Costs Associated with Starting Your Own Trucking Business

ElizabethGeneral Article

Despite the title, it can actually be quite difficult to determine the start up costs that are associated with starting your own trucking business. There are so many factors that vary state to state, including licensing regulations and insurance rates. Potential revenue varies widely too, depending on your location. Before getting too much further in the process you may want to look online at the available local loads for trucks to see what things look like in your area. Generally speaking, however, the trucking business is pretty stable right now and can be incredibly profitable.

Fixed Costs

Fixed costs are costs that are regular business operating costs that are incurred on a monthly basis. Some of these expenses will include monthly truck payments, insurance premiums and payroll. There are also annual fixed costs for things such as permits, licenses and vehicle registration fees.

Variable Costs

Variable costs are non-standard costs that can vary. These expenses can include things like maintenance and repairs, which can be unanticipated if the vehicle needs repair from an accident. Other variable costs can include fuel, lodging and meals.

Vehicle Specific Costs

Because the average 18-wheeler can cost between $130,000 – $180,000 you’ll probably want to lease to own or even rent one just to get you started. Again, you might want to look at a few local loads for trucks listings to see what kind of distances people are requesting. Whether you’re leasing a vehicle or purchasing your own, you will need a lot of insurance. Most insurance providers will require an insurance down payment that can range from $2,000 – $4,800 per vehicle. Some of the other vehicle related costs include Heavy Vehicle Use Tax, which is approximately $200 – $550 and the International Registration Plan which generally costs $500 – $3,000 for apportioned … Read more

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