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CHURCH EXECUTIVE • C H U R C H T R A N S P O R TA T I O N
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Table of Contents DON’T MISS THE BUS: HOW TO BUY THE RIGHT TRANSPORTATION FOR YOUR UNIQUE CHURCH
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Today’s growing churches are seven-day-a-week operations. So, your transportation needs are clear — and immediate. Before you buy, here are a few factors about your unique church that should be considered to determine the best overall vehicle investment. By Mike Jones
SURVEY THE SAFETY LANDSCAPE: 5 CRITICAL FACTORS — AND THEIR IMPACT ON YOUR BUS MINISTRY
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Good bus drivers avoid potholes, speedbumps and potentially dangerous conditions on the road. Church leaders should be just as vigilant about heeding potentially dangerous conditions — for themselves and their precious cargo By Mike Jones
LONG-TERM MAINTENANCE CONSIDERATIONS
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If you’re in the market for a church bus, you really need to think about what happens “down the road” — i.e., in terms of maintenance. Here are six questions you should ask before you buy, and some expert advice. By Mike Jones
FINANCING YOUR CHURCH BUS FLEET: COMMON QUESTIONS
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When it comes to buying a church bus, the first question is always: Buy or lease? Obviously, a church needs to assess its needs and weigh the costs of buying or leasing a bus and what works best for its congregation. But I will say this: Buying a bus outright has its drawbacks, because a large amount of money is taken out of operating expenses. As such, leasing has become a much more popular option in recent years among many churches because it frees up money for ministry! Here are 10 reasons why a lease might work best for your church. By Mike Jones
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C H U R C H T R A N S P O R TA T I O N • CHURCH EXECUTIVE
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Don’t miss the bus How to buy the right transportation for your unique church By Mike Jones Today’s growing churches are seven-day-a-week operations. The ability to transport worshippers to services on Sunday is just one need; churches are also hosting children, youth and seniors well beyond Sunday. So, your transportation needs are clear — and immediate. Before you buy, here are a few factors about your unique church that should be considered to determine the best overall vehicle investment. Church size Even if your church is small, it can obtain a church bus! Churches of all sizes use buses. Usually, it just comes down to where you want to put your ministry dollars. And really, budget can be a factor for any size church. So, look for a dealership that can provide budget-conscious financing or leasing. Leasing a bus is a great way to free up money for ministry and still have a new bus with full manufacturer warranty protection. Generally speaking, the newer the bus, the more reliable it is. However, a slightly used bus can easily fit into your church budget. Church size might also dictate how large a bus your congregation needs, or how many buses — but not always. Some small churches carry large groups of congregants to conferences and evening services. Likewise, some large churches don’t use any transportation at all. Daily, weekly and monthly passengers The number of people a church wants to be able to transport has a lot to do with the size of bus, or number of buses, it will need. In most states, any vehicle that seats 15 or fewer passengers does not require a Commercial Driver’s License, or CDL. A non-CDL bus can make finding drivers much easier for your ministry. A 26-passenger bus is a very popular mid-size bus among churches. It’s usually equipped for longer trips, offering features to add greater comfort. This size of bus isn’t overwhelming to drive, yet it can carry more passengers while being budget-friendly. While buses that seat 32 to 52 passengers are available, many churches find the higher price tag to be more than they want to spend. But, if this size of bus makes the most sense for your ministry, consider a lease. Your church’s needs might change, and this ensures you’re not locked into the bus for the long-term. Service areas — local, regional and national Service is always an important consideration! Although churches generally put minimal miles on a bus, these vehicles still require regular oil changes, tire rotation and brake service. Most service and warranty work can be done at a local Ford or Chevy dealership, since most buses are built on that brand of chassis. Be sure to partner with a bus company that will be your advocate should any service or warranty work be needed. 4
CHURCH EXECUTIVE • C H U R C H T R A N S P O R TA T I O N
