By Sharon Jones
In recent years, the economy has taken an obvious tumble. The global economic crisis from the last decade was only the beginning. Soon after, the general public got to learn just how corrupt some companies were. Of course, it's the everyday folks like you and I that had to bear the brunt of those economic issues.
With companies closing and job losses increasing, many folks weren't spending much money. One way to cut down on expenses is to drive an older car. The trouble with such a strategy is that reliability is seldom guaranteed. It's not uncommon for older vehicles to break down on the side of the road.
When that happens, a recovery company can get tasked to pick you and your car up. The good news is you aren't stranded for very long. But, for you, the bad news is you've got to pay for some repairs to your car!
Today, economic uncertainty isn't as bad as the latter half of the last decade. In fact, more of us are creating our own jobs by becoming self-employed; believe it or not! Still, we aren't all rushing to our nearest dealerships to buy brand new cars. Many of us are still keeping our older vehicles on the road and fixing things as they break.
As you can imagine, that's one reason why the vehicle recovery sector is booming and has done for many years. More companies are setting up in this lucrative industry. Aside from folks driving old cars that aren't in good working order, what else keeps them in business? Here are some of the key growth catalysts behind such a market:
It's cheap to start a recovery business
Some people will assume that the startup costs are high for a recovery firm. Here's the thing: they aren't! For a start, landowners are reducing the cost of leases for commercial properties. And for storage yards too. That means it's cheaper to set up a base and store recovered vehicles.
Next, there's the cost of the infrastructure needed. Places like Auto Trader Trucks are ideal for seeking affordable recovery transporters. And staff costs can get kept low by hiring people on a self-employed basis.
It's not just broken down cars that need transporting
Recovery firms get tasked to move vehicles from one location to another for all kinds of reasons. Car dealerships offer the biggest source of revenue for such companies. They need vehicles transported to the homes or offices of their new owners. Or they might need to move cars from one dealership branch to another.
Even the public sector hires vehicle recovery service providers. The army, for instance, might need Jeeps or other vehicles transported across the country. Services like the police force might need to deliver damaged vehicles to get repaired. And the police also use them to tow away abandoned cars dumped on public roads.
Some car owners can't drive their cars for the strangest of reasons
Vehicle recovery trucks have the pulling power to extract cars from all kinds of places. You might think that their main use is to pick up broken down vehicles. But, they also pick up individual cars for the strangest reasons!
One example is where someone has stolen all four of the wheels from a car. Another is when a disgruntled person writes profanities on a vehicle with a key or knife. In fact, there's a whole host of odd reasons!
Long-distance transporters are economical on fuel
Imagine if you had two or three cars that you needed moving several hundred miles away. Perhaps you are moving home or selling the cars to a collector. Now let's assume they are high-performance models that have poor fuel economy.
The last thing you want to do is spend hundreds, if not thousands buying fuel for each vehicle. A more economical option is to get a vehicle transporter to move them.
Being diesel trucks, they offer plenty of fuel economy. Many transporters can carry two or more cars at the same time. The fuel savings are often bigger than the cost of hiring the transporters.
Will the bubble burst for the vehicle recovery market?
In a word, no. It's likely business will continue to boom for operators of recovery trucks and transporters. As you can see from the examples above, there are many ways such firms can get utilised.
They provide an effective, efficient and essential service to thousands of people. Even if the country were to get gripped by a recession, they would still profit from motorists. And other businesses, of course!
Sharon Jones is a contributor to zenruption and has her B.A. in political science from UCLA. As a new mother, she is interested in helping shape the world her daughter will inherit. She likes pina coladas and taking walks in the rain.