I got into the U-Haul business to make some extra money while I was trying to develop my primary business. The concept seemed rather simple, the only question was how I would really make money from this concept and just how much would I make from it? Once I reviewed the dealership information website (which is only available to approved dealers), I learned the answers to these questions. Here I will share some of those answers with you.
Renting Moving Trucks
Of course, the core of this business is to rent the drivable moving trucks for local and one-way moves. All of the prices for these rentals are set and controlled by the U-Haul Corporation and you have little ability to make changes to those rates. This business is based on commissions; as a dealership you will be paid a percentage of rentals and sales you bring in for the brand.
The moving trucks have a daily rate that ranges from $19.95 per day through $39.95 per day for local rentals (a rental where the truck is returned to the location it was rented from) and a mileage rate that currently goes from $0.69 to $0.99 per mile based on the day of the week. When a truck is rented from your location, you will receive about 20% of the gross pretax revenue for the daily rate and the mileage from each rental. As your business grows, this rate could increase very slightly with a cap around 25%.
With one-way rentals U-Haul charges a flat trip rate based on the distance between the pickup and drop-off locations. This rate includes miles and days allowed for the rental without additional charge. When your location rents a one-way rental, you will receive closer to 25% of the gross rental rate for the move. This rental is where you make your money in this business. If a customer rents a 26ft truck from my location in Florida and returned it to a location in New York, I could net around $250 from that single transaction, just for having the truck on my lot.
U-Haul also rents towable trailers that do not require the rental of their moving trucks. These trailers obviously do not charge a mileage fee. In addition, their daily rates are cheaper than the trucks. As a result, the commissions on these trailer rentals are a little higher ranging from 25 – 30% of the gross rental amount.
Commissions on other Fees
Dealers also make commissions on the sale of SafeMove insurance for the equipment as well as the rental of moving devices such as hand trucks and furniture pads. In the event your location has to charge a customer a fee for being late, returning to the wrong location, or damage to the equipment, you will also receive a nice commission on these transactions as well.
Getting Paid
On Monday of each week, U-Haul will debit your business the gross amount of money collected at your location for the week prior. On the following Monday, they will deposit your commissions from the sales they collected from you the week before.
