How do you equip a new trucking company? You’ve just purchased a brand new truck or a used one, you’re ready to make money in the trucking business and you’re ready to invest in good equipment to ensure your business gets the best results. You think you should use your truck leasing deal to finance a truck purchase. But what’s a good compromise between buying a truck and leasing it? The best plan would be to get the best value for the money you’re spending.
Equip A New Trucking Company: Get Started
Here are some tips to help you become a serious truck driver in no time.
Monetize your mileage
The trick to getting the highest utilization rate and highest yield is to maximize your mileage, and that means maximizing the value of your rental miles. It’s also a great way to get around government regulations that limit how much you can charge the customers for miles driven by paying for them through the lease agreement.
The hybrid solution
When you lease a truck, you can buy it at the end of the term. That’s basically the best option with larger trucks because you can lease the first year before buying. With a lease-purchase, you pay for the truck up front and lease the next four or more years, so once the lease has expired, you purchase it for the remaining amount. So renting is the best way to go for some trucks. For smaller trucks, you can purchase outright. It usually costs the same or less than leasing. But don’t buy if you don’t want to.
Get smart by buying a trailer or two
Before you make a truck purchase, consider buying a trailer. You can do it directly from the manufacturer. When leasing, the great deal of the power of a full load trailer is really limited. The truck has to tow it and carry it along. So consider purchasing it on your own, or possibly even renting it.
Get the best equipment
Not just trailers, but everything you need to be a winner in order to make a difference. There is a discernible difference between the newest equipment and the best equipment. Just because something is new doesn’t mean it’s the best available for the job. Do some research before you buy anything. Make sure your trailers, trucks, chains, tires, etc. are well-reviewed and praised by others in your industry. You’ll want to equip a new trucking company with the best hardware you can get so that it lasts. Don’t go with the cheapest or lowest bidder, but don’t buy the newest whizbang products either.
Nothing can guarantee a high value for your truck purchase more than a good rental truck. You can bring a truck there and then leave it parked the next day. When you lease the truck, you usually have to take it out and use it. But if you rent it yourself, you’ll still be able to run it effectively and get some excellent returns.
Used Extra Trucks
No one says you can’t use a truck to earn more money. It’s wise to have a nice used truck for a kick here and there and a newer one to keep on hand for big business transactions.
Get Cash Flow
It’s hard to get any of the above ideas rolling without some cash. Once you’re ready to haul, it’s imperative that you have working capital. Many brokers and vendors often pay for loads on a delay. You’ll receive payment anywhere from 30 to 90 days out after completing the haul. That makes it hard to bootstrap a new company and have the right equipment. With some cash upfront you can make that happen. Let us get the money you need to make that happen.