If youre in the market for a new vehicle, a used EV may be right for you. To help navigate the process, this guide will cover key considerations when shopping for a used EV, how to claim the IRA tax credit, and the pros and cons of choosing a used vs. new EV.
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Though EVs are cheaper than gas-powered vehicles to maintain and operate, the upfront cost of a new EV can be a barrier for making the switch. But growing inventory, plus the launch of Inflation Reduction Act (IRA) tax credits worth up to $4,000, have made used EVs an increasingly attractive and affordable option for drivers.
As of December , more than 180,000 electric vehicles (EVs) are on the road in New York State . While most were purchased new, used vehicles are becoming an increasing share of the EV market.
If you plan to use public charging stations, getting a used EV with an adapter allows you to charge at different styles of charge ports. For Level 1 and 2 charging, the SAE J plug is the most prevalent. For fast charging via DCFC, most EV models use a Combined Charging Standard (CCS) plug, apart from Tesla. Buyers considering a Tesla EV could benefit from a CSS adapter since all Tesla models have a proprietary charging plug that differs from all other automakers.
Getting access to an EVs telematics connection is essential for an optimal driving experience. Telematics systems provide two-way communication between a smartphone app and the vehicle to manage charging, view range and other metrics, and receive notifications for servicing and maintenance. Access to an EVs telematics is often complimentary for a set duration before drivers are charged a fee, so its worth checking with the dealer to see if a subscription comes included for a year or more.
EVs are typically sold with a charging cord, but there are other accessories to keep in mind when comparing options and at the negotiating table.
EV charging may be available at work or school, and such locations are ideal for their longer parking durations. When traveling longer distances, public direct-current fast chargers (DCFCs) can charge an EV to 80% in as little as 20 minutes. Note that most PHEVs and some older EVs are not compatible with DCFCs.
Charging at home, if possible, gives convenience and long-term savings, as the cost of electricity is usually cheaper than a public charging station. Using a Level 2 charger at home is recommended for all-electric models for charging efficiency (20-40 miles of range per hour of charging) and preserving the EV battery lifespan. Level 1 chargers, which add around 5 miles of range per hour, may be sufficient for older PHEV models with limited range.
Though public EV charging stations are becoming increasingly available across New York State, its important to consider where charging is available.
Warranties are usually transferable with an EV sale. Buyers can provide the EVs VIN to the automaker to check when the warranty expires and verify that its transferable to a new owner. EV owners can consider purchasing an extended warranty if theyre approaching the mileage or year that the factory warranty expires.
EV manufacturers are required by law to provide battery warranty coverage for at least eight years or 100,000 miles after the initial purchase, though some automakers offer warranties lasting ten or more years . Warranties cover the EV battery against failure but may also include provisions for replacement if the capacity is reduced below a specified percentage.
If youve ever owned a vehicle, you may have encountered manufacturer warranties providing coverage for repairs and the cars powertrain for the first several years.
While EV shoppers may be inclined to prioritize the maximum range, the reality is that New York residents drive an average of 228.3 miles each week or in other words, 32.6 miles a day. Thus, many used electric vehicle models can accommodate the majority of New York drivers day-to-day needs, especially if charging at home, work, or school is an option.
Typically, EV battery range degrades by 2% annually. For example, a Nissan Leaf, which was manufactured with an estimated range of 151 miles, could be expected to have a range of approximately 134 miles in . Note that temperatures below freezing and above 95 degrees can reduce battery range by up to 20%, temporarily .
Vehicle range refers to the distance an EV can travel on a fully charged battery. Its important to consider your routine driving habits commuting to work, running errands, or visiting close family or friends when comparing used EV options.
With either EV option, its still important to evaluate the vehicles condition, assess the mileage, and get details on past inspections, maintenance, and accidents. Buyers can typically get a vehicle history report from a dealership or car-buying website. Alternatively, the Vehicle Identification Number (VIN) can be used to generate a report with a third-party company.
All-electric vehicles involve less maintenance since they use fewer fluids (e.g., engine oil) and experience less brake wear from regenerative braking. Plug-in hybrid electric vehicles (PHEVs) benefit from regenerative braking and running partially on an electric motor, but they also have internal combustion engines like their gas-powered counterparts that require regular oil changes and maintenance.
However, there are several EV-specific considerations to keep in mind when browsing options.