Desired options A variety of options can be on a bus or added: LED lighting; standard seat belts; retractable seat belts; dual hand rails at entry; overhead luggage (for small suitcases or backpacks); reading lights; aisle sliders (allows aisle seats to slide into aisle for more room); DVD player with screens that everyone except the driver can see; back-up camera; navigation system; PA system; AM/FM/CD player; trailer hitch; stainless steel wheel inserts. Some dealers (ours among them) make a lot of these options standard on church buses — and even take it a step further. For example, we realized that passengers weren’t closing their windows properly. So, when the bus was parked after use, rain came in the bus and damaged walls and floors. It even allowed birds, bees and wasps to get in and nest! So, we felt it best to spend the extra money for a solid window that eliminates the possibility of leaving the windows open. As an added benefit, we find kids can’t put their arms and hands out the windows. Also available are upgraded seat belts. When not in use, they retract instead of lying on the floor, where people can step on them or get them wet or dirty. Adding these features will add to the cost of the bus, but some dealers have some — or all — added to their stock buses, saving your church some money. What about accessibility? Most buses are easy to access for all ages. Generally, the first step is only about 12 inches high. If you pull up to a curb, the step is even lower. For seniors, dual handrails are helpful. And, most prefer riding in a shuttle bus than in a van, given the ease of entry and room to maneuver. Many churches opt for a bus with a lift for optimal inclusion. This helps individuals using walkers or wheel chairs easily board and de-board. Fuel efficiency Most gas-powered buses get 10 to 12 miles per gallon. We don’t consider alternate fuels a viable solution for the church market yet, cost- and payback-wise, given the comparatively low miles they run. Parking Be sure to plan where the bus will be parked — in a garage or outside. If it’s outside, you’ll want to park the vehicle in a well-lit area that’s as visible as possible from the road. As with everything you do as church executives, good stewardship of funds is a top priority — not only during the transportation selection process, but on a long-term-maintenance basis. Keep these deciding factors in mind before you sign on the dotted line. Mike Jones is National Sales Manager at ChurchBus.com. www.churchbus.com churchexecutive.com
By Mike Jones
Survey the safety landscape 5 critical factors — and their impact on your bus ministry
Good bus drivers avoid potholes, speedbumps and potentially dangerous conditions on the road. Church leaders should be just as vigilant about heeding potentially dangerous conditions — for themselves and their precious cargo.
Factor #1: The number of buses your church operates Simply put, the more buses a church runs, the more time and energy it will need to spend on maintenance. Consequently, there’s a greater chance that maintenance on a particular bus will be missed. Be sure to use a qualified shop or dealership — with trained and certified techs on staff — to maintain your buses. Making sure fluids are changed regularly, that tire tread is in good condition, and that the bus is kept clean and ready to go will head off any problems that might arise due to neglect. Another safety concern related to multiple church buses is the possibility of drivers being less than qualified to operate the vehicles. With several buses in use, the church needs plenty of drivers at the ready. To meet the demand, it could get slack on drivers’ qualifications. Factor #2: CDL credentials In most states, a CDL is not required to operate vehicles with 15 or fewer passengers (including the driver). While this makes a strong case for buses this size, it doesn’t mean drivers shouldn’t have some training on these vehicles. Quite the contrary, in fact. To be on the safe side, some churches require all drivers to have CDL licenses, regardless of vehicle size. While this makes it much tougher to find drivers, several training programs are available. If your bus carries 15 passengers or more, it’s against the law for anyone without a commercial driver’s license, or CDL, to operate it. No getting around it. (NOTE: Some insurance companies have specific requirements for your drivers. Be sure to contact your provider to make sure your bases are covered.) Factor #3: a mixed fleet Operating a variety of church vehicles (buses, vans, cutaways, small buses, large buses) can have an effect on driver safety. This is especially true in the case of vans. churchexecutive.com
