CLEVELAND – For anyone who has gone vehicle shopping in recent years, chances are they have encountered higher prices and fewer choices. Things are looking slightly better on the pricing front; new car prices are 2.4 percent lower than at the beginning of 2023, according to the Kelley Blue Book. Still, average new car transactions were about 18 percent higher than the same month three years ago when no end was in sight for the pandemic, according to the Kelley Blue Book.
How is the current market impacting PCO buying decisions? Sixty-eight percent of respondents to a recent PCT poll said they purchase new vehicles, while 14 percent purchase used vehicles and 18 percent purchase both new and used vehicles.
“We have been buying new vehicles, but did purchase a few used ones as vehicle shortages became more of a problem,” said Kevin Sherrill, president of Sherrill Pest Control, Manchester, Tenn. “We are running more miles on our service vehicles to help offset some of the increased cost of purchase.”
Still, when trucks need replaced...that is an expense PCOs can't get around. Sherrill said he is waiting on the delivery of six vehicles now and will likely purchase a couple more by the end of the year. "This is higher than we would normally order in a year, but we have more aging vehicles to replace due to the struggles finding vehicles over the last couple years,” he said.
Levi Brody, president of Brody Brothers Quality Pest Control, Baltimore, Md., said higher costs are definitely impacting his buying decisions in 2024. Brody said he recently purchased 15 vehicles and 11 of them cost more than $9000 each, at 2022 pricing. Brody said he plans on holding on to his older spare trucks because there still are very long wait times, especially for commercial caps.
Tony Alaniz, Owner of WeServe Pest Solutions, Dallas, Texas, said his former company only purchased new service vehicles, but since starting his own firm, he’s purchased one used. “Cost dictates everything, so yes the cost will impact me. I would only buy one (in 2024)," he said.