Shopping for used EVs involves some of the same questions as any used car: Does the price fit my budget? Is it comfortable? Does it suit my lifestyle?
Electric vehicle sales have increased year over year. Nationally, new EV sales have grown from a modest 53,171 in to 326,644 in , indicating a rapid rise in used EV inventory in the coming months and years as early adopters upgrade to newer EV models often with the help of IRA tax credits of up to $7,500 .
In fact, used EV inventory has tripled since and around 190,000 used EVs were sold in the first half of . According to CarMax sales data, these are the five most-purchased used EV models :
Based on CarMaxs sales data, the average sale prices for both the Nissan Leaf and Chevrolet Bolt EV are near the $25,000 price threshold to qualify for the used vehicle IRA tax credit of $4,000. About 30% of used EVs currently on the market would qualify for the tax credit, which will function as a point-of-sale rebate for buyers starting in .
Used EVs purchases in can qualify for an IRA tax credit equal to 30% of the sale price up to a max credit of $4,000. Starting in , buyers can choose to transfer the tax credit to the dealer to lower the price of the used EV at the point of sale, rather than claiming it on their tax returns.
Besides the $25,000 maximum sales price, excluding taxes and fees, qualifying depends on several factors, namely the vehicle model year and buyers income.
A used EVs model year must be two years prior to the calendar year of the vehicle purchase, meaning that EVs from or earlier will be eligible in .
Additionally, the buyers income may not exceed the following limits set by the IRS:
Qualifying is also contingent on buying the used EV for personal use, not being the original vehicle owner, and having not claimed the used clean vehicle credit in the previous three years.
Browse the full list of used EVs models that meet weight and manufacturer requirements to potentially qualify for the IRA tax credit.
If youre planning to go electric with your next vehicle purchase, its worth comparing the pros and cons of buying a used vs. new EV to determine which is right for you.
Used EVs come at a lower upfront cost while still enjoying lower maintenance and operating costs than gas-powered vehicles. The national average price for a used EV in Q4 of was $27,800 , with models under $25,000 qualifying for a $4,000 IRA tax credit. Though powertrain warranties may not transfer from the original owner, battery warranties run for eight or more years, helping reduce the risk of investing in a used EV.
The average cost for a new EV hovered around $48,000 in , though there are notable price gaps between luxury vehicles and more economical and compact models . Several new EVs qualify for both an IRA tax credit and NYS Drive Clean Rebate, resulting in a combined discount of $9,500 for certain models.
The range of used EVs varies considerably depending on the model and year of the vehicle. Older models will have sufficient charge for daily use around town, whereas more recent models often have ranges from 100-200 miles.
The average range for EVs sold in the U.S. in was 291 miles, which significantly exceeds the average New Yorkers weekly driving distance of 228.3 miles . Opting for a new EV could be a better fit for drivers with longer commutes or those living in rural areas where theres currently less public charging available. Drivers that plan to rely on fast charging for frequent road trips may also prefer a new EV, or newer used model, since some older EVs are not compatible with DCFC stations.
The box truck industry is on the rise. According to Cognitive Market Research, from to , the truck industry is forecast to grow at a compound annual rate of 5.5%. This growth is fueled by the demand for box trucks (especially those that are electric and hybrid). It reflects a trend that's on the move towards sustainability and efficiency in transportation.
In this blog, we're going to provide potential buyers with a comprehensive guide that covers different types of box trucks, including box truck measurements, their uses, purchasing advice, maintenance tips, and operational strategies for box trucks. At Cota Systems, we aim to equip you with the necessary knowledge to make informed decisions on box truck investments. Let's get started.
A box truck is also known as a cube truck, a cube van, or a straight truck. Box trucks are characterized by a cab attached to a cargo area. They're enclosed by a rectangular or cube-shaped body. These trucks are extremely important in the logistics and transportation industry. A box van or cube van moves goods from place to place, making them vital in the world of commerce.
What's a straight truck?
Straight body trucks are vehicles with a fixed trailer (meaning they're permanently attached) and are also characterized as box trucks. These trucks are commonly used for small-scale transportation needs. This includes local deliveries and distributions.
