How to Buy a Non-Emergency Medical Transport (NEMT) Van: A Step-by-Step Guide

Once you make a decision to start the non-emergency medical transportation business, there will be multiple decisions to make. In this article, we will provide you with a comprehensive, step-by-step guide on how to go through the most important step at the inception of your business - buying an NEMT vehicle.

We have condensed this process into a clear instruction manual with tips about government guidelines and requirements, answers on how to match your ambitions with the needs of your business, and also provided a list of vehicles that you should consider.

So let’s make sure that your introduction to the NEMT industry goes as smoothly as possible!

Contents:

• Step 1. Decide: What Is It That You Really Need? NEMT Requirements and Business Ambitions
• Step 2. Count: What NEMT Vehicles Can You Afford? Cash, Financing or Leasing
• Step 3. Do Your Research: Manufacturers and Specific Models of Medical Transport Vans
• Step 4. Make a Choice: New or Used?
• Step 5. Pay Attention: Other Things to Consider
• Step 6. Go Shopping: Request Multiple Quotes, Test Drive, and Do Professional Inspections
• Step 7. Finalize the Purchase and Make Customizations to Your NEMT Vehicle
• Bottomline: NEMT Business Thrives on Good Accessible Vans

Step 1. Decide: What Is It That You Really Need? NEMT Requirements and Business Ambitions

Long before you actually proceed to selecting a specific passenger car model or a van for your medical transportation company, you will have to do some research and determine your personal needs.

Make a decision: what is the NEMT niche that you would like to operate in? Are you aiming to drive a single minivan, or would you like to build a robust fleet of ADA-compliant full-size vans with the ability to transport stretcher-bound passengers?

Additionally, familiarize yourself with the national, state, and local regulations that dictate the specific requirements for a non-emergency medical transport vehicle.

We are helping you answer these questions in the article How to Find a Perfect Vehicle for NEMT: Requirements and Factors to Consider.

Step 2. Count: What NEMT Vehicles Can You Afford? Cash, Financing or Leasing

It goes without saying that any purchase starts with counting the money you have left in your bank account. Your initial investment will have to be spread thin between obtaining the required qualifications, licenses, and actual equipment. Since the NEMT vehicle is by far the major expense on this list, this decision can make or break your enterprise.

Do not pour in all of the resources in a medical transport van that you cannot afford, and preferably have some funds in reserve for fuel, maintenance, marketing, accounting, and other day-to-day expenses before the first payment checks start to clear.

Anyone who has ever bought a car should be familiar with these payment options. All of them have benefits and downsides for a newly established medical transportation business.

Paying with cash is the most obvious choice, but it will require you to have some in your stash. This method of payment is the most predictable. You will own the vehicle outright and won’t have to accept the unfavorable financing terms and mental pressure that come with it.

By choosing to finance the medical vehicle, you will be exposing yourself to a higher amount of risk and the constant pressure of regular payments. At the same time, you do not need a large amount of money for an initial payment. You will be able to acquire a better, newer, and more reliable car that can potentially enable future savings. Dealerships would usually offer higher interest rates and less favorable conditions, so shop around and consider seeking financing options at your local bank or credit union.

If you do not have enough savings or aren’t ready to commit to a long-term financing deal, there are also leasing or renting options. Less cash is required at the drive-off. Your monthly payments are lower. You can get a new vehicle every couple of years and won’t have to worry about the future sale of the previous one. There is always an option to buy out the car once the lease expires.

Step 3. Do Your Research: Manufacturers and Specific Models of Medical Transport Vans

According to our latest estimates, there are about fifteen accessible vans, that are often chosen by carriers for their non-emergency medical transportation fleets. Technically, each one of the NEMT vans for sale can do the job, so the actual purchase of a specific model will come down to your personal preferences, the availability of the vehicle within your area, and your budget.

We have listed all of these buying options and created a comparison table in the article Best Vehicles for NEMT: Top-Selling Models with Prices and Specifications.

