Moving trucks are shared, meaning that people use them to move from one location to another. Most companies that offer these services charge very high rates to their clients.
But are these trucks worth their steep price tags? Here’s what I’ve discovered about why moving trucks are so expensive!
Why Are Moving Trucks So Expensive?
1. Demand Is At An All-Time High
Demand is relatively strong for moving trucks, particularly when people are most active in the summer months.
Further, June is considered the busiest month for moving because this is when college students start packing and moving into dorms and student housing.
Additionally, storage facilities are doing well right now; because these services are so closely linked, it stands to reason that their fees will rise simultaneously.
In anticipation, moving truck companies are likely to follow.
2. Heavy Highway Vehicle Use Tax
While taxes can feel like a burden, they are necessary for transporting companies.
That said, this tax is known as the Heavy Highway Vehicle Use Tax, and it is used to help fund highway repairs, maintenance, and new construction.
Moreover, all registered truck owners-operators who own or use vehicles or trailers weighing 55,000 pounds must pay the tax once a year.
Also, truck operators declared this as a massive tariff that would severely impact the ability of transportation truck companies to operate profitably.
For all this, consumers are expected to pay the price.
3. Cost Of Living Is Very High
With all of the turbulence over the last few years, there is only one inevitable outcome: increasing living costs.
That said, people feel the pinch at the petrol pump, the supermarket, on their electricity bills, and in almost every other aspect of their lives.
Furthermore, many people are purchasing emergency rations and long-term food storage.
Because everyone needs to eat, rising food prices indicate higher overall expenses as service providers, labor, and manufacturers raise their rates to keep up.
If food prices rise, so will the cost of everything else, and there’s no exemption for moving truck providers.
4. Extra Mileage
According to move.org, the average cost of renting a moving truck is $1,780 per day.
Also, some rental companies charge extra if you exceed your trip’s allotted mileage.
Further, if you need to take a detour along the route, the additional mileage can add up – not to mention the extra fuel.
So, if you’re going on a long-distance move, this will be an even bigger problem because the more miles that get racked up, the more expensive it becomes.
5. Fuel Prices Are Skyrocketing
Gas prices have been increasing, and this trend does not appear to be changing anytime soon.
Further, the price of gasoline is unlikely to substantially impact your moving costs if you are moving across town. On the other hand, moving across state lines will significantly affect pricing.
Also, it is best to relocate when petrol prices are typically higher during the summer. However, moving during the cooler months may lower gas bills.
Still, this fee is entirely outside anyone’s control, including moving truck providers.
6. Pandemic’s Long-Term Effects
Fear and restrictions linked with the Coronavirus pandemic are subsiding and are expected to persist.
Furthermore, the home’s value was one of the most profound repercussions of the epidemic.
With that, people discovered that shifting and transferring from one state to another was the most cost-effective option.
Therefore, because mortgage rates are low, the increase in the number of people purchasing homes is projected to continue.
Overall, moving truck firms have the advantage of starting to raise their rates as the real estate business struggles to keep up with demand due to the market’s strength.
7. Insurance Costs Are Rising
Insurance companies typically boost rates at the start of summer, but like everyone else, they attempt to recoup some of their losses this year.
Additionally, recent gains have fueled optimism for the end of the lockdowns, as more people are expected to hit the roadways.
When renting a moving vehicle, you must pay for insurance upfront or be reimbursed.
Also, keep in mind that moving truck providers are not interested in paying any premiums that they can get you to pay.
So, it is best to assume that when insurance rates rise, so do transport rental charges.
8. Demand For Migration
Migration is a huge part of life in America, and it’s only getting more popular.
So, as more people move into cities for employment opportunities, more moving companies pop up to accommodate them.
That said, these are due to a variety of reasons, including the rising cost of living in some areas and an increase in the number of people who are relocating for work.
Also, continuous demand signifies that moving company providers can charge upscale per truck rental.
Therefore, the strike for migration is a global phenomenon—and people are being priced out of their homes.
9. Tolls & Parking Fees
Since most moving companies use toll roads or public highways to transport goods from one place to another, their clients are paying fancy high than before for the same service.
Additionally, parking is a necessity for this kind of service, and these fees will depend on where you need to park and how long it takes to load your vehicle with all of your stuff.
Further, it doesn’t matter whether you’re paying by the mile or by the hour.
That said, if there are toll and parking fees involved in your move, it will cost more than when you started looking at moving companies.
10. Limited Resources
Because most people don’t use a moving truck all year, there aren’t many options to rent out their vehicles when they’re not in use.
Also, many businesses impose restrictions on renting out their trucks, such as truck driver shortages due to early retirement and skill gaps.
Lastly, renting a moving truck consumes space that could have been used by someone else, implying that everyone pays extra for a limited number of trucks.
11. Delays In Delivery
Delivery delays caused by bad weather can increase costs associated with moving vehicles.
For example, if you need your truck by a specific time, but it is delayed due to inclement weather, you have to pay extra money to park it until the weather improves.
When stormy weather strikes, it affects customers by increasing the costs of drivers who cannot work due to storms, extreme heat, or cold.
Above all, it will be a problem for people who have not saved enough money for their transfer and may not be able to afford such a delay.
To know more, you can also read our posts on why mobile homes are so expensive, why townhomes are so expensive, and why New York apartments are so expensive.
Moving is one of the most stressful times in anyone’s life, and paying more than necessary for a moving truck has contributed to that major life change.
Overall, it is clear that the demand, vindicated taxes, and availability of moving trucks significantly impact the economy.
The trucking market is volatile, and it appears that overcharging will remain a concern in the near future.