Car Transport Companies Pass Extra Costs on to Consumers
June 30th, 2008
Car Transport Companies pass extra costs on to consumers. As the rise of in prices of fuel hits America, Car Transport Companies are feeling the pinch and passing the costs on to consumers. It used to cost about $500 to have a car delivered to Los Angeles form the East Coast, now only a year later the costs have risen to $750. That’s a 50% increase of the price in less than one year. When examining the cost in fuel which has risen approximately 25% in the last year, one might wonder why the steep increase in prices from Car Transport Companies. The answer is in the profit margins. Increased fuel costs does affect the price to move a car cross country directly but there are indirect costs that also are being passed on to the consumer. The Car Transport Companies now must pay their employees more money so they can afford to work; it cost more for repair parts, fees from states, and increased taxes and tariffs. This results in lower profit margins and regrettably higher prices.
Entry Filed under: Autos
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