A work truck is often a handyman's largest overhead item, and its true monthly cost includes payment or depreciation, insurance, fuel, maintenance, tires and downtime. Add up your own numbers and include them in your hourly rate or trip charges.
Monthly cost categories
| Category | What to include |
|---|---|
| Payment or depreciation | Loan or lease payment, or the value you lose each year |
| Insurance | Commercial or business-use auto coverage |
| Fuel | Monthly average from receipts |
| Maintenance | Oil, tires, brakes, repairs |
| Registration and fees | Annual costs divided by 12 |
Actual figures depend heavily on the vehicle, your area and how many miles you drive. Pull the last 12 months of receipts and compute the average. Worked example format: total yearly vehicle cost / billable hours = vehicle cost per billable hour.
Buy or lease
Buying builds equity but ties up cash. Leasing may offer lower payments but has mileage limits and wear rules. Ask your CPA how each affects your taxes.
Tool storage
Shelving, locking boxes and racks protect tools from theft and weather. Count them as part of vehicle cost.
Wrap or no wrap
Branded vehicles advertise your business, but wraps cost money. Compare the cost with other marketing.
Use it in your pricing
Include vehicle costs when you calculate your rate; see hourly rate guide. Track mileage and fuel, and confirm vehicle deduction rules at irs.gov. See tracking expenses.
FAQ
How much does it cost to run a handyman truck?
It depends on the vehicle and miles. Calculate yours from receipts for payment, insurance, fuel, maintenance and fees.
Should I lease or buy a work truck?
Compare total cost, cash flow and tax effects with your CPA.
Can I deduct my truck?
Often partially or fully for business use, subject to IRS rules. Confirm at irs.gov.
Is a vehicle wrap worth it?
It can generate calls, but compare the cost with other marketing.