenance, and buyer appeal at trade-in. Choosing the wrong setup can cost you $5,000-$15,000 in resale deductions, especially with unproven OEM engines.
- Engine selection: Proven reliability rules — stick to engines with a track record of durability and efficiency. This can lead to 10-15% higher resale values than less reliable options. Common issues to look for include EGR clogs, turbo failures, injector issues, derates from biodiesel sensitivity, and DPF longevity. These concerns can slash resale by $10,000, as secondary buyers — especially owner-operators — favor low-risk engines.
- Transmission and axle strategy: Pair your engine with a transmission that aligns with your duty cycle and resale goals. Automated manuals are preferred for fuel efficiency (2-3% better than manuals) and broad buyer appeal. For axles, 6x4 configurations outperform 6x2s at trade-in, despite the latter’s 2-3% fuel savings and 350-450 lbs. lighter weight. NACFE reports confirm 6x2s save fuel in flat-terrain linehaul, but their $10,000 resale deduction because of traction concerns in adverse conditions harms ROI. Calculate savings: (Annual miles/MPG improvement) x Fuel cost - Deduct. For versatile fleets, 6x4s with 3.42 to 3.55 ratios balance efficiency and resale.
Pre-trade prep: Passwords and partner negotiations
Small touches seal big deals. At trade time, reset ECM passwords to all zeros — a factory default that reassures buyers of clean access, avoiding $500+ dealer fees.
Negotiate with trade partners upfront. Agree to $2,500 in body damage and "round and black" tires (no recaps needed). For 500,000-mile trucks, skipping cosmetic fixes saves $1,000-$2,000 without eroding value — buyers prioritize mechanical condition over appearance. High-mileage haulers trade cheaper anyway; minor dings don't impact ROI.
Sources to determine resale values
Accurate resale estimates are critical for spec’ing decisions. Leverage these sources for reliable data.
- Auction platforms: Ritchie Bros. and IronPlanet provide real-time sale prices for specific makes, models, and powertrains. Filter by year, mileage, and region to benchmark your trucks.
- Dealer marketplaces: TruckPaper and Commercial TruckTrader list retail prices, reflecting what secondary buyers (owner-operators, small fleets) pay. Compare similar specs to spot trends.
- Industry reports: Kelley Blue Book’s commercial vehicle guides and NADA Used Truck Values offer regional resale estimates, factoring in mileage and condition. These project $4,000 to $6,000 premiums for transferable warranties.
- OEM and dealer insights: Consult your OEM or trade partner for regional demand data. They track which powertrains move fastest.
Cross-reference these for accuracy, as mileage, region, and market trends (e.g., diesel vs. electric demand) shift values.
Spec for the cycle, not just the mile
These strategies — derating for efficiency, warrantying for peace, safety for compliance, and smart negotiations — turn trucks from cost centers to assets. A well-spec'd truck can yield 5-15% higher trade-in values, per American Transportation Research Institute benchmarks, funding your next order. Start with a spec audit: Model your routes in tools like Cummins PowerSpec, then pilot one truck. Given trucking's margins, these tweaks aren't luxuries — they're leverage.
About the Author
Mike McHorse
Director of Industry Engagement
Mike McHorse is NACFE’s director of Industry Engagement. His responsibilities include interfacing with fleets, OEMs and suppliers, writing articles, conducting workshops and giving presentations. McHorse works closely with the fleets, drivers and sponsors for the Run on Less demonstrations. As a Daimler Truck and Premier Truck Group employee for 33 years, he held positions in product marketing, communications and sales development. A dedicated career in the heavy-duty truck segment allowed him to gain a thorough understanding of commercial fleet and owner-operator operations, vehicle fuel-efficiency and driver-retention features and dealership operations.