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DOTmed Industry Sector Report: Ambulance Sales & Service

by Sean Ruck, Contributing Editor | January 21, 2009
Buying new is a desirable option for some customers because new vehicles offer cutting-edge technologies and manufacturer warranties.

The exterior of a
Life Star Rescue
ambulance



"New ambulances will meet federal diesel emissions standards and are theoretically greener and more fuel efficient," Van Arnam said. "For example, with Dodge's new Sprinter van, we have people getting double the fuel mileage. We have ambulance providers who spend millions a month on fuel, so getting double the mileage - now that's significant. Also, there is the cost savings on maintenance. The older a vehicle gets, you can just assume that maintenance costs are going to get higher."

When the chassis of a modular ambulance wears out, the body can be remounted onto a new chassis for a cost savings of roughly two-thirds to three-quarters of the price of a new vehicle.

"In remounting, you already have your own box, all of your interior cabinetry, your electrical stuff and oxygen equipment," said Eric Vogl, Vice President of Southeastern Specialty Vehicles, an ambulance remount and refurbishing company in West Jefferson, N.C. "So what we do is put it on a new chassis, hook everything back up, re-paint, re-upholster and basically make it a brand new ambulance. A new ambulance these days is typically over $100,000. A remount is between $65,000 and $85,000, depending on what the customer wants. This cost savings can be very significant. If you need three trucks refurbished, that is going to equate to the cost of a new one."

Remounts can be performed several times throughout the life of an ambulance, depending on the location and use of the vehicle.

"It all depends on the wear and tear," Van Arnam said. "It depends if it's a service that runs 20 calls a day or two calls a week. An ambulance running in New York City is going to be different from an ambulance in rural Montana."
To stay competitive in the remount market, some remounters offer to extend the manufacturer's chassis warranty or offer a warranty of their own. However, depending on the brand of ambulance, a significant cost savings is not always achieved by remounting.

"Quite frankly, there is a difference in the products - some can hold up and be remounted and some cannot," said Kim Elick of Braun Industries. "Look at your ambulance over its five-year or eight-year life cycle. You may pay more up front to buy new, but if your cost of maintenance and cost of fuel is significantly lower over the next few years, then overall, you pay less for that product."