We saw an article come across the internet today about how there are now 9,000 fewer trucking authority permits active now. After we started breathing again, we read further, but one thought keeps coming back: Is it time to expand your trucking business?
Look, we’re just asking. But aren’t you wondering if this isn’t an opportunity for you to grow?
Park Your Truck or Buy Another?
Risk. It’s all about managing risk. Are we willing to take the risk to buy another rig right now?
Especially if it’s a trailer that isn’t already in our yard. But maybe it’s time to expand your trucking business into a market.
If you’re a regional driver, you may know what type of trucking is doing better in your location. Seasonal trucking opportunities or regional developments might give you a consistent income.
A few years ago. a new gas line was going through our part of Ohio. You couldn’t count the number of trucks hauling parts for that project on the Ohio highways. Were those specialty trailers? Some of them were, but most of them were flat beds with wooden blocks to hold the pipes. If you had a flatbed that year in Ohio, you had guaranteed work if you wanted it. If you didn’t, it might have been worth it to rent one.
In a trucking recession, it’s tempting to park your truck. Maybe give up your authority, shut down the business for a while. When rates are so low that it looks like we’re paying for the privilege of hauling freight, it’s a reasonable response. After all, the fewer trucks on the road will force shippers to pay better rates.
Do you want to be on the road when shippers discover they can’t find truckers who’ll pick up their loads for their cheap rates?
Expand Your Trucking Business
We’re not suggesting that you expand your trucking business without doing the research to discover if it’s a risk you can afford to take.
So how do you do that?
- Check the load boards. Get a sense of what a new rig would bring in if you’re buying a new type of trailer.
- Consider renting the trailer instead of buying it to know if it’s a rig you want to drive regularly.
- Examine your finances.
Financing a Vehicle Purchase
Can I afford it? Should I risk it?
How do you get the information you need before you make the decision?
Trucker Stats™ can tell you. When you know all of your expenses, including those annual expenses that we sometimes forget to add in, then you know what you need to bring in. With a look at the load boards, you can get a good idea of what your new investment may bring in.
We know that this is a popular choice for many truckers to buy equipment in a Lease Purchase contract.
We would like you to reconsider that if you’re expanding your trucking business. If you already have a rig, you may have better options.
Take a look at vehicle and equipment financing options on the internet. There are some options for you that may look scary, but in fact, might save you money down the road. We don’t have any to recommend, but even your bank might be a good option. Take the time to explore your options.
And good luck! Let us know how you expand your trucking business!