Is the U-Haul Dealer Network Profitable?

If you’re in the process of searching for an additional revenue stream to add to your pre-established business, you may have stumbled across the U-Haul dealer network.

U-Haul, which is one of the largest storage and moving rental companies in the United States, provides services such as rental trucks, trailers, self-storage units, moving boxes and supplies. The company also offers its U-Haul dealer network, which provides small business owners with a U-Haul rental truck and trailer. The latter earns high commissions with no investment whatsoever.

While this opportunity may seem like a no-brainer, consider all the factors of the program before deciding if it’s really worth it.

Pros of Becoming a U-Haul Dealer

As mentioned, there is no financial investment required to become a U-Haul dealer. This is because dealers are not franchisees; they’re local affiliates. U-Haul describes its dealers as follows:

“They are simply small businesses that have committed a portion of their lot space for U-Haul equipment and a portion of their time to help meet the mobility needs of their neighbors,” the brand wrote.

As of August 2023, U-Haul said it is partnered with over 21,000 dealers across the U.S. and Canada through this program. As a result of the dealer network, U-Haul’s affiliates earn some of the highest commissions in the industry and pay a 21% commission across all of their product lines. Because there are no startup costs, the brand believes participants can see instant profits across all avenues of their business because the rental trucks also have the potential to increase foot traffic.

U-Haul’s website also lists the following benefits of becoming a registered dealer:

• Increase your profit and product line with discounted boxes and moving supplies
• Weekly commissions paid via direct deposits into any bank account
• Lower your existing small business costs with our discounted merchant fees
• Get the latest U-Haul news, view your commission statements and connect with other business owners like you via the online account center

Cons of Becoming a U-Haul Dealer

While joining the U-Haul dealer network does have its advantages, there are also some drawbacks to consider. One important factor is the potential impact on your available parking spaces. If you’re already working with limited space, becoming a dealer might mean fewer spots for your own customers to park.

While becoming a dealer doesn’t require a financial investment, it will require your time to handle paperwork and provide hands-on assistance to customers. The amount of business you may see can be influenced by your location. If you’re in an area where there’s high demand for moving and transportation services, you stand to benefit. However, if the demand is low, you might find it challenging to generate any sort of significant profit.

Ultimately, one of the biggest downsides of becoming a U-Haul dealer is the time and energy it could take away from your core business. By focusing on the logistics of rentals, customer service and paperwork, you’ll lose time that you could be spending on running a successful primary business.

Is It Worth it?

While there are advantages and disadvantages to becoming a U-Haul dealer, the key consideration is your personal preference. If you’re looking for an extra source of income, then it could benefit you. But there’s definitely a trade-off, as it will create added work and the possibility of diverting focus from your core business.

If you’re interested in learning more, you can apply to become a U-Haul dealer by clicking here.