Box truck sizes range between 10 and 26 feet in length. Depending on a business' needs, the size of a box truck must be carefully considered. They'll need to take into account factors such as cargo volume and maneuverability. They must also understand the importance of considering the Gross Vehicle Weight Rating (GVWR). This is to avoid the necessity of a Commercial Driver's License (CDL) for trucks under 26,000 pounds and ensure compliance with regulations. In GVWR, box trucks can range from Class 3 (12,500 lbs) to Class 7 (33,000 lbs). This offers businesses flexibility when selecting a commercial box truck.
What's the height of a 26 foot box truck?
The box truck's height ranges between 12.5 and 13.5 feet. The vertical space is ample enough for efficient loading and transporting.
How much weight can a box truck carry?
The payload capacity of a box truck refers to the maximum weight of cargo it can safely carry, excluding the box truck weight itself. To calculate payload capacity, you need to know the weight of the vehicle with standard equipment. You'll also need to consider all necessary operating consumables. These include things like motor oil, transmission oil, and coolant. Additionally, you'll need to take into account a full tank of fuel (while not loaded with passengers or cargo).
Here's the formula to Calculate Payload Capacity, with accurate calculations of payload capacity, businesses can optimize their box truck usage.
Payload Capacity= GVWR Curb Weight
Example Calculation:
Suppose you have a medium-duty box truck with the following specifications:
GVWR: 15,000 pounds
Curb Weight: 8,500 pounds
To calculate the payload capacity:
Payload Capacity: 15,000 pounds (GVWR)8,500 pounds (Curb Weight)
Payload Capacity = 6,500 pounds
So, this box truck can safely carry up to 6,500 pounds of cargo.
When comparing box trucks to cargo vans, there are some differences to keep in mind:
Design differences:
Box trucks feature a separate cab and cargo area. The size of a box truck's cargo area is typically large. It's a rectangular box mounted on the frame. Cargo vans, on the other hand, have a unibody design.
Size comparison:
When box trucks are used, they provide much more space than that of a cargo van. Although cargo vans are smaller, they offer the advantage of maneuverability. They're also easier to park and drive in dense urban environments.
Utility comparison:
A small box truck is well-suited for moving household goods, delivering appliances, or carrying equipment for mobile services. This makes them ideal for bulky items. Cargo vans excel in expedited delivery services. This would include things such as parcels and document delivery. They're ideal in areas where agility and accessibility are taken into consideration.
Owning a fleet of box trucks can be a very lucrative way to earn income. This is because a box truck business earns money by transporting and delivering loads. This is especially true in the less than truckload (LTL) sector. They're also suitable for local deliveries and are well-equipped for urban navigation.
In order to maximize earnings potential, consider business models for box trucks such as hot shot trucking and LTL freight shipping.
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Hot shot trucking is the transportation of time-sensitive or expedited loads. They often go short distances and provide quick and responsible delivery services. It's a niche market that box truck owners can capitalize on through urgent delivery demands.
LTL freight shipping involves transportation of smaller shipments. These shipments don't require an entire truckload. Box trucks work well for this because they can handle multiple deliveries within a localized area.
A commercial box truck can come in different types. They're each designed to cater to specific requirements and needs. Here are the box truck sizes classified by weight class:
The size of the box truck isn't the only feature that plays a major role, use cases assigned to each box truck should be considered.
What are box trucks used for?
Box trucks are used to transport non-perishable and dry goods. This includes electronics, retail and consumer products, as well as machine parts and palletized freight. Here are the trucks by usage:
Box trucks can also be classified by special design & features:
When it comes to box trucks, the size, usage, design, and features all play a significant role in their functionality and suitability for specific tasks.
There are different types of box trucks used for freight shipping. Let's take a closer look at the 6 most common and uncover what their unique serving purposes are within the logistics and delivery industry.
A commercial box truck is one of the most versatile and widely used types on load boards. They're ideal for a broad range of general freight. This includes packaged goods, furniture, and appliances. Take a closer look at light, medium, and heavy duty below:
Light Duty
Size: Typically a 10-16 ft. box truck.
Price Range: $25,000 - $45,000 new.
Payload Capacity: Up to 5,000 pounds.
Special Considerations: Light duty trucks are fuel-efficient. Additionally, as mentioned above, they're easy to drive in urban settings with no special licenses required for operation.
Medium Duty
Size: This truck ranges from 16-26 feet in length.
Price Range: $35,000 - $70,000 new.
Payload Capacity: 6,000 - 15,000 pounds.
