December 15, 2014

Adding Up The Costs of a Car Transport

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When you are deciding whether or not to commercially ship your vehicle, you are bound to have a lot of questions. One of your biggest questions likely concerns the price of transporting your car. To arrive at their prices, shipping companies must balance a number of costs including the actual costs required to ship your vehicle as well as any overhead costs required to run the shipping company. Every transporter wants to offer competitive prices while still covering their own costs. To arrive at their bottom line, they take the following costs into consideration:

Truck Payments: Tractor-trailers don’t run cheaply and a shipping company must factor their payments into their prices. A brand new rig can cost upwards of $150,000. These are generally paid off in monthly installments that shipping companies attempt to recoup through their prices. The more business a company does, the more it can spread these costs out.

Truck Maintenance: Shipping trucks take a lot of abuse. Every year, a truck and trailer can expect to log tens of thousands of miles on U.S. roads and highways. All this mileage means maintenance. A well maintained truck and trailer are safe, more efficient, and likely to enjoy a longer lifespan. Responsible transport companies perform regular maintenance, including tune-ups, oil changes, tire replacements and rotations. Additionally, trucks occasionally require more costly repairs in order to remain operational.

Fuel: Tractor-trailers are known for many things, but great gas mileage is not one of them. Semi trucks weighted down with a full load get approximately five miles per gallon, which means they need to be refueled regularly. Keeping a fleet of transport vehicles on the road requires a big cost at the pump.

Insurance: Federal regulations require that commercial transporters carry insurance on their vehicles. This insurance must not only cover the cost of the truck and trailer, but also any vehicles it is shipping in the event of an accident or some other problem. For car shippers, this can be a costly insurance policy.

Truck Drivers’ Salaries and Benefits: In addition to covering the costs of its vehicles, shipping companies must also compensate their drivers. Shipping companies hoping to attract excellent drivers with strong driving records must pay them competitive rates. Many transport companies also offer their drivers benefits like health insurance.

Overhead Costs: Beyond the actual costs of keeping its trucks on the road, a shipping company must also cover its overhead costs. These expenses may include office or warehouse space, marketing, staffing, and more.

It takes a lot to operate a safe and efficient car transport company. While companies do their best to offer their customers a competitive bottom line, they must also be sure their own expenses are covered. Fortunately, commercial car transportation still remains one of the most effective and simple ways to move your vehicle from state to state.