For many churches, the “V word” sends up a red flag — and for good reason: vans have been proven to be less safe than buses. While some manufacturers have tried to improve van safety by removing the rear row, a clear relationship exists between a 15-passenger van’s load and its probability of being involved in a rollover accident. According to GuideOne Insurance, if a van has fewer than 10 passengers, it faces a 12.7-percent chance of a rollover. With 10-plus passengers, that probability rises to 35.4 percent. With 16 passengers and beyond, the insurer estimates a 70-percent chance of a rollover! With these figures in mind, buses emerge as a safer option for church use. Assuming all the buses are maintained and licensed drivers are used, operating a mix of small and large buses shouldn’t affect overall safety. What does, however, is parents and parishioners driving their own vans or cars for church outings. This practice brings about numerous safety and insurance / liability issues. Factor #4: driver training According to National Highway Traffic Safety Administration (NHTSA), driver error is a factor in 93 percent of vehicle crashes. Driver training is a step in the right direction. The most common approach — and a great place to start — is to follow the Federal and state guidelines for driver training requirements. Additionally, consider running background checks on drivers. When screening applicants, it’s best to check criminal records, driving records, and the sex offender registry. Many churches come up with their own training classes to make sure drivers are familiar with bus operation. This often involves getting drivers comfortable navigating the vehicle around town before they take congregants on the road. Keep in mind that many insurance companies have a list of training and operating requirements. Contact yours for recommendations. Factor #5: volunteer (vs. staff) drivers Churches of all sizes find themselves in very different positions regarding staff versus parishioner drivers. It’s completely possible that your most gifted drivers are staff members. It’s equally possible they’re church members. Regardless, you put your congregation in good hands when you select drivers who’ve demonstrated an overall respect for safety, a clear driving history, and a love for the people they drive. Carefully consider drivers’ age and experience level. Insurance Institute for Highway Safety shows that drivers under 30 and over 69 are involved in more vehicle crashes than other age groups. Drivers should also do a road test. Your ministry’s vehicles might handle differently than the ones applicants have driven in the past. And remember: whoever drives your bus will need to be on your church’s insurance policy! Generally, providers require a driver’s name and a copy of his or her driver’s license. Finally, when transporting children and teenagers, it’s always a good idea to have more adults onboard than just the bus driver. Crowd control can be a safety factor in these situations. Mike Jones is National Sales Manager at ChurchBus.com. www.churchbus.com
C H U R C H T R A N S P O R TA T I O N • CHURCH EXECUTIVE
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Long-term maintenance considerations By Mike Jones If you’re in the market for a church bus, you really need to think about what happens “down the road” — i.e., in terms of maintenance. Here are six questions you should ask before you buy, and some expert advice. #1: How do the long-term maintenance considerations differ if my church buys a used bus instead of a new bus? One of several advantages to a new bus is that maintenance costs are predictable, for the most part. Regular tire rotations, oil changes, brake pads and alignment are inexpensive and can easily be figured into a budget. A used bus, on the other hand, is unpredictable. Equipment failures can’t be scheduled. For both new and used vehicles, the costs associated with routine maintenance are about $500 to $700 (based on 12,000 miles) per year. However, the cost of repairs due to parts failure on a used bus can easily reach $1,500 to $1,800 per year or more — engine, transmission, A/C system, suspension, brake rotors and calipers, etc. When purchasing a used bus, what might seem like savings and good stewardship on the front end can actually end up costing your church more money in the long run. Converting buses that had perimeter seating (horseshoe-style, like airport parking or hotels) to forward-facing is not advisable, nor should seating capacities — up or down — ever be altered by anyone but the manufacture. #2: Should our church perform bus maintenance ourselves, or should we farm it out? The big question here is whether or not the church has someone available who’s qualified to perform the work. Is there a maintenance person on staff who is trained and can devote the necessary time to maintaining the bus, along with the other equipment? Does this person have current certifications to repair equipment like a bus? If so, then it would be costeffective for the church to perform its own preventative maintenance. If not, for cost and for liability’s sake, heavy-service repairs should be sent to qualified technicians. To this end, it would be wise for your church to develop a partnership with a local service facility. Drivers should always perform a “walk-around inspection” before each use. A checklist of items to inspect includes: • Tires — tread wear and pressure • Fluids — levels and / or any signs of leaks • Belts — Are they tight? Do they show signs of wear? • Hoses — Are they firm when you try to squeeze them? • Glass — Look for chips or cracks that could spread while driving. These documents should then be kept in a safe place with the rest of your church’s vehicle records. Annual inspections are always a good idea and should be done by qualified mechanics. #3: If we outsource our bus maintenance, how do we know who’s the best choice? First, choose the dealer that handles the make of your specific chassis. Manufacturers — Ford, Chevy, IC Bus (International) and so on — will know their own brands better than anyone else. They’ll also be certified to perform any necessary repairs. 