When relocating to another neighborhood, county, or state, U-Haul is one of the fairest moving services you’d want to engage with. The moving company – U-Haul – practically has the exact vehicle that can move all your properties at a go, and it offers reasonable prices, which, to some people, are so cheap.
But why is U-Haul so cheap?
To most people, U-Haul prices are low and affordable, while to others, it’s a bit expensive. The thing is, U-Haul pricing is competitive in the market, and yes, it is cheaper to go with U-Haul when you’re moving out from one state to another; U-Haul is cheaper for long-distance movements.
Why is U-Haul So Cheap?
Practically, there are many reasons to point out when discussing about U-Haul’s seemingly affordable prices. Firstly, the company has established a strong reputation over the years and has more than 21,000 centers across the United States.
Hereunder are valid reasons why U-Haul prices are pretty much lower than other alternatives you may find out there.
See Also: Is CarMax Negotiable?
1. Multiple Service Locations
U-Haul is available across the United States; no matter where you live, you’d most likely be just a few minutes’ drive away from a U-Haul service.
This allows the company to charge more competitive prices than its competitors because it is closer to your location where the movement will kick off from.
2. Fewer Restrictions
U-Haul is a prominent company in the US; the company operates with fewer restrictions compared with regular rental car services. For this reason, U-Haul doesn’t require much from you when you come to hire a truck or van from its fleet; they’d only request a passport and a signature.
In contrast, other moving companies and rental car services may request several documents before renting out their vehicle to you.
Not many people are ready to submit all those documents, so they’d run back to U-Haul; this means U-Haul receives more orders daily. They can easily meet their overhead even on a little token as profit.
3. Add-On Services
Pretty many people that have used U-Haul admit that they offer low prices for renting out their fleet; however, it is said that the add-on services offered by the company are quite pricey, and somehow you can’t do without ordering those add-ons.
So it is arguable that U-Haul uses the profit it makes from its add-on services to make up the low prices of its vehicle rentals – call it business strategy?
4. Strong Reputation
U-Haul has a long-run reputation to nurture, and at the same time, they wouldn’t want all these new services to draw away their customers. So, U-Haul tries to remain a top competitor to its alternatives without compromising on providing quality service.
Is U-Haul Actually Cheap and Better?
The word “Cheap” is subjective – it depends on who is asking and who is giving the reply; what might seem expensive for Mr. A may be extremely cheap for Mr. B.
That said, the notion of U-Haul being expensive or cheap is subjective. However, one thing is sure, and it is that the company offers more competitive prices than its alternative.
U-Haul advertises $19.95 as its base price for local rents and up to $40 for long-distance movements, but these prices are not standard; they are bound to change depending on many factors, including mileage, type of vehicle, and other reasons.
But then, no matter how much you pay with U-Haul, you’d have paid more if you went for a rental car.
Typically, U-Haul can save you over $1,000 than getting a rental car. More so, most car rental services won’t let you go out with any vehicle from their fleet if you’re not up to 25 years old, but with U-Haul, the age requirement is lower.
As said earlier, there are reasons why U-Haul remains the top choice for many Americans moving from one location to another.
What Makes Up The Final Charge You’d Pay For a U-Haul Rental?
1. The Standard Rental Fee
How much you get to pay as the actual vehicle rental fee differs based on the type and size of vehicle you choose.
The price ranges from around $19.95 and $29.95 to $59.00 or more, and it expires after 24 hours. So, if you’d be using the rented vehicle for more days, the price will be multiplied by that number of days.
2. Mileages
The miles you’ll run with the car are also calculated into your bill. More so, the cost per mile price differs based on the center you’re hiring from; however, the cost ranges from $0.69/mile to around $0.99/mile. If you’re making a long-distance move, the cost per mile may be reduced a bit, so you can save some bucks.
3. Insurance
U-Haul offers its own insurance coverage for drivers who have insurance that may not cover their rented U-Haul vehicle. You get to choose from various insurance coverage options, ranging from around $9 to $50 or higher, depending on the center you went to.
But, this insurance coverage is not mandatory; it is optional. However, it is advisable to get this add-on just in case things go south during your travel – that $20 insurance package will come in and save you a $10k+ repair expense.
4. Taxes
Of course, you will have to pay tax levies when you rent a U-Haul vehicle. Tax fees are from $1.00 – pretty cheap? Not really; that’s your environmental tax. The real “Rental Tax” is around 8 to 10 percent, which could be as much as $56 if your final price was $700.
Does U-Haul Charge Hidden Fees?
Yes, there are some fees charged by U-Haul that many customers are not aware of until after renting the vehicle.
For example, if you return the car dirty or with ¼ less fuel, you will be charged some fees for that. The actual amount differs based on various factors. Also, if you return the vehicle to a location you were not supposed to, you could pay additional fees.
What More?
If you were thinking, “Why is U-Haul so cheap?” Arguably, this post has clarified you on that; the company is not so cheap, and it’s not so expensive either (compared with what rental car services charge for movements).
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