Understanding the car hauling industry can be difficult due to a countless number of moving parts. The good news is that we here at RPM know the car hauling industry forwards and backward — and we are here to help provide you with the same level of understanding thanks to this complete guide:
What Is a Car Hauler?
A car hauler is someone who primarily transports vehicles using trailers. There are many different types of car hauling for a variety of different industries:
- OEM:: A load needs to be transported from the original equipment manufacturer (OEM) to dealerships, where they can then be sold to consumers. Managing high levels of inventory with speed is essential when it comes to OEM car hauling.
- Retail: Vehicle cargo at dealerships may need to be sent to other locations or otherwise rearranged to free up space for an incoming vehicle shipment.
- Fleet management: Vehicles within corporate fleets need to be managed and maintained using car hauling. For instance, a vehicle gets taken out of service, gets damaged and needs to be repaired, or reassigned to a different employee across the country — this is all part of fleet management.
- Rentals: Rental vehicles often need to be rearranged and redistributed to meet ever-changing demand from consumers. For instance, rental cars may need to be shipped to Florida during the winter to meet the demand from Snow Birds.
- Remarketing: Remarketing vehicles involves selling off used cars that come from rental or corporate fleets.
- Auctions: Oftentimes, vehicles are remarketed through actions where people bid on vehicles, and the highest bid wins. It can be difficult to keep up with different auctions going on in various locations, which is why efficient car hauling is important.
- POV: Privately owned vehicles (POV) involve shipping a single vehicle that’s owned by an individual rather than a company. For instance, say someone gets a new job and has to move across the company.
They would need a POV hauling service to transport their vehicle from their old home to their new one.
How the Auto Transport Industry Works
To understand how the car hauling industry works, you need to know about the different types of car transport company, namely open car haulers and enclosed car haulers.
What Are Open Car Haulers?
Open car haulers are completely open on the sides. These haulers are usually double-deckers to maximize the number of cars that can be hauled simultaneously. Since more cars can be shipped on a single trailer, this method of transport is one of the most affordable. Additionally, more open car trailers are on the road, again contributing to a lower price point.
That being said, since cars are exposed to the elements in an open car hauler, they can be affected by severe weather or even road debris along the way. Furthermore, it’s likely that vehicles arrive at their destination dirty and in need of a wash before being sold.
So if you’re looking for a safer and more secure method of transport, then you may want to consider an enclosed car hauler.
What Are Enclosed Car Haulers?
An enclosed car hauler is fully enclosed. These haulers are designed to haul one vehicle at a time — usually a valuable or antique vehicle that warrants additional protection. As a result, enclosed car haulers are able to protect vehicles from weather, dirt, and debris.
Additionally, car haulers often offer a higher level of service with enclosed car transports with constant communication and higher levels of insurance protection.
On the other hand, enclosed car transport can be incredibly expensive since only one vehicle can be transported at a time. Furthermore, enclosed carriers are heavier, which translates into higher fuel costs. However, if you’re willing to shell out the money for more protection and better service, enclosed car transport might be the right option for you.
Two Types of Car Hauling Companies
If you’re looking for a car hauler, you have two different options. You could opt to work with an auto transport broker, or you could opt to use a car carrier. Here’s what you need to know about each of these options so that you can make the right choice:
Auto Transport Brokers
Auto transport brokers act as go-betweens between you, the client looking for an auto transport, and auto transport companies. These companies don’t actually own any trucks themselves; instead, they outsource to partner companies.
Brokers have partnerships with several different auto transport companies and will find a company, negotiate a rate, and finalize the details for you. Working with an auto transport broker comes with both pros and cons. Here are some of the pros:
- Working with an auto transport broker gives you access to a variety of different services from different companies with different rates so that you can choose the option that best meets your needs.
- As a result, working with an auto transport broker may be able to help you get the best rate since you’re comparing multiple different companies and have professionals negotiating on your behalf.
