Excise Tax Repeal Could Lead to More Independent Car Transporters
Independent car transporters and fleet truckers alike could be getting some good news. Well, not existing ones, but potentially new ones, anyway: an excise tax repeal on new transport trucks.
Right now, the federal government places an excise tax of 12% on new commercial freight haulers. According to numbers quoted in this CCJ article, the 12% excise tax on new trucks is the highest excise tax in the nation – even higher than that on alcohol and tobacco. According to the article, this excise tax adds anywhere from $12,000-$22,000 to the cost of a new truck.
That’s a problem for a lot of people looking to break into the industry, adding years to payment plans and making it more difficult, economically, to actually get the truck paid off.
But the repeal might change that.
How independent car transporters can benefit from the excise tax repeal
The excise tax repeal likely won’t affect any existing car shipping carriers. This is because they’ve already purchased their trucks and paid (or are in the process of paying) the tax.
But it could help new startups and mom-and-pop shippers get a truck at an affordable rate. If you’ve been following our blog at all, you’ll know that there’s more demand for transport services than there are transporters to provide it. This isn’t all that uncommon, especially during the summer when demand skyrockets. If more people can get a truck at a good rate, the more trucks there will be on the road, and thus more trucks to meet the demand.
This could, in turn, make things better for customers. Not only would wait times for pickup and transport decrease, but prices would be lower as well. When there’s more demand for transport than trucks to transport, carriers can pick and choose their loads. And they always go for the highest-paying loads first, which in turn inflates prices along popular routes. That competition just isn’t there.
But you add in a bunch of new trucks, and all of a sudden competition increases. This results in more freight being moved and lower prices to move it.
Right now, the bill is still in committee, and is slated for debate and discussion. So if it happens, it likely won’t be soon. But we’ll keep you appraised on it and we’ll talk more about as more information becomes available.
Get quality car shipping quotes with American Auto Shipping
We love to speculate about new auto transport news. And this news could potentially be huge, especially considering the short supply of drivers right now. But regardless of what happens, you still need to ship a car at a good rate. And we can help with that. Fill out our free online quote form to get a free, custom quote immediately. Our prices are built to move your vehicle when you need it moved without breaking the bank. You can also contact one of our agents any time at 800-930-7417. They can answer questions, give you advice about your shipment, and even get you a free quote right over the phone. So no matter what happens with this excise tax repeal, you can rest easy knowing you’ll be in good hands with American Auto Shipping.