This trailer is having its damaged wall replaced. A repair shop is a good asset to look for in a trailer dealer.
The tractor is more complex and generates more emotion, but right behind it is the equipment that contains the real source of your income: the trailer. Whether to buy a trailer and, if so, specifying the right kind are two of the most important business decisions you’ll make.
A trailer is an asset that can be key to your profitability. Independents understand that; 83 percent own at least one trailer, according to the 2004 Overdrive Owner-Operator Behavior Report. Among leased operators, two in five own a trailer.
For independents, a trailer is often a necessity. For a leased operator, it’s a much riskier investment.
“We discourage the 20,000 owner-operators we deal with from buying a trailer,” says Todd Amen of American Truck Business Services, whose clients are mostly leased. A trailer can limit productivity, Amen says.
“Large fleets run 1.3 to 2.1 trailers per tractor, on average,” Amen says. “If you lease to a fleet, you can drop and hook, and you don’t sit. In fact, many fleets won’t let you bring a trailer of your own to haul their loads.”
Owning a trailer reduces your flexibility, especially if it’s a dry van, says Chris Brady of Commercial Motor Vehicle Consulting. If you lose too many miles because you can’t keep moving, this cuts rapidly into any additional profit. On the positive side, you can depreciate the equipment on your income tax during its first years, and a well-maintained trailer adds equity to your business that can be sold at some point.