- Using an auto transport broker takes a lot of the work out of your hands since they do all the research and heavy lifting for you. So if you’re too busy to spend hours researching different companies, reaching out for quotes, and negotiating rates, then you might want to consider working with an auto transport broker.
And here are some of the cons:
- Working with an auto transport broker may come with unexpected price increases. So although it might seem like you’re getting the best rate, the company could show up to transport your cars and essentially force you to pay a higher price.
- Since you’re working with an intermediary rather than directly with the company, communication can sometimes be challenging since it’s indirect. Instead of contacting the hauling company directly, you reach out to the broker, who then reaches out to the company. This convoluted communication process can take time and delay the car hauling process.
- Some brokers do not have the best customer service. Before you decide to work with a broker, make sure that they have positive customer reviews that indicate that they are a trustworthy and reputable hauling partner.
Car Carriers
On the other hand, you can choose to work directly with car carriers to haul your vehicles. Unlike brokers, carriers own trucks that they use to transport your vehicles. They also employ drivers to get your vehicle from point A to point B.
Just as with brokers, there are both pros and cons to working with car carriers. Here are some of the pros you should consider:
- Working with a car carrier allows you to cut out the middleman, which means that you can have more direct communication with the driver who is going to be transporting your vehicles. This often simplifies the process and gives you peace of mind.
- Working with a car carrier might provide you with a more accurate quote since there’s no room for miscommunication along the way that may result in you being charged more at pick-up.
And here are some of the cons:
- Working with a car carrier may come with a higher price since the carrier isn’t actively competing with other companies for your business. That being said, many car carriers offer price-matching if you get a better quote from another company.
- Working with a car carrier may limit the types of services available to you. If you need a specialized hauling service, then you might not be able to find what you’re looking for if you contact brokers individually.
Finding the Right Car Shipping Company
It’s important to find the right car shipping company since you’re entrusting them with a particularly valuable asset — your vehicle. You need to do your due diligence before signing on the dotted line with a car shipping company. But how can you find potential car shipping companies in the first place? Start by asking friends, family members, or colleagues if they have any recommendations.
If you can’t get any personal recommendations, the Internet is the next best place to look. This is because strangers can leave recommendations for car shipping companies in the form of reviews. So make sure that any company you’re considering has good reviews that reflect a history of great customer service.
You also need to make sure that the companies you’re considering offer the services you’re looking for. For instance, if you’re looking for enclosed transport of an antique vehicle, you might need a specialized company. On the other hand, if you’re looking for an open transport of multiple vehicles, you might need a different company.
Once you’ve found a list of potential companies with good reviews that offer the service you’re looking for, you can reach out for quotes. Be prepared to provide them with information about the vehicle(s) you’re shipping, where it’s coming from, where it’s going, and when you need it shipped.
Based on the quotes you get, you can further narrow your list of contenders. At the same time, you need to keep in mind that the lowest price doesn’t necessarily mean that it’s the best choice. In fact, a lower price could indicate a lower level of service.
Before making your final decision, you need to read the fine print. Make sure that the carrier is insured. Make sure that they are certified. Check their safety record. You should have all the information you need to choose the right car shipping company based on all these factors.
How a Car Hauling Company Is Paid
When working directly with clients, car haulers get paid directly from clients. However, if a broker has contracted out a car hauling company, the client pays the broker, who then pays the hauler.
The broker, of course, retains a portion of the payment for their services. This portion varies depending on the broker and is usually negotiated ahead of time.
Conclusion
If you’re looking for a car hauling company that can meet all of your car hauling needs ranging from OEM to retail to rentals and everything in between — RPM is the answer you’ve been searching for. RPM delivers thousands of units a month thanks to our expansive network of over 30,000 independent carriers.
Reach out to us for a quote today to see how we can meet your car hauling needs.
Sources:
Open vs. Enclosed Car Shipping | Retirement Living
Brokers vs. Carriers in Car Shipping | Move.org
How to Ship a Car | Edmunds