Step 4. Make a Choice: New or Used?

Pros of Buying New: If you are ready to commit to growing your NEMT business and possess the necessary financial resources, then it is a no-brainer - go for the newest NEMT vehicle possible. During the first years of service, such a vehicle will be covered by the manufacturer’s warranty. The newer the vehicle, the less it is likely to break down, and the insurance price is much lower. You will have access to the latest automotive technology and comforts. These include backup cameras, active safety systems, and powertrains with superior fuel efficiency. Zero-mileage non-emergency medical transport vans will have fresh cabins and better resale value. All things considered, your out-of-service hours and expenditures will be minimal, and passengers will be more satisfied.

Cons of Buying New: Much higher initial price, significant depreciation after the first few years on the road, possible recalls.

Why buy used? An obvious answer is to save money. Moreover, there is a nearly unlimited supply of used vehicles, and they will depreciate much slower.

Cons of Buying Used: Possibly unreliable vehicle history, more frequent breakdowns, less efficient engines, absence of modern tech, limited/no warranty.

Step 5. Pay Attention: Other Things to Consider

Newly purchased vehicles for your NEMT fleet are likely to remain in service for years to come, so it is important to look into the future. Always try to buy vehicles that have high reliability and resaleability ratings. You must consult with professionals and gather feedback from other owners by visiting such platforms as JD Power, Consumer Reports, and Kelley Blue Book.

Consider going for a vehicle that historically has lower maintenance and repair costs. Make certain that there is no shortage of good workshops in your area that specialize in your particular vehicle.

On average, fuel expenses can range from 20% to 40% of the total operating costs for an NEMT service. Consequently, fuel efficiency directly correlates with higher profits for your enterprise. Strive to own transport vans with the highest MPG ratings.

Passenger’s and driver’s comfort, amenities, and good exterior looks of the vehicle may not seem as important as the previous factors. However, each vehicle is the face of an non-emergency medical transportation business, so you should aspire to provide your employees and clients with the best vehicles.

Once your operation outgrows a single vehicle, it makes sense to think about the fleet homologation. Stick to a specific car brand and model. The entire garage will be serviced in one place. Cars can serve as donors for parts for one another.

Step 6. Go Shopping: Request Multiple Quotes, Test Drive, and Do Professional Inspections

Of course, you can walk into a dealership and drive out behind the wheel of an ideal NEMT vehicle, but is that the best course of action? We would recommend patience. According to the article from InvestorPlace, there is an oversupply of 5 million cars, which could lead to a possible price decline or even a market crash. Car dealerships need you as a buyer, so do not make their jobs too easy.

Request multiple quotes from dealerships within and outside your area. Account for the total cost, including taxes, delivery fees, and any extra charges. Compare each quote, ask for additional bonuses, and make dealerships compete for your business. Go on multiple test drives and demand professional inspections prior to making any downpayments.

Saving money is essential, so throw in low-price anchors and haggle away!

Step 7. Finalize the Purchase and Make Customizations to Your NEMT Vehicle

Once you settle on the final price, go over the terms of the contract and warranty. Choose the payment method and make a deposit. The next step would be to schedule the delivery or pickup of the vehicle and proceed to registering, insuring, and licensing. 

After you finally park your new NEMT van in your garage, the job ain’t over. It is beneficial to expand the accessibility and capabilities of the vehicle with additional equipment. By installing rear-entry access, ramps, wheelchair lifts and/or a stretcher group onto your van, you can significantly increase the number of eligible contracts.

Bottomline: NEMT Business Thrives on Good Accessible Vans

There are just a few decisions throughout your NEMT journey that can compete in importance with the selection of vehicles for your fleet. By following the instructions from this buying guide, you will minimize the possible mistakes and shall obtain the best wheelchair vans to outmaneuver the competition.

If you want to stay ahead of the curve, you should also consider supercharging your NEMT operation with the best routing, scheduling, and billing software for non-emergency medical transportation developed by RouteGenie. Request a professional demo!