Companies that work in markets internationally often face a common challenge: finding affordable, quality vehicles to expand their fleet within the countries they service. For that reason, many companies opt to have vehicles exported from the U.S. to their international markets.
Is your company in this situation? If so, here’s the good news: Right now, it’s a great time to be exporting pre-owned Class 8 and light-duty trucks to international markets for several reasons.
- Late-model, fairly low-mileage pre-owned inventory is abundant
- Port handling and inland connections have widened
- Interest rates have remained low when financing
In a recent article, TruckingInfo.com noted comments to this effect made by John Larkin, managing director of investment firm Stifel, Nicolaus & Company. Describing Larkin’s outlook, it said that, “…technology, digitalization of commerce, low ocean freight rates, fewer mass epidemics in the developing world, declining global poverty…and the fact that many people in other countries are adopting a Western life-style…creates export opportunities for American goods.”
But there’s even more to it.
Class 8 and light-duty truck exporters deal with a tangle of regulations at both ends of the transaction. Additionally, exporting to certain areas – like the Middle East, Central America, Africa and Asia – has unique challenges, some of which are fluid and unpredictable. The stateside buying and shipping process, at least, can be made far more manageable by choosing the right partners.
To begin with, it almost goes without saying that you want a supplier with a thorough inspection and reconditioning process. Exporters should demand full vehicle maintenance histories in writing, to be certain that vehicles have been well maintained, with routine preventive maintenance in the case of pre-owned rental or lease vehicle inventory.
Selection goes hand-in-hand with condition. In overseas markets, there’s a powerful demand for major OEMs including: Freightliner, Mack, Kenworth, Navistar, Isuzu, Ford, and GMC with Cat, Detroit, Mercedes and Cummins engines. Reefer trucks and trailers from Utility, Mickey, and Great Dane, to name a few, are highly prized in foreign markets. For this reason, it’s often more efficient to shop a major national supplier that has quality inventory flowing in from a variety of dependable sources.
Choosing suppliers that match the logistics you deal with as an exporter is another crucial step. Some suppliers have pre-owned vehicle sales locations near major ports, and can handle shipping logistics as part of their overall solution. Strong logistical support and supply chain continuity are what shrewd exporters look for in a business partner.
The exporter checklist for supplier partners should certainly include those that:
- Provide inland freight to any U.S. port
- Can arrange ocean freight services and insurance
- Supply affordable aftermarket parts and tools for any trucks they sell
- Offer numerous payment options such as wire transfers or letters of credit
- Can provide right-hand drive conversions on pre-owned vehicles of U.S. origin
Yes, pre-owned vehicle export is doing well. But obtaining quality vehicles – then getting them reliably to places like Nigeria, Zambia, Mozambique, Nicaragua, Honduras, Vietnam, and Ukraine – is where the rubber meets the road, so to speak.
Make sure to align with supplier partners with big global reach and dependable inventory to deliver the goods.