6
CHURCH EXECUTIVE • C H U R C H T R A N S P O R TA T I O N
Another option is to find a local service center that has a good reputation. They can handle maintenance and repairs outside of warranty work. With any potential service provider, meet the service manager, tour the facility, and get a feel for whether or not the service provider seems qualified to perform the necessary work. Simply put, choose someone you can trust. View the relationship with the mechanic(s) as one more ministry opportunity. #4: What’s more cost-efficient: our church maintaining the bus ourselves, or procuring outside maintenance? Other than routine maintenance, it’s more cost- efficient to procure outside maintenance. In general, buses and vehicles are equipped with more electronic equipment than ever. A certified technician will have the tools, software and training to diagnose — and properly address — any problem. Having professionals maintaining your vehicle will make it run better and last longer, and it will be safer to operate. If you try to save money by having someone within the church handle significant portions of maintenance (which might push the limits of his or her availability), you can end up compounding problems that could have been avoided. #5: What are the most common risks associated with providing our church bus maintenance? There’s always a risk of “human error,” or even a faulty component. Brakes, suspensions and tires are the most underserviced / overlooked items. If negligence is proven, liability could potentially be traced to whomever performed (or didn’t perform) the service. Obviously, buses weigh quite a bit more than most passenger vehicles. If you don’t have the proper equipment for lifting the bus, something as simple as changing a tire can become a potentially dangerous situation. When a church bus gets a flat tire, we strongly recommend that the proper roadside assistance company be called to handle changing that tire. #6: Who in our church should monitor warranties and scheduled maintenance due dates? Someone at the church should consider a simple electronic program that would notify them of certain maintenance intervals, or maybe a spreadsheet to log all the information. The tasks should be assigned to someone reliable enough to make sure the data is entered promptly and proficiently. When repairs are needed, that person should understand what items are warrantable based on the owner’s manuals. These items should be handled by the chassis dealer (Ford, GM, etc.). If an item isn’t under warranty, many times an independent repair shop can do repairs for less than a dealer. For example, if your bus has a broken exhaust from hitting something in the road, a damaged muffler wouldn’t be warrantable, even though the vehicle is under warranty; rather, this would be considered a road hazard. The Ford dealer might charge $350 for a factory muffler, whereas if you took to a respectable national chain muffler shop, it might replace the muffler — and provide the same warranty — for $175. Mike Jones is National Sales Manager at ChurchBus.com. www.midwesttransit.com churchexecutive.com
Financing your church bus fleet: common questions By Mike Jones When it comes to buying a church bus, the first question is always: Buy or lease? Obviously, a church needs to assess its needs and weigh the costs of buying or leasing a bus and what works best for its congregation. But I will say this: Buying a bus outright has its drawbacks, because a large amount of money is taken out of operating expenses. As such, leasing has become a much more popular option in recent years among many churches because it frees up money for ministry! Here are 10 reasons why a lease might work best for your church. 1) Uncertainty of future needs. Leasing provides a church the chance to use a vehicle for a few years to see if the capacity, mileage, amenities, etc., are what best meets its particular needs. 2) F lexibility in your ministry! Your church’s needs might change in a few years. Pastors come and go. Staff changes. Youth groups grow. The list goes on. Leasing allows a church to reevaluate its transportation needs after the lease term is up — generally, three to five years. 