Volvo Trucks North America and Volvo Commercial Finance have announced a new program for dealers and customers to handle used trucks. The new program called Generation2 was announced during the Mid-America Trucking Show in Louisville, Kentucky.
Generation2 recognizes that many carriers and owner-operators owe more on their fleets than the current market value of the vehicles. Intended to help support the resale value of Volvo VN tractors, company officials say that they expect a low number of VNs to be sold in the initial phase of the Generation2 program.
The new program shares the financial risks of used truck sales with Volvo dealers. In addition to supporting the resale value of Volvo trucks, the program is designed to help dealers establish long-term relationships with customers and to help dealers move used truck inventory. Volvo will take on a large share of the financial burden from these sales.
Generation2 purchasers will be buying low mileage VN tractors that meet Volvo standards for used trucks and that are covered by a comprehensive warranty. The warranty covers materials, workmanship, and progressive damage for six months or 60,000 miles. Extended warranties are available, including two-year, 200,000-mile coverage for Volvo engines.
Volvo Commercial Finance has funds available to qualified buyers at up to 200% of the National Automobile Dealers Association stated value of the tractor. These funds are available with no down payment to qualified buyers. Introductory interest rates are projected at lower than the prime rate.
In another move aimed at improving used truck sales, Volvo Trucks North America announced that it has agreed to purchase the remaining 50% of Arrow Truck Sales. Volvo initially purchased 50% of Arrow in December 1998. Ed Justis, whose previous experience includes 26 years with Ryder System, has been appointed president and CEO of Arrow. He joined the company as chief operating officer in May 2000.