What You Should Consider When Selecting A Truck And Trailer For Your Business
Apr 16, 2020 11:55
Trucking as a logistics business, or as part of another business as a separate operation has a lot of upfront costs and maintenance planning to consider. What you invest in and how your investment will be managed depends on the frequency of your transportation and volume of your fleet operation, or potentially having multiple uses for your trucks and trailers. One of the options trucking businesses have to weigh is renting or buying because sometimes it does make for a better economic decision to rent, especially if you or your drivers don't need to be on the road all the time. But if you have a good financing option for acquiring a new or recent used truck, buying is a good way to go.
Registering A Trucking Business
Before buying your truck and trailer, you should make sure your business is registered and set up to run trucking. Most trucking businesses will usually register as an LLC, but tax advantages for some states may be better for registering as a different kind of corporation. But it's not just the business itself you need to register; trucks also have to be registered with the DOT, be given special plates and be certified in the Unified Carrier Registration system. Not all states have a UCR program, but since trucking usually involves crossing state lines, it always pays to have it.
Finding The Right Truck And Trailer Combination
Once you've gotten your trucking operation ready to go, you need to figure out what kind of rig or fleet of rigs would get the job done for your business. You also need to be aware of any toxic or hazardous chemicals that you may be transporting because those need to be carried in a DOT approved truck and trailer, or truck and tanker combination with HAZMAT endorsements on your commercial driver's license. But consider the following trailers for various businesses.
If you're going to be transporting other vehicles, or even loading up timber and wood products, a used flatbed trailer for sale could be purchased. Flatbeds are pretty easy to set up, but you do need to take as many extra precautions as possible to secure your cargo on them. Most regular product transportation where normal size boxes and a few that need forklifts to move are taken in dry vans, although moving floor trailers while much more expensive are popular for this task as well. Hopper bottoms and tankers are needed when transporting grainy and liquid substances that have to be loaded into the truck differently.
Getting Financing For Truck Purchases
How can you finance the purchase of a truck? It could be done through your local bank, but there are also online based lenders and alternative capital providers who offer loan products specifically made for truck purchases. Like most regular vehicle and real estate loans, the rig will serve as collateral, but you will still need a solid credit score, and a sizable down payment to make upfront. Note that many lenders will also have requirements stating that you need a minimum amount of years in trucking, and the rig you want to purchase may have to be no older than 10 years and have a solid maintenance report. Like any other business loan, you will need records of your finances so that lenders can determine your eligibility.
The bottom line is there is a lot that will be required of your truck and trailer to get your products shipped or other hauling services accomplished, so you need to be prepared for many costs. That's why you should always buy or rent from a highly reviewed and reputable dealership or rental company that deals in reliable trucks and trailers.
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