3) Major items are generally covered under warranty for the length of lease. Most manufacturer warranties are 5 years / 60,000 miles on the power train and 3 years / 36,000 miles bumper-to-bumper. 4) The first five years a vehicle is in service is typically when a bus’s maintenance costs are lowest, by a significant margin. The bus is new; therefore, you shouldn’t have any issues. If you do have a problem, the majority of items are under warranty, so you don’t have any money out of pocket. Proper maintenance of the vehicle — including periodic washing — is key to having the bus preform the way it’s designed to perform. 5) Y ears 6-14 of owning / operating a bus can actually cost a church as much (or more) in maintenance and repair costs than when it was making finance payments the first six years while paying off the bus. Also, having a bus break down in your ministry regularly isn’t safe or fun for anyone involved. Time and money spent maintaining a bus could be spent doing ministry. 6) Lower monthly payments to improve cash flow. All churches can use improved cash flow, and the lower monthly payment of a lease is very attractive. 7) N ew equipment is up-to-date with new industry and federal standards. New buses are a safe, reliable way for your congregation to travel. They will want to be comfortable and safe as they travel in your church’s care. 8) B uses are not an investment. They’re a ministry tool — but they don’t increase in value over the years. Many church leaders believe they’ll purchase a bus because they’ll have trade value in eight to 10 years. A monthly payment for a three-year lease is less than half of what the church will pay each month when financing one. Plus, your leased church bus is under warranty the whole time. Laying out less money — and having full warranty — is being a good steward of church funds. 9) The church could lease for two three-year periods (two new buses), and it will cost less than financing a bus — and again, they will be under full warranty. You read that correctly: The church can lease a new bus for three years, and then turn it in for another new bus for three more years, and still pay less than financing the same bus. Additionally, the church has a chance the second time to get a differentsize bus, or something with a wheelchair lift, or whatever fits its needs at the time. churchexecutive.com
This is a new 2016 Ford Starcraft 14-passenger + driver bus priced below $60,000. View details at: midwesttransit.com/auto/new-2016-ford-starcraft-kankakee60901-il/4654987.
10) A five-year lease saves more than $20,000 versus financing. If your church leases for five years, it’s still saving money. And, the power train warranty applies for the full length of the lease term. It’s all about being a good steward of the money God has entrusted to the church. Here are some other vehicle financing questions churches often ask: “Is it better to pay cash?” A church might have the money in savings but might prefer not to deplete the operating funds or savings in case a need arises. However, if a church has enough cash on hand to purchase a bus outright — and still have enough left over in its operating budget to meet the rest of its needs — paying cash for a bus can certainly be a great option. “When securing financing, how can we ensure our financials are in the best possible shape?” Although a church’s financials are important, a lender will be more interested in previous comparable financing and cash balances on hand. If a church has financed items in its past and satisfactorily paid its debts (and the lender reported it), or has significant cash balances (carrying five-digit figures month-to-month), it is more likely to get approvals. Also, the lender might require a church that’s incorporated (the lender can find it in the state’s Secretary of State website) to provide a copy of its by-laws to show legal existence. Many times, churches don’t have any credit history at all because they pay everything in cash. Although it’s a wonderful thing to pay in cash, lenders want to see some credit history. If a church can purchase a few things and pay them off on time, it will build a good credit history for when it needs to get a loan. “What do lenders look for?” • Total annual contributions • Does the church have a mortgage on its property or building? • Size of congregation • History (how long the church has been established) • Although rare, is there a personal guarantor available? “How big of a loan can we afford?” The quick answer is: How much can the church afford if it sees a decrease in contributions? To this end, the amount of cash reserves plays a significant role in determining a church’s credit-worthiness. As they would any time they take on debt, church leaders must sit down, look at the finances and be sure the church is financially stable enough to take on another debt. Mike Jones is National Sales Manager at ChurchBus.com. www.midwesttransit.com C H U R C H T R A N S P O R TA T I O N • CHURCH EXECUTIVE
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