Truck Purchase or Lease: The biggest upfront expense is typically the cost of purchasing or leasing a truck. The price of a commercial truck can range from tens of thousands to hundreds of thousands of dollars, depending on whether you buy new or used and the type of truck you need.
Operating Authority: You’ll need to obtain operating authority from the Federal Motor Carrier Safety Administration (FMCSA). The application fee for getting a Motor Carrier (MC) Number can be several hundred dollars.
Insurance: Trucking insurance is essential and can be costly, depending on various factors such as the type of cargo you’ll be hauling, the distance you’ll be covering, your driving record, and more.
ELD Devices: To comply with the ELD mandate, you’ll need to purchase Electronic Logging Devices for your trucks. The cost per device can vary, but you can expect to spend a few hundred to a few thousand dollars per truck, depending on the type and features of the ELD system you choose.
Maintenance and Repairs: Trucks require regular maintenance to keep them in good working condition. Maintenance costs can vary based on the age and condition of the truck.
Fuel Costs: Fuel expenses will be a significant ongoing cost for your trucking business.
Taxes and Licensing: There will be various taxes and licensing fees associated with running a trucking business.
Driver Wages: If you’re not driving the trucks yourself, you’ll need to budget for driver wages.
Office Space and Staff: If you need office space and administrative staff, those costs will also need to be factored in.
Keep in mind that the costs mentioned above are general estimates and can vary based on your location, the size of your operation, and other factors. It’s essential to create a detailed business plan to assess your specific financial needs accurately.
Before making any decisions, I recommend conducting thorough research and consulting with experts or experienced individuals in the trucking industry to get a more up-to-date and accurate understanding of the costs involved in starting a trucking business and complying with the ELD mandate in 2023.