Running a standard box truck business requires that you should have reliable and efficient box trucks in your fleet. This is because a box truck is a major thing you need to run a box truck business. Starting a box truck business requires reasonable start-up capital.
At least you should be prepared to purchase a box truck and the average cost of a box truck varies. For example, new light-duty class 2 and 3 box trucks cost between $25,000 and $45,000.
Medium duty class 4 box trucks cost between $35,000 and $50,000, medium-duty class 5 box trucks cost between $45,000 and $70,000 and medium-duty class 6 box trucks cost between $50,000 and $90,000. Yes, there are several ways you can get a fleet for your box truck business, and you don’t have to save up all the monies you need.
In some cases, you might get a fleet for your box truck business without initially paying for it. If you are interested in starting a box truck business but you don’t know how to get a fleet for the business, this article may prove valuable to you.
Ways to Get Fleet for your Box Truck Business
One of the major ways you can get a fleet of box trucks for your business is to outrightly purchase the trucks from an automobile dealer, an automobile garage, or directly from a manufacturer. Please note that if you want to purchase box trucks for your fleet, then ensure that you have saved up a large sum of money.
Some schools of thought have it that it takes at least 15 trucks to make a fleet, so you should be ready to cough out $375,000 for new light-duty class 2 and 3 box trucks.
One of the major challenges entrepreneurs face when starting a new business is the ability to raise the startup capital required for the business. If finance is not part of the challenges confronting you as an entrepreneur, then you can easily purchase your box truck fleet.
Through Truck Financing
Truck financing is perhaps one of the most popular means of building a fleet in the trucking industry. So, if you are looking for ways to get a fleet for your box truck business, you may just want to try out truck financing. Please note that when it comes to truck financing, you are expected to make a down payment of at least 20 percent of a new box truck purchase price.
For used box trucks, you are expected to drop at least 10 percent down. If you can’t afford the recommended amount, then you should negotiate with them to put down as much as you can without draining your savings or emergency funds.
This is how truck financing works, on a $12,000 truck loan, you should be prepared to make a down payment of between $1,200 and $2,400. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.
If you are interested in leveraging truck financing to build a fleet for your box truck company, then you can follow these steps;
- Learn the Language of Lending.
- Know Your Credit Score, and Understand Why It Matters.
- Find a Good Financing Deal.
- Apply for a Truck Loan the Right Way.
- Cautiously Look at Dealership Financing Offers.
- Finalize the Deal.
Direct Partnership with a Box Truck Manufacturing Company
Similar to truck financing for box trucks are entering a direct partnership agreement with box truck manufacturers. One thing about this method is that you must have been able to build a strong personal brand, a brand that can open business doors for the box truck manufacturing company.
When it comes to a direct partnership with a box truck manufacturing company, there may be different terms and conditions. It could be a part-ownership agreement (owning some percentage in your company), it could be a payment plan spread over some time and it could be paid in kind as agreed by both parties.
Partner with Box Truck Owner Operators
When it comes to starting a trucking business, you don’t have to be responsible for the purchase of all the trucks you would need to operate the business. A good example of this is the innovation that Uber brought into our world.
Hence, you can get a fleet for your box truck business by leveraging partnerships with box truck owner-operators. A box truck owner-operator is a truck driver known to move cargo and ensure their delivery using a truck that they own or lease.
Box truck owner-operators are everywhere in the United States and if you have a good commissioning system like Amazon, you will attract some of the hardworking and resilient box truck owner-operators around you.