Please take a moment to consider the following information which may help you view your hearse less as an overhead and more as an essential component for increasing your bottom line.
Obviously, the foremost consideration in your mind when thinking about the purchase of a hearse is cost. However, almost all my clients forget to consider that their hearse is (or should be) a source, or independent modality, for generating income. Granted, the check you receive from your client goes into a general operating account… but if you were to isolate your hearse (what it costs and what it earns), you may very well discover that this seeming overhead actually produces a significant income. In many cases the highest margin in your profit generating arsenal. Identifying this principle and calculating your hearses profit will help provide clarity when determining new or used. Additionally, it is precisely this same premise that I strive to provide my clients information to make an informed decision to help maximize this revenue resource.
Click this link to easily calculate the profit potential of a new coach
The bottom line determining a new vs. used coach is your case load, the line item amount you charge for the coach, and average uses per month. Let’s say you average using your coach ten or more times per month and charge $350.00 or more. In this case I recommend you consider leasing a new coach. Not only will you generate a sizable profit, the new coach will be under warranty, reflect your business admiringly and have a considerable value at lease end to provide you with the most favorable options going forward. Historic low interest rates are causing lease payments to be comparative with lease payments fifteen years ago… and in most cases the tax advantages far outweigh traditional financing.
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If, on the other hand, your numbers fall below the aforementioned; then I would certainly recommend that you consider purchasing a used hearse in keeping with a positive revenue stream. However, let me point out one common scenario that is almost always overlooked. I have a lot of clients that keep their hearse around ten years and are looking for a good low mileage four or five-year-old hearse as a replacement. It is no secret this grade hearse typically costs $55k to $70k. So let’s say you find a beautiful five-year-old hearse for $60k... In five years that hearse will be ten years old and you will probably want to replace it with another quality five-year-old hearse which will most likely cost $65k or more at that time. In this scenario you would have been far better off having purchased a new hearse and keeping it ten years… not to mention the warranty, serviceability and image to your business.
As always, I am here to understand your business and help you to make the best informed decision in meeting your professional vehicle needs.
The next time you are considering acquiring a new or used coach, or just have questions, I hope you will consider me your first resource.