There are a variety of large purchases that a person may be inclined to make at some point during their lives, but a select few people may find themselves in the position where they need to purchase a towing trailer.
Whether you are working in the equipment industry or simply have towing needs on a regular basis, learning how to budget for this large purchase is important.
Trailers are not a cheap purchase, even small ones, which is why ensuring you don’t break the bank is crucial.
How Expensive Are Trailers to Purchase?
At first glance when starting to consider a cargo trailer for your hauling needs, the price may not seem too awful. After all, certain options can be found for a couple thousand dollars at most.
Unfortunately, these options have extremely low weight limits that do not suit the average uses for trailers.
The real cost associated with purchasing a trailer tends to be quite a large range, with $11,000-$100,000 being the average, though most trailers fall close to the former of that range.
Non-powered motorhomes are typically the only trailers that will approach six figures, with the other common trailer types typically still being tens of thousands of dollars.
The Different Types of Trailers to Consider
The first decision when building out a budget is setting a max spend amount, but this can be difficult when you aren’t even sure what type of trailer you will be purchasing.
To that end, below are some of the most common types of trailers purchased by everyday consumers:
Utility Trailers
Utility trailers are the first type of common trailer and they are most often framed metal trailers that can withstand small amounts of weight.
These types of trailers are most often used for transporting small pieces of equipment that would not fit easily in a vehicle, such as a lawnmower or something similar.
Enclosed Trailers
A more niche type of trailer is an enclosed trailer which, as implied by the name, is closed on the sides and top.
They are typically watertight and feature a durable cargo box design, specifically designed to handle harsh weather while offering maximum protection for anything put inside.
Equipment Trailers
Equipment trailers are often also called flatbed trailers and they are a specialized type of trailer that is made to transport heavy motorized equipment.
There aren’t usually sides to this trailer, but it has a drop-down ramp in most cases so that the motorized equipment can be driven off of the trailer.
Tow Dollies
Finally, a tow dolly is the last common type of trailer and is used for transporting a vehicle. It is usually an open-air trailer, though it can be enclosed, and it secures to a vehicle at the front or rear wheel.
This locks the vehicle into place so that it can be moved on top of the trailer.
7 Tips to Budget for a Trailer Purchase
Depending on the type of trailer you are considering purchasing, whether one of the above trailers or something else, learning how to budget for the cost is important.
The following beneficial tips will help ensure you save the most money ahead of your purchase:
- Start saving months in advance
The easiest way to start budgeting for a trailer purchase is to start saving up for months in advance. Take notice of any towing needs you may have in the future and reallocate some of your savings to a new dedicated savings account that will go towards this purchase. This will allow you to see your savings that are strictly for this purchase in one place.
- Set money aside on a monthly basis
Building off of the above tip, be sure to set aside money on a monthly basis when your paycheck comes in. Only put aside money for the purchase after your normal savings account has been contributed to, as a note, to ensure that you don’t interrupt your normal savings habits.
- Cut back on everyday expenses
While fun money is an important part of life, saving up for a big purchase means sacrificing some of the expenses you have come to love. Cut back on everyday expenses heavily in order to free up more money to go towards your purchase of a trailer.
- Separate your “must haves” from “nice to haves”
Further developing the prior point, separate your everyday expenses into two categories: wants and needs. This will make cutting out certain types of expenses far easier by allowing you to identify only the items you need in your life.
- Utilize budgeting tools
For those who are more old-fashioned, consider using software such as Excel to build out a budget in the months ahead of your purchase so that you can be sure you’ll have funds. Those who may be more tech-savvy can consider using newer platforms that take note of your expenses and connect directly to your accounts to find ways to save you money.
- Calculate your current monthly expenses
One key budgeting tip for a large purchase, and any budget in general, is to evaluate the prior few months of spending that you have had. This can give you an idea of what your monthly expenditure looks like so that you know where you need to cut your spending specifically.
- Start paying off any debt
Finally, aim to pay off any smaller debts that you may currently have before making this large purchase. It’s entirely possible that you may need to take out a loan to purchase the trailer, and the last thing anyone should be doing is adding more debt to their life.
The Bottom Line
With the large cost associated with purchasing a trailer, anybody needs to budget for the purchase well in-advance, even if they are taking out a loan on the trailer.
All of the above tips combined will help make the purchase more bearable while helping to ensure you have money left over for discretionary purposes.
Finally, never purchase the first trailer you find without first double-checking that you can’t get a lower price elsewhere.