Introduction
When purchasing a trailer, the sticker price is just the starting point. Your total cost of ownership (TCO) includes financing, maintenance, fuel, insurance, depreciation, and more. In this guide, we walk you through each expense category so you can make an informed decision and secure the best value for your fleet.
1. Purchase Price vs. Financing Expenses
Begin with the upfront cost of the trailer, then factor in loan interest or lease payments. Compare multiple lenders to secure the lowest rate, and calculate the monthly financing cost over the term. Don’t forget origination fees or early-payoff penalties.
2. Depreciation and Resale Value
Trailers typically depreciate 15–20% per year. Estimate your unit’s residual value after your intended ownership period. A trailer that holds 60%–70% of its value at resale will lower your annual depreciation expense significantly.
3. Fuel & Aerodynamic Accessories
Aerodynamic enhancements—side skirts, roof fairings, tail extenders—may add upfront cost but can deliver 5–8% fuel savings. Calculate expected fuel consumption over your annual mileage and model the payback period for each accessory.
4. Routine Maintenance & Repairs
Budget for scheduled service (oil, brake adjustments, refrigeration checks) and unexpected repairs (tire replacements, suspension wear). Use industry benchmarks—roughly $0.08–$0.12 per mile—to project your annual maintenance spend.
5. Insurance & Registration Fees
Insurance premiums vary based on trailer type, cargo value, and location. Gather quotes for liability, physical damage, and cargo insurance. Add state registration and permit fees, especially if you plan cross-border operations.
6. Storage, Yard & Handling Costs
If you lease yard space or require liftgate services, include monthly yard rent and handling fees. For refrigerated trailers, factor in electricity costs if plugged into onsite power while idle.
7. Downtime & Opportunity Cost
Every day a trailer is out of service impacts revenue. Estimate potential lost earnings during maintenance or repairs and compare service network availability. A strong dealer network with loaner units can dramatically reduce downtime costs.
Conclusion
Calculating the full TCO of a trailer empowers you to compare options objectively and choose the model that offers the best long-term value. By accounting for financing, depreciation, fuel, maintenance, insurance, storage, and downtime, you’ll avoid hidden expenses and protect your bottom line.
Next Steps
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🔹 Run Your Personal TCO Analysis
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🔹 Explore New & Used Trailers
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🔹 Contact Our Fleet Specialists
About Frontier Truck Sales
Frontier Truck Sales delivers new and certified pre-owned dry-van and refrigerated trailers with nationwide shipping, flexible financing, and 24/7 expert support—ensuring you get the most value from every mile.