Special Considerations: These trucks are more versatile and can handle a wider range of tasks. They may require a commercial drivers license (CDL). This will depend on the weight.
Heavy Duty
Size: 26 feet and up.
Price Range: $50,000 - $120,000 new.
Payload Capacity: Anything over 15,000 pounds.
Special Considerations: This box truck's dimensions are designed for large deliveries. They also require a CDL and are known for higher fuel consumption.
By understanding these distinctions, businesses are able to choose the best option based on their needs.
These trucks are specially designed for quick and efficient transport of parcels and small packages. Expedited and parcel delivery trucks are in high demand on load boards for last-mile delivery services. They aim to meet the demands of e-commerce and logistics industries. Take a look at compact delivery vans and standard parcel trucks:
Compact Delivery Vans
These vans are small, nimble vehicles perfect for navigating narrow streets and delivering small parcels and documents directly to customers' doors.
Size: When it comes to the size of a box truck, this one is compact. It's similar to a large SUV.
Price Range: $20,000 - $35,000 new.
Payload Capacity: Up to 3,000 pounds.
Special Considerations: These straight trucks are highly maneuverable. As mentioned earlier, they're ideal for city deliveries and offer low operating costs.
Standard Parcel Trucks
These trucks are larger than compact vans. They can handle a bigger volume of parcels while still being efficient for urban deliveries.
Size: 12-20 feet in length.
Price Range: $30,000 - $60,000 new.
Payload Capacity: 3,000 - 8,000 pounds.
Special Considerations: These trucks offer a balance between capacity and maneuverability. This makes them suitable for a broad range of parcel delivery services.
Compact vans and standard parcel trucks help businesses optimize their delivery operations. This ensures swift and reliable delivery of parcels and packages.
A refrigerated commercial box truck is also known as a reefer. These trucks are for transporting perishable goods that require temperature control. This can include food, flowers, and pharmaceuticals. Take a look at the differences between small and medium to heavy-duty reefers below:
Small Reefer Vans
Small reefer vans are ideal for delivering small quantities of perishable goods. For example, food or flowers can be delivered directly to retailers or consumers. These vans ensure freshness and quality.
Size: Similar to compact delivery vans but with refrigeration.
Price Range: $30,000 - $50,000 new.
Payload Capacity: Up to 3,000 pounds.
Special Considerations: Ideal for small-scale or last-mile deliveries of perishable goods. However, these trucks incur higher maintenance and operation costs due to refrigeration units.
Medium to Heavy-duty Reefers
These reefers are larger refrigerated trucks designed to transport significant volumes of perishable goods over longer distances.
Size: Starting out as a 16 ft box truck, these trucks can be up to 26 feet in length.
Price Range: $40,000 - $100,000 new.
Payload Capacity: 5,000 - 15,000 pounds.
Special Considerations: Designed to transport significant volumes of temperature-sensitive goods. Importantly, refrigeration unit maintenance and fuel costs are higher.
Refrigerated box trucks are vital in preserving the quality of perishable goods during transportation. They ensure fresh, reliable, and efficient transportation of temperature-sensitive cargo.
For the transport of specialized goods, box truck sizes with liftgates and side doors make it easy to load and unload. Take a closer look at these delivery trucks:
Furniture/Appliance Delivery Trucks
When it comes to different box truck types, these are specifically fitted with features like air-ride suspension for a smoother ride. These features make this truck type a go-to for moving furniture and appliances safely and securely.
Size: 16-26 feet in length.
Price Range: $35,000 - $70,000 new.
Payload Capacity: 5,000 - 15,000 pounds.
Special Considerations: The lift gates make it easy to unload and load heavy items. Furthermore, the padded interiors may be necessary for protection of fragile or delicate goods.
Trucks with liftgates are beneficial to businesses operating in industries dealing with furniture or appliance delivery because they cater to their unique cargo handling needs.
Moving box trucks are similar to general freight trucks. However, they're specifically used for household moves or office relocations. These services are common on load boards, as they cater to both local and long-distance moves.
Range of Sizes: The size of a box truck for moving ranges from 10 feet (suitable for a studio apartment) up to 26 feet (capable of moving 4+ bedrooms).
Price Range: $25,000 - $80,000 new, depending on size and features.
Special Considerations: Larger trucks might require a CDL. Moving trucks with lift gates and ramps are helpful features. Additionally, insurance and permits may vary based on use and geography.
