Purchasing a Wholesale Reefer Unit
While the United States is home to a vast manufacturing sector and many farms, the freight carrier industry is vital for carrying around finished goods and foodstuffs. Large carrier companies boast naval ships that can carry many tons of cargo to the world’s ports in steel shipping containers, while freight trains can deliver just as much cargo by land. Meanwhile, jets can deliver smaller loads of cargo very fast over any kind of terrain, often to make overnight deliveries. But don’t count out the smaller carrier companies, which offer fleets of semi trucks to make deliveries. Even small carrier companies can afford these vehicles, and many shippers make good use of them every day. Some truck trailers are generic, but some are designed for specialized cargo, from reefer units to trailers designed to carry liquid nitrogen or hazardous materials. What is a reefer trailer, anyway, and is it lucrative for a carrier company owner to find wholesale reefer units nearby? Reefer trailer costs vary, but loans are always available to help finance a new truck.
All About Reefer Trailers
A reefer truck trailer is a trailer that has air conditioner units built into it so it can chill the interior, and the trailer’s walls have insulation in them to help maintain the cold despite outside warmth. Often, these trailers are used to deliver cold-sensitive items such as meat, dairy, and frozen processed food for grocery stores, making them quite popular. These trailers vary in length from 28 to 53 feet long, and the largest models may be as tall as 13.5 feet and weigh an impressive 44,000 pounds. These trailers can chill their interior to any necessary temperature between -20 and 70 degrees Fahrenheit, depending on the cargo’s needs.
Carrier reefers represent a huge and ever-growing market in the United States and beyond. Today in the U.S., some 500,000 or so reefer trucks are in operation, and more are being ordered every year. In January 2018 alone, around 40,000 of them were ordered, according to FTR Transportation Intelligence, which was even more than January 2017’s figures. Around the world, the global reefer trailer market was around $5 billion in the mid 2010s, and experts say that from 2016 to 2022, this market will grow at a CAGR of 4.8% to reach a total value of $7.65 billion by 2022. It is clear that any carrier company owner who looks into reefer trailer costs may find a way to profit from buying new or used trailers, since the demand is so strong. How can reefer trailer costs be managed so a carrier company can profit from these trailers?
How to Buy Reefer Trailers
A truck carrier company owner can look up local reefer trailers for sale, both used reefer trailers and new reefer units, to find some appealing reefer trailer costs and deals in the area. The buyer is urged to look over these trailers in person before making a purchase, especially for used models, to ensure that it’s a good buy. A buyer should look over a used trailer’s wheels, axles, brakes, and brake lights, not to mention the air conditioning units to make sure they’re in good working order. The buyer might even take the trailer for a test run to double-check that it can generate and maintain the desired temperatures inside. New units are more expensive, but come with factory warranties and are in top shape.
Often, reefer trailer costs call for a loan, especially new units or large, gently used units. A buyer may have trouble securing a loan from a big bank, but they can approach specialized truck lenders and apply for loans. Such lenders understand the risks of the business, and they have generous terms. Still, they will check a borrower’s personal and business credit scores and check the buyer’s financial history for red flags. If things look good, the borrower might get as much as 100% of the truck trailer’s value in a loan, and at a low interest rate. Borrowers with low credit scores may still get approved for a loan, though with less favorable terms. Either way, the trailer itself will act as collateral for that loan, making it a secured loan and therefore more attractive to the lender.
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