Surely, we can all agree that moving is so expensive nowadays, and U-Haul is not making things any easier with its high costs.
Furthermore, if you are curious about why exactly U-Haul is so expensive, you have come across the right article. I have done all the research to determine 11 reasons why U-Haul is so expensive, so continue reading!
Why Is U-Haul So Expensive?
1. Your Location Can Effect How Expensive Your U-Haul Is
The prices of your U-Haul will change a lot depending on the distance you are traveling, your location, and even the neighborhood you are located in.
Luckily, U-Haul has offices pretty much everywhere in the United States which does tend to make things easier for those who need to rent moving vehicles.
Furthermore, U-Haul has such a massive infrastructure, so it can more or less ask for any prices that it wants and if people are desperate to get out of an area, U-Haul can charge more.
For example, California is a well-to-do state, which means that U-Haul is more likely to charge premium prices if you live there.
2. Your Drop Off Location Can Effect How Expensive Your U-Haul Is
Just like when choosing where to pick your U-Haul up from can affect the price of your U-Haul, so can where you drop it off.
This is simply because if you are dropping your rental off in a more expensive area, it is going to cost more.
3. U-Haul Trailers Are High In Demand
There are always people who are moving no matter the time of year, creating a high demand for self-moving equipment such as U-Haul moving vehicles and trailers.
Furthermore, this is because many do not want to hire big moving companies to move their belongings from point A to point B and would rather be responsible for their own things.
Additionally, another reason why U-Haul is so high in demand is that the company does not have many competitors.
4. Keeping Up With Maintenance On Vehicles Is Expensive
Vehicle maintenance is the reason that many cannot afford to have their own vehicles, and instead need to rent them for the purpose of moving and whatnot.
Still, U-Haul cannot hide from these prices and again, turns to its customers to pay for repairs and maintenance that its vehicles may need.
Therefore, the cost of repairs and maintenance is added to the cost of renting a U-Haul.
5. The Company Relies Heavily On Branding
Every company that wants to stay afloat in this economy needs to invest in heavy marketing and branding, and this does not exclude U-Haul.
Furthermore, the company is undoubtedly aware of the fact that you need to have effective commercials in order to gain clients.
Of course, the branding and marketing costs have to be brought in from somewhere and it is certainly not from shareholders.
This means that marketing costs fall onto customers and you are most likely going to pay for it if you choose to use the company’s services.
6. There Are Rising Insurance Prices
For whatever reason may be, insurance prices seem to be constantly rising.
Along with other American vehicle companies, U-Haul has not been spared by these rising costs of insurance.
Of course, someone has to pay for these costs, and U-Haul is not interested in paying for them itself, meaning this cost will be falling into the price of your U-Haul rental.
7. U-Haul Does Not Have Many Competitors
There are a few alternatives to U-Haul but most of them are not as convenient.
In fact, no other truck rental companies can be found in every town, village, and state across the country.
Of course, U-Haul knows this and the company uses it to its advantage by making its prices higher.
8. Gas Prices Are Soaring
Gas prices tend to go up and down from time to time and unfortunately, these costs are out of our hands and the hands of U-Haul.
Of course, if you are only planning on moving across town, the prices of gas are not going to impact the cost of your U-Haul all that much.
However, if you are planning on moving somewhere further, the pricing is going to be higher.
9. Running Vehicles Are Expensive
The cost to keep vehicles running is expensive whether you are taking maintenance, gas prices, or insurance into consideration.
As mentioned previously, U-Haul cannot hide from these costs, however, it can make its customers pay for them by making its services more expensive.
10. U-Haul Is Pricey Because The Company Can Get Away With It
U-Haul’s massive diversity of locations gives them some extra leeway for price gouging.
Furthermore, when it comes down to it, U-Haul’s pricing is high because they are the only ones in town.
11. The Cost Of Living Is Very High
The cost of living seems to be going up each passing day and this is caused by wars and other global and national catastrophes.
This, of course, makes everything more expensive including electricity, gas, and even food, making the average American have to pinch pennies at the pump and in grocery stores.
Unfortunately, as a company in the service industry, U-Haul is greatly affected by this.
Therefore, it is forced to raise its prices in order to afford everything that goes into the company including staff salaries.
There are many reasons why U-Haul makes its prices so high, and most of the reasons are simply to help cover the costs for the vehicles that the company is renting.
However, some of these expenses also include the cost of living, insurance prices, branding costs, vehicle maintenance and repairs, fuel prices, location, and the fact that U-Haul is high in demand and does not have many worthy competitors.