CLEVELAND – According to the Kelly Blue Book, in September new car buyers paid $48,397 per vehicle. That is a “big pill to swallow” for owners of route-based businesses like pest control.
There is some good news. On Nov. 7, the Federal Reserve lowered interest rates by a quarter percentage point. This move comes just two months after the Federal Reserve cut interest rates by a half-point. These moves make it easier for Americans to borrow money.
Still, high vehicle prices are having an impact on PCOs considering purchasing options in 2025. According to results from a recent PCT Reader Poll, 45 percent of PCOs said they will purchase a service vehicle only if needed, while another 17 percent indicated they would buy fewer service vehicles. Twenty-two percent said the high price has no impact, we’re buying, while another 16 percent said they are going to purchase used vehicles.
"We are fixing to add one more service vehicle and it's going to be on an as-needed basis," said Billy Blasingame, owner of Blasingame Pest Management, Griffin, Ga. "I contemplated buying two, just to upgrade the fleet a bit, but because of [high prices] we're not going to do that."
One of the reasons Blasingame considered adding two vehicles is because the high costs of new vehicles can be somewhat offset by lower insurance costs. “We traded in a personal vehicle, a Kia Soul, and bought a Nissan Murano. I was expecting our insurance to go up, but it actually went down because newer vehicles have safety features like air bags and lane change notification.”
Rob Jackson, owner of Jackson Pest Management, Leo, Ind., also buys service vehicles on an as-needed basis. “And I buy used vehicles," he said. "I own every vehicle and I have zero debt.”
For Jackson, vehicle purchasing is simple economics. “A new vehicle is a ridiculously overpriced and it depreciates as soon as you drive it across the street. I can still get reasonably priced used vehicles, so that is the way I go. And I know I’m a rare specimen in this industry,” he said.
Participate in PCT’s most recent poll: Are you considering offering wildlife services in 2025?
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