Lease/Rental Hotshot Trucks/Trailers

[gringolobo]

I’m curious if there is a demand for short to long term rentals of 3/4 or 1 ton rucks fully equipped with ELD and telematics? Say for example a 2020 or newer Ram 2500-3500 with onboard ELD/telematics, fire extinguisher, 5th wheel/gooseneck hitch, warning signs (the triangle ones), and corresponding paperwork. Insurance coverage specifically for hauling could be added to the rental at checkout or the carrier could include a COI of their own prior to rental. FMaaS lol (Fleet Management as a service). I am familiar with costs associated with renting through Enterprise trucks but I’m curious if there is any demand for this service. Could eventually move to big rigs but that market seems to be a bit more saturated with bigger players.

 

[rls]

@gringolobo I doubt it. Whose problem are you trying to solve?

 

[gringolobo]

@rls The hotshot trucker with an unexpected downtime or loss of a vehicle, the general contractor that needs a truck for a crew in the field. I’m posting this to try to see if there is a unique use case or need from a specific job sector that is underserved currently.

 

[sandra69]

@gringolobo I think TURO could test the waters of your local market

 

[gringolobo]

@sandra69 I thought about that but their terms of service don’t allow for towing so I wouldn’t be able to list vehicles with towing in mind. I’m not sure if you can register as business on there either. I’d prefer to separate this out under an existing LLC. Do you rent on Turo?

 

[sandra69]

@gringolobo No, I’ve thought about it. I have an F250 that gets used 1x a week and I always wondered what else I could do with it to generate a few extra bucks (even if it was renting out for $50-$100)

 

[gringolobo]

@sandra69 I get that. I might just have to try TURO on for size. Best of luck to you if you go that route too!

 

[amw88]

@gringolobo united rentals up here rents trucks like that.

 

[dlc68]

@gringolobo The 40' trailers are somewhat commonly leased for hotshots. Not sure about the trucks.

It seems like one of those businesses that could work for the right person in the right place, but it doesn't seem very attractive for the average person. Idk.

 

[gringolobo]

@dlc68 I get that completely. Debating if it’d make more sense to target general contractors or large facilities instead on more of a long term lease/rental. Say they’d have a job for 4 months on a road and want to rent a truck for it.

 

[dlc68]

@gringolobo I would think there is a pretty dramatic difference in the way a contractor pulling a trailer uses a truck and a hot shot operator. I would think hot shot operators would tend to come in with less body damage and far far more miles.

 

[gringolobo]

@dlc68 I would agree which I really the route I’d like to go. I compared pricing and I think I can be very competitive once more miles get added on. Enterprise only gives you 3,000 included with a month rental before they start charging $0.29 a mile.

 

[dlc68]

@gringolobo It seems like you have price, contract terms, availability, model selection, configuration, and equipment, scale, service terms, and location to work with.

I wouldn't try to go head to head with a big outfit next door to you based on price alone. I would look for customers who are under served by the bigs. There could be quite a few or them in some areas and industries.

 

[gringolobo]

@dlc68 That makes a lot of sense. I think I need to find an “anchor” or a commercial client who’d be willing to commit to a rental or two to behind with and go from there as the thought part starting up would be the depth of having readily available replacements I think. Idk it’s really just a thought at this point and I want to see all the numbers in front of me of me ahead of time.

 

[fire_starter]

@gringolobo I’d say there is a market, but not a good one. I work for a truck rental company and we get a bunch of inquiries about these types of truck (1 tons with goosenecks). The thing is though, from our business perspective, they’re not worthwhile for us because hotshot depreciates our trucks wayyy too quick, and we get burned by most, if not all (which is why we stopped renting to them). However, we do every once in awhile get customers in them for months at a time that aren’t hotshots, but very infrequently, like we don’t even stock 1 tons. As for 3/4 tons, the market is better but it’s a more short term/“retail” market. I’d say our average 3/4 ton rental last a week or two. Lots of weekend only renters in the summer. If you’re looking for long term renters, more specialized trucks is where it’s at. Check out “Premier Truck Rental”, they seem to be doing well

Sorry it’s a little long winded, not very often I can provide insight on the truck rental industry lol

 

[gringolobo]

@fire_starter I appreciate the insight! Did some googling at the beginning of all this and found them, Barco, and FlexFleet as the more specialized names in the industry besides United and Enterprise. My whole goal is to work around a W2 job at the start even if I have to do things before and after work and on weekends. I want to do longer term rentals but I just found out today I would have to be licensed as a finance company in my state which in turn requires a business location open 40 hrs a week like an auto dealership. Soooo, that plan flew out the window too. Idk anymore really lol.

 

[fire_starter]

@gringolobo Absolutely!

Long term definitely sounds like the better option for you having to work around a regular job

And that’s interesting with the long term leasing requirements. I know our long term rentals renew every 28 days, not sure if we have a similar law in my state and use that to circumvent that, or not, or if there’s another reason

 

[gringolobo]

@fire_starter For long term rentals that renew, do you get the truck back in at 28 days for maintenance or is maintenance done while it’s out?

 

[fire_starter]

@gringolobo Nah, truck stays out. On renewal we just charge the customer for that months rent and a new contract starts for the next month. Maintenance is done while it’s out, if they’re local we do it at our shop, if they’re out of the area, we send them to a 3rd party in our network (we’re a national company so we have 3rd party providers everywhere)