09/19/2024
Glider Kits – Making old Trucks New
First time that I heard the term “Glider Kits”, I thought it was in reference to flying machines, not trucks.
Hang gliding and motorized gliders were the first things to come to mind. Engines from commercial trucks and even some parts themselves can be heavier than most simple power gliders that I know of.
Also picturing a heavy duty diesel engine powering a glider in the air was pretty funny.
Then I learned that it has a different meaning in reference to the trucking/automotive industry.
“Glider Kit Built Truck” – New trucks/tractors that are built using 2 or more of the key components from an older truck such as transmission, rear axle, or engine. These components would be “donated” by the purchaser from a donor truck.
A remanufactured engine may be used, but the engine would have to be the same year or newer. Besides the donated parts from an older truck, glider kits include new cab, dashboard assembly, new front axle assembly, front wheels & frame along with many other new commercial truck parts.
As company fleet vehicles get older, the cost of constantly repairing older trucks and replacing the commercial truck parts throughout the year can become expensive. The cost of purchasing a new truck can influence how long a company tries to continue repairing their aging trucks.
Here are some advantages of purchasing glider kits:
1.) Completed Glider Kits (purchase price, labor (build), parts) must be 75% or less than the cost of a new vehicle. This also referenced as the “Safe Harbor Rule”.
2.) Gliders can be sold without the 12% Federal Excise Tax, as minimum of 2 major components are being supplied by the customer and used in the build. The IRS has hinted that changes to this may occur and you should look into Ruling 91-27 on the IRS website – www.irs.gov
3.) Full factory backing with all new components, 1 year/100,000 mile warranty is standard, with optional extended warranties. Full engine warranties may vary by engine manufacturer.
4.) New Truck “financing rates” – often the value of the older components that are ‘donated’ for the build can be used against the down payment of the purchase of a Glider Kit.
During my research, I came across an interesting question. Will the glider kit-built truck be considered “new” or “used”? Glider kits can be certified as if they were new, given a new model year & VIN, which are deductible and would depreciate as a new asset.
The National Highway Traffic Safety Administration (NHTSA) regulates to be considered “Used”, a truck completed with both new & used commercial truck parts, including new cab (such as a glider kit) must incorporate a used engine, used drivetrain and used rear axle – and at least two of these components must come from the same “donor” truck. If the build meets these requirements and maintains a “used truck” identity, then no certification labeling is required.
Otherwise the truck is considered “new” which means documents need to be filled out for the builder to certify the truck in its final stage.
If you are tired of constantly repairing your truck and replacing varying commercial truck parts just to keep your rig running, then maybe a “Glider Kit Built Truck” is something worth looking into.
