How do I check a courier company’s spare vehicles and breakdown plan?
Ask how many vehicles sit unused on a normal day, what state they are in and who decides when to swap one in. Then ask for the last few breakdowns and how each was handled. A real plan names a person, a tow contact and a route cover, not just a spare van.
Visit the yard and look at the vehicles. Which are in use, which are parked and which look like they will never move again? A spare that needs repairs, or is missing insurance or plates, is not a spare. Ask how maintenance is tracked and who signs off.
Ask for recent breakdown stories. How long was the route uncovered, who was called first, and how were customers told? Look for a pattern. If the same vehicle keeps failing, ask why it is still on the road. Find out who covers a route when a driver or vehicle is out. Does a standby driver exist? Can a manager step in? Can another route absorb the work?
Ask whether the company has a written plan or relies on the owner’s phone. A buyer should know how the plan works without the owner present. Finally, ask your insurance broker and accountant how the fleet is covered and recorded. Ask what the insurer expects the company to do after a breakdown, and who files the paperwork. Also ask how often spare vehicles are started and driven, because a vehicle that sits idle often fails when it is needed. Jot down what you learn as you go, and take it to your adviser before deciding.
Key takeaways
- Inspect the yard and confirm each spare is ready to run.
- Ask for recent breakdowns and how long routes went uncovered.
- Find out whether the plan works without the owner.
Related reading
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Buying
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Selling
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Transport CanadaGovernmentMotor carriers, commercial vehicles and drivers
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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