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Buying Buses for a New Contract? Work Backward From the Start Date.

Buying Buses for a New Contract? Work Backward From the Start Date.

Table of Contents

    The contract starts Monday. The buses arrive Friday.
     
    Suppose that's your delivery schedule. If registration is still unresolved and the drivers haven't used these vehicles, you've left a lot for the weekend. A repair discovered on arrival could leave you a bus short on the first morning.
     
    Before agreeing to that schedule, find out what can be completed ahead of delivery and how much time you'll need for the rest.
     
    When you're buying several buses for a new transportation contract, the date that matters is the first day they can perform the work. Build the purchase schedule backward from that day, using confirmed requirements and the people responsible for meeting them.
     

    Find out what the customer will accept

     
    Before shopping, pull the vehicle requirements out of the contract and put them in one place. A school route contract and an employee shuttle contract will ask for different things.
     
    Depending on the work, they may cover model year, capacity, accessibility equipment, restraints, climate control, identification or communications equipment. There may also be inspections or approvals specific to the customer. Mark what's required, what's preferred and what needs a written answer.
     
    Don't treat a verbal "that should be fine" as approval for a substitution. Get it in writing. If the contract calls for a particular configuration, get a proposed alternative accepted before buying it.
     
    Ask who has authority to approve the vehicles and when that person can inspect them. A bus can be mechanically sound and still fail to meet the job you bought it for.
     
    For a multi-bus purchase, check every assigned vehicle against the requirements, and the proposed backups too. A substitute that can't carry the intended passengers won't solve the missed pickup.
     

    Find out what could delay the first route

     
    Start with the delivery estimate. Then ask what still has to happen before those buses can carry the passengers you've agreed to move, and who has committed to doing it.
     
    For each bus, identify what must happen before it can enter service, who will do it and how you'll confirm it's complete. Some work can happen at the same time. Other work has to wait for a document, an approval or a part.
     
    Before the first route
    Evidence to have in hand
    Vehicle accepted for the work
    Confirmed specifications and any required customer approval
    Purchase ready to close
    Agreed terms, available funds and any lender conditions satisfied
    Repair work complete
    Written completion record and any needed reinspection
    Insurance and registration ready
    Confirmation appropriate to the vehicle, operation and jurisdiction
    Delivery arranged
    Exact units, destination, transport method and agreed timing
    Drivers ready
    Required qualifications checked and familiarization completed
    Service rehearsed
    Route timing, boarding arrangements and backup response tested
     
    There isn't a universal number of days to put beside these tasks. Get actual dates from the people doing them. Allow time to correct a problem after an inspection rather than assuming the inspection will produce good news.
     
    Take four buses needed on the same morning. Three may be ready while the fourth waits for equipment work. If the contract needs all four, the fourth bus determines whether the plan works.
     
    If equipment work could hold up the fourth bus, ask about a different vehicle or arrange an acceptable temporary replacement before agreeing to the start date.
     

    Ask what "available" means for these buses

     
    When you call about a group of used buses, establish which specific units are available and where they are. Ask what preparation remains, when they can be inspected and what must happen before release.
     
    Clarify whether delivery means the buses leave the seller on that date or reach your location. Get the destination and transport method into the quote. If the vehicles will arrive separately, find out which one comes first and what happens if a later arrival slips.
     
    A staggered delivery can work when the service starts in phases. It does very little for a buyer who needs every bus at six on Monday morning.
     
    You also need a receiving plan. Name the person who will check the VINs, condition and agreed equipment when the buses arrive. Record discrepancies promptly and follow the process in the purchase agreement. The person available to sign for delivery may not be the person qualified to accept the fleet.
     

    Give the payment schedule its own review

     
    If financing is part of the purchase, get the lender's requirements for the actual vehicles early. Ask about documentation and release of funds, including what happens if one unit changes or the deliveries split.
     
    Confirm when funds can be released before scheduling collection or delivery.
     
    List when you'll pay for the buses and when you expect the customer to pay you. Deposits and initial work may come due well before the first transport invoice gets paid. Fuel and wages need funding during that gap, too.
     
    Suppose, purely as an illustration, service starts November 2, you invoice at month-end, and the customer's terms are net 30 after receipt. If the customer receives the invoice November 30, payment under those terms would be due December 30. You'd need to cover nearly two months of operations before that payment, plus any delay. Use your actual invoicing and approval terms to calculate how much cash you'll need.
     

    Drive the routes before service starts

     
    Before the first passenger trip, have qualified staff test the intended routes with the actual vehicles when practical. Check the entrances, turnarounds and places where passengers will board. Compare the time available with the time the route takes. Then add Monday traffic.
     
    Include boarding and equipment use in the exercise. A drive around the block won't tell you whether the planned pickup interval allows enough time for the assistance your passengers need.
     
    Confirm that drivers are qualified for the vehicles and the work, and that staff understand the installed equipment. Requirements depend on the operation and jurisdiction; check them during vehicle selection, while changes are still possible.
     
    Work out what happens if a bus or driver is unavailable. Name the replacement vehicle and driver, and assign someone to notify the customer.
     
    If outside coverage is part of the answer, confirm the provider's availability, suitability and terms. Ask how much notice the provider needs and whether it can supply a suitable vehicle during your operating hours.
     

    Put a decision date ahead of the start date

     
    Schedule a readiness review before the service starts. If your backup provider needs a week's notice, holding that review the day before launch won't help. Name the person who can authorize replacement transport or agree on a revised start with the customer.
     
    At the review, check each bus's remaining work and approvals against the time available. Then decide. Use the backup, or discuss a change with the customer. Don't leave an unresolved repair marked "should be ready" without a completion date and someone responsible for confirming it.
     

    Have a start date? Call us before it becomes a rush order.

     
    Call BusesForSale.com at 877-287-7253 with your vehicle count, service location, budget and the date the buses need to be working. Bring the vehicle requirements from the contract, with confidential customer information removed.
     
    You don't need to have a model picked out. Our team can help identify suitable options and discuss inspections and delivery timing for the specific buses you're considering. Ask what remains to be confirmed before you build those vehicles into your launch schedule.
     
    We help people move people.
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