Gregg Goedde

November 30, 2011

Essentials of Financing—

Making wise financing decisions can be difficult.

When should you trade?

When should you add to or reduce the size of your fleet?

Buy

Upgrade

Fleet ProfileFinance Trade/Sell

1. Does your current fleet match your customer base needs?

a) Vintage of equipment

b) Proper seating and size

c) Wheelchair requirements

d) Seatbelt regulation

e) Emissions regulation

f) Color or specialty unit

2. Cost of ownership:

a) Maintenance cost increasing

b) Down time

c) Cost or goodwill lost due to image

d) Depreciation

e) Employee frustration and lost productivity

3. What type of equipment to use as replacement?

A. NEW

1) Customer image

2) Warranty

3) Latest technology

NEW (cont’d.)

4)Latest regulations

5)Your new coach / Clean start

6)Cost of operation / including payments

7)Regulations are driving coach prices

B. USED1) Customer image

2) Warranty?

3) Condition and past use

4) Meet your regulatory and technological needs

5) Cost of operation/ including payments

2001 Van Hool C2045

C. REFURBISHED OR UPDATED COACH1) Customer image

2) Warranty?

3) Condition and past use

4) Meet your regulatory and technological needs

5) Cost of operation/ including payments

NappaneeWarehouse

NappaneeWarehouse

Completed “Refurb” Interior

Van Hool C2045“before” and “after”

Greyhound “before” and “after”

4. TIME TO BUYA. Sell or Trade?

1) Sell Where and how to sell Financing and taking trades Condition 

2) Trade Condition of trade is a reflection on your

company Clean Trade = $$$$$$ and better

financing Clean trade will provide better response

from the seller

5. Financing a coach purchase A. Current Market conditions

1) Fewer sources

2) Credit parameters are much tougher. Shorter terms, more money down

3) More investigation into customer’s background & history

B. How do you get money? What to do!*Know your business!

1) Manage costs, know your revenue source, pay your bills in a timely manner, keep and understand accurate financial statements (quarterly)

2) Have copies of contracts or detailed description regarding use of additional unit(s)

3) KNOW your pay history and be ready to detail any reasons for late pays

4) Be prepared to offer additional info or anything that promotes your company and its needs

2) No longer “I have the business…I just need a bus”

3) Seek opportunities to expand on your current business

4) be prepared to make a financial commitment ($ down)

C. Opportunities in this market

1) Companies in your area may have had to reduce the fleet or have gone out of business

2) Pick up buses at good prices

1) from the manufacturers

2) from banks (repos)

D. Perception and understanding the details of your business will get you money and funding to grow your business