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5 Key Things to Know: FedEx P&D



If you want to run a FedEx Ground P&D Routes business but know nothing about commercial pickup and delivery vehicles, getting started can seem challenging.

But by the end of this guide, you’ll have the basics covered to make the decisions easy. That being said, let’s begin:

FedEx Requirements for P&D Vehicles:

  • Color should be white with FedEx Contractor Name and DOT number.
  • All doors must have locks
  • Depending on the vehicle type, certain specific dimensional requirements should be met.
  • Should have a VEDR (Video Event Data Recorder)
  • If you choose brand advertising, there will be FedEx Ground decals according to brand specifications.
  • Depending on the vehicle type, certain specific shelf requirements should be met to secure packages during transport.

Tips for choosing the right P&D vehicle:

  • For longer distances, use diesel
  • Older vehicles will require more money in maintenance and repairs; go for new ones
  • Add maximum safety equipment
  • For high volume stops, go to step cars
  • Don̵
    7;t go for cutaway petrol cars as they increase inefficiency

P&D vehicle maintenance costs:

The commercial P&D vehicles are stressed MUCH more than regular cars, so it makes sense that their maintenance costs are also higher. These vehicles are driven hundreds of miles every day; their doors open and close hundreds of times every day, and they carry so much cargo over miles.

All of these things put more stress on all of their parts, and as a result, more money is needed to repair or maintain them than regular vehicles.

If you use Step Vans, maintenance costs can fall between $8,000 and $12,000 per year. However, if you use cheap regular vans or vans, you can expect to pay even more than this in maintenance costs.

P&D vehicle life:

Commercial trucks can go up to 300,000 miles before needing repairs. But if we’re talking about gas cars, you can expect major repairs after around 100k miles and costly engine replacements after passing 150k miles. Engine replacement cost can go well over $10k.

Other repairs like rebuilds and transmission replacements can set you back $6k+.

For diesel vehicles, you can expect a rebuild after it goes over 200,000 miles. The cost can be over $12k if a rebuild is necessary.

Due to these high maintenance and repair costs, we always suggest that P&D contractors follow a strict replacement schedule as running an old vehicle will cost you much more than replacing it with a new one. Here is that schedule:

  • Drive incremental diesel cars for up to 400,000 miles or for 4-5 years with a rebuild.
  • Gas step cars should be replaced after they are 4-5 years old or have reached 400,000 mileage with up to two engine changes.
  • For regular vans and gas shutoffs, replace them before reaching 150,000 miles

Do not purchase any vehicles that have passed these thresholds when starting your P&D business. Always go for a new van.

P&D vehicle costs:

If you choose new P&D vehicles, remember that they can be a bit expensive. However, you have no choice but to invest in new ones as old vans can cost you much more in the long run in terms of repairs and maintenance. Below are some general costs for P&D vehicles (new):

  • P700-P1200 Gas Step Vans can cost from $50,000 to $65,000
  • P700-P1200 Diesel Step Vans can cost from $60,000 to $75,000
  • Regular vans from $38,000 – $42,000
  • Cutaway Vans from $40,000 to $45,000

If you are investing this much money in a new van, it is extremely important to have FedEx package delivery insurance. If there is any physical or mechanical damage to the van(s), your investment will be protected.




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