Moving trucks offer a reliable and convenient solution for businesses that are relocating due to the size and features that accommodate various moving needs. These trucks ensure individuals and businesses have a successful moving experience. It's not uncommon to find local retail businesses outsource their moving trucks to increase revenue.
Box truck types also include utility and service trucks. Although they're not as common, there's a niche market on load boards for mobile workshops or utility trucks equipped for specific services. These trucks support industries like construction, repair, and maintenance.
Some utility and service commercial box truck examples include mechanic service trucks, electrician service trucks, and telecommunication service trucks. Here are some things to consider:
Custom Builds: The size of a box truck for utility and service as well as its features will depend on specific service needs. For example, mobile workshops may require ample storage space for equipment or emergency service vehicles may require specialized lighting and communication systems.
Price Range: $30,000 - $100,000+, heavily dependent on customization.
Special Considerations: Consider the need for built-in storage, power supply, and other specialized equipment. Operating costs can be higher due to added weight and equipment.
By investing in custom-built trucks that meet their unique requirements, businesses can enhance efficiency, productivity, and in some cases - earn extra revenue by outsourcing when their trucks are not in service.
There are a few ways to increase revenue for your business through your fleet of box trucks.
When starting out, you'll need to create a business plan and outline your initial investment. This way, you can see if you need to raise capital or apply for a loan. Then, you'll establish a business, choosing a name & logo. Afterwards, you'll need to open a business checking account and credit card. Finally, you'll need to set up a website. The website doesn't have to be complicated. You can choose a simple one pager that describes what you do, what you offer, how you're different, and how to get a quote.
Next up, you're going to need to obtain all the necessary permits and licenses. This is required to operate your box truck business. Importantly, if your truck weighs more than 11,000 lbs, you have to register for an MC (motor carrier) number and a USDOT number. You can find out more on registration requirements at FMCSA. Then you'll need to file for a BOC-3 form. This is known as the Designation of Agents for Service of Process. If you're transporting interstate, you'll also need a Unified Carrier Registration (UCR). Last but not least, you'll need to acquire the appropriate insurance coverage that protects your business and assets.
You'll need to choose the best option for your business whether that's to purchase or lease your box truck:
When to purchase:
When to lease:
When you buy a box truck, you need to equip it with truck driver accessories. This enhances productivity and safety.
The final steps in a start-up trucking business include:
With careful planning and strategic decisions, you can establish a successful box truck business.
It's essential for a box truck owner to utilize reputable load boards, especially if they want to connect with available freight opportunities efficiently. When looking to find guaranteed loads, try our Cota Systems Load Board. We prioritize the credibility of our brokers, carriers, and shippers within our network. This is a great option to minimize risks and ensure steady freight opportunities, offering peace of mind for box truck operators.
As a business owner, your trucks are likely dropping off shipments and coming back empty. With Cota Systems, you can ensure your drop-offs aren't dead-heading (driving back empty). On their way back, they can pick up another load that's on route for another shipper - making your trucks work for you for every mile driven with LoadBoost. Our platform is designed to optimize your load planning while boosting your earning potential.
When considering which box truck types are worth the investment, there are several models that stand out for their reliability, performance, and versatility. Some of the best box trucks of include:
These are popular choices among box truck buyers. This is because these models have consistently earned high marks in various aspects, especially to buyers that desire quality and dependability.
What is the life expectancy of a box truck?
According to the HFI Truck Center, a box truck's lifespan can range anywhere between 250,000 and 155,000 miles. Factors that influence the life expectancy include the maintenance or replacement parts needed.
A commercial box truck is a great option for those who need to transport loads in cramped areas and busy traffic. Here's why:
With reasons like these, it's easy to see why many businesses choose straight trucks. Whether you're a small business owner or a seasoned logistics professional, integrating box trucks into your fleet can be a strategic investment.
We hope this guide to different types of box trucks has shown you that they offer a versatile and efficient solution for transporting goods. Congested urban areas and residential neighborhoods greatly benefit from this trucking solution. By leveraging the insights provided, you can optimize your box truck operations and maximize your revenue. Remember, the key to unlocking the full potential of your box truck business relies on informed decision-making and strategic planning. Cota Systems is here to help you streamline operations and enhance the use of every mile for ultimate earning potential. Get in touch, we'd be happy to help!
Up next, check out our blog on how to find box truck loads.
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