First Name | eric |
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Last Name | bassett |
Email Address | eric@riverview-trucks.com |
Affiliation | |
Subject | Proposed on highway laws |
Comment | I am a partner of Riverview International Trucks in West Sacramento. Riverview is a full service truck dealership that has 80 employees, sells over 400 new and used trucks per year, and has a rental and lease department that has over 350 trucks in its fleet. Riverview and it's 80 employees are very concerned that the proposed legislation is going to put our customers out of business, is going to hurt the financial stability of our company, and is going to put our dealership at a competitive disadvantage with dealerships and lease and rental companies that are based in other states outside of California. The proposed legislation will put California business owners out of business. They will be forced to shut down instead of attempting to find loans that do not exist to take on new equipment. Do you know that a new truck over 33,000 GVWR has nearly 20% of its cost is taxes? State sales tax at 7.75% plus Federal Excise Tax at 12%. Do you know that finance companies are not financing commercial vehicles due to the issues with the banking institutions? My #2 truck financer GE Capitol has frozen all of its capitol for commercial vehicles. My #1 lender Navistar Financial now requires A and B credit to have substantial down payments at less than aggressive interest rates. These California businesses that have equity in the equipment that you are forcing them to replace are now finding out that the used equipment has little or no value in the California Market Place. These Proposed laws in combination of the economy have killed the used truck market place. My dealership has 60 used trucks on the lot that are all 2000 model and newer that we cannot sell because of these laws. You have scared the 2nd user into fixing his old equipment and not investing in good used trucks. Sounds counterproductive?? My competitors in the lease and rental world namely Ryder and Penske are located in all 50 states. They are simply taking there used equipment and sending it out of state. We do not have that network to spread the used trucks to. I heard one of my customers, a California based business, was selling some 2004 model trucks with low miles because his business had slowed. He actually took a low offer from a competitor of his who sent the 2004 units out of state to one of their many job sites. The company simply has been sending 2008 model trucks with 2007 emmission engines to California and sending their used equipment to other states to use. Riverview nor other California based businesses do not have this option. We are losing money on our used trucks because of your legislation and we are at a competitive disadvantage in the market place. When customers close their business we lose sales. We lose sales the state loses sales tax revenue. When we lose enough sales we will downsize. When we downsize you have people out or work not spending the paycheck, not creating all the taxes that a working employee creates. Riverview may gain some new truck sales with the proposed legislation but it will not equate to the loss of business from our customers, the loss of money on used trucks, and the competitive disadvantage you have created. My last point is you have to look at the current economic situation that the State of California is in. Look at the fleet of trucks that the state owns and runs to fix the roads, to go to fires, to transport state owned goods. For you to comply with the proposed legislation it would cost millions and millions of dollars. To put particulate filters on some of these units is a piss poor alternative that is an expensive band aid that will last only a few years. Why expect the business owners of California to comply with this legislation if the State of California cannot comply on its own fleet? The State will go out of business as well... Attrition and a sliding scale will put new units into the hands of California Businesses. In 2011 do not allow a 1990 or older vehicle to be registered or brought into California. In 2012 move to 1991 and 1992 model years. In 2013 move to 1993 and 1994 model years. You will get to where you want to get to in time. We all want cleaner air. We all want our trucks to run cleaner. But at what cost? Thanks Eric Bassett Partner Riverview International Trucks LLC 916-371-3110 www.riverview-trucks.com |
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Date and Time Comment Was Submitted | 2008-12-03 16:36:00 |
If you have any questions or comments please contact Clerk of the Board at (916) 322-5594.