Costs Associated with Starting Your Own Trucking Business

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 license plates per each truck.

Even though costs can vary due to a number of reasons, business experts estimate that a new trucking business can be started for an initial investment of around $20,000.



Related Posts

Hydroponic Business and Success Tips

The hydroponic business is one type of plant business today. The hydroponic business is currently a profitable business. There are various advantages possessed by this plant so…

The benefits of wealthcare

Are you one of the many who struggle to keep their finances in check? Are you looking for a streamlined way to manage your money and create…

The Advantages of Hiring a Financial Planner

There are many advantages to hiring a financial planner. Not only does a planner know how to handle your money, but they can also help you plan…

How to trade CFDs in Singapore effectively

CFD trading comprises a high level of risk but can be very rewarding if done correctly. Traders wager on the direction that the price of an asset…

Things to Avoid When Starting a Business

Compared to previous years, starting a business is now easier to do. By utilizing a smartphone and a stable internet connection, for example, anyone can use the…

Why You Should Be Using a 6x6x10 Powder Coating Oven

Powder coating is an essential part of many manufacturing processes. The process of powder coating involves spraying the surface of a product with a thin layer of…