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FedEx Discussions
Buying a Fedex Ground Route
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<blockquote data-quote="dmac1" data-source="post: 2358907" data-attributes="member: 60252"><p>You must be aware that as a truck gets older, it requires MORE maintenance, I never said a new vehicle requires no maintenance. The difference is what matters. When the cost of excess repairs and vehicle rental costs gets close to the cost of the payment on a new vehicle, it can make sense to buy a replacement. And the depreciation saves on taxes. The taxes saved on depreciation and maintenace can in some cases make up for the payment. Each contractor needs to decide personally. But my point was that since fedex can unilaterally void the contract or non-renew, it is good that you have no debt if it happens to you, even if a new vehicle actually saves you money.</p></blockquote><p></p>
[QUOTE="dmac1, post: 2358907, member: 60252"] You must be aware that as a truck gets older, it requires MORE maintenance, I never said a new vehicle requires no maintenance. The difference is what matters. When the cost of excess repairs and vehicle rental costs gets close to the cost of the payment on a new vehicle, it can make sense to buy a replacement. And the depreciation saves on taxes. The taxes saved on depreciation and maintenace can in some cases make up for the payment. Each contractor needs to decide personally. But my point was that since fedex can unilaterally void the contract or non-renew, it is good that you have no debt if it happens to you, even if a new vehicle actually saves you money. [/QUOTE]
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