The transportation industry has grown rapidly over the past few years. This tremendous growth also opens up the opportunity of earning passively. I know that you are interested in earning passive income from the trucking business.
So, in this article we will discuss various ways of earning passively by investing in a truck business. So a lot to know, a lot to discuss, and without wasting any time let us now begin.
How to arrange a truck?
You need to either buy or lease a semi-truck (semi-truck means a truck with a trailer which is best for transporting goods) for earning passively from the trucking business. But first of all you need to understand the meaning of lease. Lease simply means renting for a long period of time. Since you rent for a longer time, the expenditure on lease is less.If you do not have money for buying a semi-truck then lease is the only option left.
On the other hand, if you have money then I still recommend you to lease multiple trucks instead of buying one semi-truck because leasing multiple trucks is less risky, cost effective and will also increase your income which is again very good for your life.
Why Trucking Is a Good Source of Earning
As a truck owner, you have to carefully assess how much it costs to deliver a load. You should be aware of your variable and fixed costs and be sure to keep accurate accounting records. You should also keep track of every dollar you spend, as you don’t want to be cheated out of your profit. With some work, you can even earn more passively with trucking. Besides, this business can provide you with a steady stream of income.
While trucking may be a good source of earning, you should be aware that it requires a lot of hard work and dedication. If you have the right skills and attitude, you can earn a lot of money. The trucking business can be a lucrative option for many people. You should be able to choose from a variety of services. When you’re a newbie, you probably can’t afford to operate more than one type of business. Nevertheless, research the market and see what you can’t afford to offer.
Should You Buy a Driverless Truck?
If you’re a commercial driver, you might be wondering whether or not you should buy a driverless truck. The idea behind them sounds exciting, but you’d be missing out on many benefits. First of all, truckers aren’t likely to text or drink while driving. They’re also not going to be tempted to speed. Additionally, driverless trucks are likely to be far safer and save you money on gas. But, the fact remains that there’s a profit motive in this technology, and you might not want to get involved in it right away.
The benefits of driverless trucks are obvious, but they’re not so obvious. Self-driving trucks are more efficient than human drivers. For example, they’ll save fuel and reduce emissions. Besides saving money, they’ll be safer. They will also save money, thanks to the fact that they’ll drive themselves instead of humans. Despite the benefits, some people worry about job displacement.
As the technology becomes more advanced, drivers can also use these new features to improve safety. This is especially true for the drivers who use autonomous trucks in their business. Moreover, they can easily interact with other vehicles, such as cars. That means the driverless truck isn’t really a robot. Hence, a driverless truck doesn’t automatically mean it can’t handle mechanical problems, but a driver in the cab can handle such issues.
Among the other advantages of a driverless truck is that it doesn’t cause distractions. It can be safer than a driver, because the trucks themselves will drive themselves. It isn’t possible to be distracted while driving. And it won’t cost a fortune to buy a driverless truck. But it will be cheaper for you. In the meantime, you may want to wait for a few more years.
While the benefits of driverless trucks are undoubtedly great, the risks are also significant. In the long haul, the biggest cost of trucking is labor. It’s estimated that only 9% of all highway fatalities involve trucks. This means that autonomous trucking will be more economical. So, should you buy a driverless truck? If so, which kind? After all, why not? And why would you?
Which semi-truck to lease
You must consider some factors before leasing a truck which are:
#1 Area where you will do truck business
If you start a business near an interstate transportation hub then you must prefer leasing big trucks because people rent big trucks for a longer duration and also rental income of big semi-trucks is quite high as compared to small trucks and since you live near interstate transportation hub, so people will prefer to lease big trucks for reducing average cost.
On the other hand,if you live in the city area then you should lease small trucks because people in the city area use small trucks only when they switch their home. So small truck businesses in the city area are very profitable.
#2 Funds you need to start a truck business
If you have enough funds then you can easily lease big trucks but if you have less funds then you can only lease small trucks and have to start your business in the city area. So funds requirement is also a considerable point.
#3 Legal obligations to fulfill
In some states, there are very tight legal obligations which you need to fulfill before leasing trucks. So in that case you need to wisely calculate and manage all legal obligations.
#4 Mileage and other factors
It is obvious that everyone will prefer a good mileage truck, so properly check truck mileage and average before leasing it.
Apart from that there are several other factors like cost of servicing, average lifespan etc which you need to consider before starting a truck business.
What is the best time to lease the truck?
The end of the financial year or the last week of March is the best time to lease a truck because truck dealers have some specific targets which they have to complete every year. So to complete their targets they will give trucks on lease to you at a very low price, which is going to be the best time for you to lease a truck.
But for that you need to find a loss making truck leasing business and you can easily find that by searching on the internet.
Ways of earning passively from trucking industry
Now let us discuss the best ways of earning passively from trucking business which are as follows:
#1 Give your truck on rent
First way of earning passively is very simple. You just need to give the truck on rent to someone and earn from it.
Before renting your truck, always follow all the legal obligations and take some mortgage from the customer which will help in case of the worst case scenario.
#2 Advertise in your truck
You can easily make a lot of money by just advertising different brands on your trucks. You can sign deals with various brands where they pay you a specific amount for pasting their poster on your truck for a specific period of time.
But for that your truck should be on rent for the majority of the time, otherwise no brand will approach you for advertising.
#3 Lease the truck and rent in higher amount
If you are a good negotiator then you can easily save a lot of money in leasing. After that you can lease the already leased semi-truck to the other person for a higher amount. Since leasing is done for a long period of time, you can easily earn money passively for a long time.
For example Suppose you lease a truck for about $3,000 per year for five years. So your leasing cost is about $15,000 for five years. Now if you are a good negotiator then you can easily give the same semi-truck on lease to someone for about $4,000 per year for five years.
So in this case your revenue is about $20,000 and you made a profit of about $5,000 by simply using your good negotiation skills and leasing the same semi-truck to someone at a higher price.
#4 Invest in trucking industry stocks
At last you can earn passively by investing in semi-truck company stocks. Stock market is one of the best ways of making money passively and you can easily make a return of about 20% a year plus dividend if you invest in the right truck business.
#5 Start a truck warehousing business
You can also earn passively by investing in the truck warehousing business. Truck warehousing simply means a place specifically for truck drivers where they will get all the spare parts and tools for their trucks.
You can also provide sleeping facilities to drivers and earns from it. This facility also helps you to gain more customers becuase most of the times truck drivers need more time to fit spare parts in their truck so they prefer staying at a place and continue its repair the very next day.
You simply need to employ a person for managing the warehouse and you can earn a lot of money from it.
Now comes the time to summarise the text. Passive income is very necessary for attaining financial independence in life and anyone can earn passive income from businesses, real estate, franchise businesses and trucking business. You can earn passively with trucking investments from renting, advertising, stock market, warehousing and leasing.
I personally recommend you to a truck renting business because it is most profitable.
At last be patient if you want to achieve success in the truck business. With this note, let us end this article and as always God Bless You All.
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Frequently Asked Questions
What is a semi-truck?
A semi-truck means a truck with a trailer. A semi-truck is best for transporting heavy items.
Should I lease or buy a truck for business?
Should I lease or buy a truck for business?
You should always prefer to lease a truck instead of buying it because you can lease many trucks at a time and earn from all of them at a time.
What are the ways of earning passively from trucking?
You can earn passively from trucking business by renting, leasing,warehousing, stock market and advertising.