Uncertainty with Washington: Stretching Your Fleet Dollars by Refurbishing and Buying Used Buses
How have recent changes in Washington (tariffs, federal funding shifts, etc.) impacted transit agency decisions or purchasing behavior?
As we move to the middle of calendar year 2025, we find the landscape for the public transportation sector in the US and Canada is as dynamic as we have seen in recent memory. The stability of federal funding for public transportation under the new Republican administration is still unfolding with some degree of uncertainty including the level of funding support for zero emission buses. This is combined with budget and fiscal challenges for virtually every transit agency – or fiscal cliffs – that will need to be navigated in the coming few years. Layered on top of this is the recent activity to downsize the federal government with an unknown number of staff taking early retirement or buyouts and whether there will be enough staff (particularly at the DOT and FTA) to administer the various programs that fund public transportation. Layered yet again is the issue of the applicability of tariffs that have been a revolving door of on again/off again and how these tariffs will impact the cost of rolling stock and other equipment transit agencies procure.
In May of this year at the APTA Legislative Conference, DOT Secretary Sean Duffy delivered his message to the attendees, which from a very high level included the following messages. The DOT will fund public transportation however we expect you to use the money to operate efficiently, safely and securely and at a high-quality standard. Reading between the lines you can conclude that transit agencies will need to deliver on a ROI level; they need to ensure that their systems are safe from crime, driver attacks, fare evasion and the homeless; that their systems are free from graffiti and litter and that funding for zero emission equipment may be somewhat selective. As recent as May 30, the Trump Administration released its FY2026 budget request of $21.2 billion for public transit in FY 2026 which includes a $310 million (1.5 percent) increase from the FY 2025 enacted level. The request is $1.0 billion (-4.7 percent) less than the FY 2026 IIJA authorized levels, however, is still a positive light given the other goings-on in Washington.
With the above background, the other dynamic item for rolling stock (particularly buses) is the notion of zero emission plans and mandates. As transit agencies have rolled out their recently delivered battery electric buses over the past few years, they have found unanticipated operational challenges including range issues, charging times and costs being much different in practice than in theory. As a result, several agencies are either rethinking or rolling back their zero emission mandates.
As a result of all this churn, transit agencies have had to rethink their overall fleet strategies to ensure they are delivering on-time, safe and effective service to their riders. The potential exists for a slowing of zero emission bus purchases in favor of more traditional powertrain choices such as diesel, CNG and hybrid purchases and consideration of used bus options and refurbishments to maximize available dollars and return on investment for available capital funds.
From our perspective at CCW, a strategy that includes refurbishing existing buses or purchasing pre-owned transit buses are ideal complementary fleet strategies that can extend the life of your current buses or augment your fleet to ensure that service is delivered to your riders meeting your operational objectives.
What would you say to a transit agency on the fence about refurbishing or buying used buses during these uncertain times?
Bus refurbishment and buying used buses are both part of a sensible fleet strategy that complements new bus purchases and assists in times of uncertainty and churn as noted above in our comments regarding funding. Refurbishing existing equipment with updated powertrains and current customer amenities such as seating, destination signs, flooring and graphics extends the life of an existing fleet for an additional 8-10 years. The cost of this work is at a fraction of a new bus cost and can be delivered in a few months vs. years. The key to making this part of a fleet strategy is to identify the percentage or quantity of an agency’s fleet that would fit into this bucket.
Further, through effective marketing, agencies can promote the idea of a “new green” with refurbished buses in that they are recycling equipment to be as green as possible with limited funding.
Where agencies are looking to add equipment quickly and well in advance of new bus purchases, adding pre-owned transit buses is the solution. Buses can be made available in as early as 90 days complete with all systems operational, a new coat of white paint and DOT ready. Buses are available in virtually every length and powertrain combination to meet the needs of transit agencies.
What are the key financial advantages of fleet refurbishment over purchasing new buses?
Bus refurbishing can be accomplished at half the price and in half the time as new buses. Typical pricing levels for a full bus refurbishment are in the range of $350,000-$400,000 per bus which includes fully updated powertrain, suspension, brakes, interiors, electronics, HVAC, etc. With new buses selling for $700,000 or more per unit for a diesel bus this makes the cost of a refurbishment extremely cost effective and attractive. More scaled-down refurbishment options exist as well to bring the pricing down to 50% of what is noted above to fit agency budgets. Further, delivery of a fully refurbished bus can be achieved in approximately 7-9 months whereas new bus deliveries are 18-24 months or more. This makes refurbishing being achieved in half the time and half the cost of a new bus.
What sets CCW apart in the refurbishing or used fleet space compared to competitors?
CCW is the most experienced company in the industry providing refurbishing expertise and pre-owned sales to the public transportation market. The company has been in business for over 38 years and has delivered thousands of pre-owned and refurbished buses to customers across the country. Our level of expertise, attention to detail, knowledge base and project management skills are unmatched. This provides a level of trust and comfort to transit agencies knowing their project will be delivered on time, on budget and at the highest level of quality.
