According to the latest Australian Motor Vehicle Census, Light Rigid Truck (LRT) registrations are growing in number faster than any other major vehicle category, boasting an annual growth rate of 4.1% from 2010 to 2015.
To put this in perspective, the number of light rigid trucks on our roads has increased by 21.4% since 2010, while heavy rigid trucks have increased by only 5.2% in the same period.
Although previously buoyed by infrastructure investments in the mining sector over the past decade, the last five years has seen the online retail segment explode in popularity, which requires LRT resources to deliver goods to consumers.
GoGetta Business Leader of Sales Caleb Gunn said that growth in the light rigid truck sector is expected to continue, signalling huge opportunities for owner-operators to get into this line of work.
“The increase of Internet based business has resulted in more courier and delivery drivers at the expense of traditional Australian Post deliveries.
“As the Internet shopping grows in Australia, this will have an increase in road freight,” said Mr Gunn.
Australia’s penchant for online shopping is unwavering; the online retailing sector represents a $15.6 billion industry in Australia. Furthermore, the industry has an annual growth of 16.5% from 2011 to 2016.
The last few years have heralded a significant shift in the way that consumers make transactions and interact with businesses, citing convenience, availability, pricing and delivery options as key reasons for purchasing online.
Mr Gunn said that GoGetta’s unique funding model meant that small business owners could get the equipment they need quickly to grow their business and take advantage of these opportunities.
“You can get a $40,000 truck for your business and claim it as a tax write-off.
“GoGetta’s funding is a no-brainer if you work as an owner-driver, courier or delivery driver and you want to protect your capital and cash flow while still building equity in the asset,” said Mr Gunn.
Earl De Cruze, owner of Earl Cruze Transport, said he saved a lot of money when he made the switch from traditional hiring to GoGetta’s Rent-Grow-Own solution.
“I was looking at trucks and the dealer was advertising GoGetta’s Rent-Grow-Own, which had all these options for my business – it was pretty flexible – and meant I would not have to invest lots of money up front.
“The $25,000 truck I got through GoGetta was decent, with low kilometres. I’m paying GoGetta $288 a week for it in rent. For the previous six months, I had been hiring a similar truck from a well-known truck hire company for $330 a week – five days, not seven. It was dead money,” he said.
Owner-driver Michael Devine of removalist company, Devine Integrity, used GoGetta’s funding model to secure a 6-palette truck for his business, where he says industry experience counts for more than meeting a strict checklist like a bank.
“Whereas the banks rely on [credit scoring models], GoGetta wants to know about your business plans—it’s not like talking to a computer,” says Mr Devine.
Renting your equipment is a great way to go, as it is counted as an operational cost instead of an expense liability, not to mention you can claim 100% of the rental payments as a tax deduction*.
GoGetta’s Rent-Grow-Own financing solution is a good option, as it frees up your capital and has flexible terms so that if the piece of equipment you choose turns out not to be right for you, you can return it after 12 months.
If you’re interested in reading more about getting into the light rigid truck sector, check out this free guide: Going The Distance: How to start and run a successful owner-driver trucking business.
*GoGetta does not provide legal, tax or accounting advice. Please seek professional advice from a qualified person.