Buyers guide



FTA guide to buying a pre-owned large goods vehicle

Many large fleets choose to replace new vehicles at five years old or less. With 60 per cent of the current lgv stock older than five years and 26 per cent (110,000 vehicles) older than 10 years, many operators are choosing to buy pre-owned vehicles. The impetus to buy used vehicles has been given additional impetus by the introduction of digital tachographs. Operators are choosing the keep their fleet, or parts of their fleet, exclusively analogue, until drivers become familiar with digital tachograph-equipped vehicles and potential savings from analysing drivers hours using digital become establish.

To ensure that an informed decision about a pre-owned vehicle purchase is made, buyers should take into account factors relating to:

- the supplier and seller of the vehicle

- the vehicle's condition and authenticity

- its specification in relation to operational needs

- meeting O licensing obligations

This FTA briefing note is intended to highlight how buyers can plan ahead when purchasing a pre-owned vehicle, what they should look for when selecting a vehicle and the questions they should ask before the purchase is finalised.

Seller checks

Supplier: always check that the supplier is reputable. Ask him if he can provide any referrals that you may be able to contact

Previous owner: contact the previous owner if you can to ask whether the odometer reading appears correct and any other information regarding the vehicle's reliability. If the vehicle is one of a batch from a company that has gone into insolvency, then the vehicle's maintenance may have suffered as a result of financial stringencies

Vehicle condition and specification

Have the vehicle inspected by a reputable independent body. When you have the vehicle inspected, ask the inspecting body to record the entire specification of the vehicle including such things as the Vehicle Identification Number (VIN). The specification check is especially important when vehicles are purchased unseen. Body type, components such as cranes or tail lifts and size requirements for example can be vital to the vehicle being suitable for the role it is being purchased for

Have the inspecting body carry out a full extended road test as many defects, such as engine oil leaks, only show up when the vehicle is at full operating temperature

Establish whether the seller is offering any Mechanical Breakdown Insurance (MBI) with the vehicle. Remember, MBI is not a warranty; it is an insurance-based product giving limited cover in respect of mechanical failure. Read the small print to find out what cover you have. In particular check if there are any mileage restrictions, components excluded from the MBI such as tyres, or excess payments linked to claims being made on the policy

Ensure the vehicle has been serviced and maintained by a high quality third party or in-house provider

Check engine power output and driveline as adapting to draw a trailer is far more cost effective than selling the vehicle and upgrading, this can help if you have peaks and troughs in your operation

Vehicle price and future operating costs

Research the used commercial vehicle market for similar vehicles to ensure that you are not paying in excess of the market value. Allow in the capital cost for paintwork and sign-writing in your livery

Check that the vehicle had previously been granted an RPC certificate as this can sometimes be overlooked. If the certificate has lapsed get the seller to re-apply for the RPC as any reduction in operational costs is a benefit

Check the Euro rating of the vehicle as this will affect the market value when you come to dispose of it

Paperwork audit trail

Ask for sight of any relevant paperwork such as the vehicles current annual test certificate, registration document, plating certificate, tachograph calibration record and any certificates that may be appropriate to comply with LOLER and PUWER legislation in respect on ancillary equipment such as tail-lifts and vehicle mounted cranes

Ask to see the vehicles service history. Operators are required by law to store the last 15 months of service paperwork, so this amount at least should be available

Check that the mileage tallies with the service paperwork. Look for evidence that the vehicle has not had a new head fitted. Analogue heads that have been replaced will have a sticker inside the head mounting to indicate this. Digital tachographs that have been replaced will have a new calibration sticker fitted (usually on the door pillar or some other prominent place). If it has, evidence of this should be recorded in the vehicle's service history

Have an Hire Purchase Information (HPI) check carried out on the vehicle. This will show up whether the vehicle has been an insurance write-off in the past or is still the subject of a finance agreement. Should the vehicle still be subject to a finance agreement, then the finance company own the vehicle and would repossess it. Should an HPI check show finance still outstanding, then do not purchase the vehicle unless you have an agreement with the finance company that you will continue the payments or you have sight of evidence that the finance has been settled in full before you hand over any money

Check axle load operating limits on the plating certificate, ie uprated front axles if hydraulic crane is mounted behind cab assists in diminishing loads and gives a greater flexibility in axle loading parameters

Operational considerations

Ensure sufficient parts and maintenance back-up for the marque and model of vehicle and ancillary equipment is available

Confirm the status of digital tachograph data relating to the previous owner

Check that you have a suitably licensed driver for the vehicle, with appropriate training for the use of any ancillary equipment fitted. If in doubt about the authenticity of drivers entitlement contact DVLA's Driver Data Enquiry Service. Remember you'll need to have the driver with you if you are making a one-off enquiry. Alternatively you can undertake ongoing checks if you use a mandate form (D785), downloadable from the DVLA website

From late spring 2008 driver licence checks will be available online via the Transport Office web portal for a fee of £4.00 per licence check

Ensure a high quality vehicle repair and maintenance provider is available to provide on-going support

Obtain a weighbridge ticket for the vehicle to identify the final payload as some ancillary equipment weighs more than you think, it is too late and expensive to discover that the vehicle you have purchased is not capable of carrying the required load

Is the vehicle's engine on the TfL Eligible Engine List to obtain an LEC? Check via the TfL website for compatability. This has an effect on your operation if you need to enter the LEZ zone

As an operator have you made allowances for possibly out growing the vehicle in the near future, ie new contracts, increase in business etc?

O licence compliance implications

If you are an existing operator licence holder you must ensure that there is a margin on your operator's licence to accommodate the new vehicle. You need to inform VOSA's Traffic Office in Leeds of the new vehicle being added to your fleet. VOSA must also be notified of the date any existing vehicle is being taken off your licence. After a vehicle has been sold on, make sure that you are not incurring points on your Operator Compliance Risk Score (OCRS) for the vehicle. Ask VOSA for a Vehicle Test Maintenance Statement and Vehicle Encounter Report on a monthly basis to ensure your score is constantly verified. These reports can be automatically emailed to you and will be available online from spring 2008

If the new vehicle is the first that you are using that falls into scope of operator licensing, you should apply to VOSA's Traffic Office in Leeds for a licence to be granted

If the vehicle is in addition to your existing fleet, check you have suitable parking for it at your operating centre

How FTA can help

Pre-purchase inspections

Thorough inspection of the vehicle condition including an extended road test on a range of road types and verification of vehicle specification.

Due diligence inspections

Inspection of the condition of vehicles on a fleet being taken over to:

- establish work needed to bring condition up to appropriate standards

- provide independent basis for fleet valuation

FTA vehicle and fleet valuations

Verification of vehicle condition to provide qualification of range values on used vehicle prices for standard and specialist body types.

Further information

Commercial vehicle market value

Glasses Guide; CAP Guide; Internet sales sites; Trade press

OCRS Score

VVOSA: email: datacare@vosa.gov.uk; or write to: Data Services, VOSA, Welcome House, 91/92 The Strand, Swansea SA1 2DH

Notification of O licence changes

VOSA: Vehicle changes fax: 0113 249 8142

Hire Purchase Information check

www.hpi.co.uk

Driving licence authenticity

DVLA Driver Data Enquiry Service tel: 0870 24 00 009 Downloadable mandate form available at:www.dvla.gov.uk/forms/onlineforms.aspx

Driving licence entitlement

FTA's Member Service Centre: 08717 11 22 22* (calls may be recorded for training purposes).

TfL Eligible Engines List

TfL