It seems like everyone is looking to get into the car hauling business these days. While doing so may seem relatively straightforward, there’s more to this business than meets the eye.
So before you pull the trigger and begin purchasing your equipment, here are five things you didn’t think about:
How Do I Get Started in the Car Hauling Business?
The most important thing to help you get started in the car hauling business is experience. Usually, you’ll want to have a couple of years of experience hauling cars for a larger company. You need to ensure that you’re a good employee with a spotless driving record during this time.
From there, you can move on to purchasing your trailer. There are several types to choose from depending on what you want to do with your business. For instance, you can buy an enclosed trailer like a dry van for a relatively low price.
On the other hand, an auto hauler trailer will cost you a bit more — especially if you buy it new.
How Much Does a Car Hauling Business Cost?
But how much does it actually cost to start a car hauling business?
Most of your upfront costs come from your equipment. You may be able to get a good price on a used trailer for around $20,000 to $30,000.
You should expect to pay around $100 for a CDL if you don’t have one already. You also shouldn’t forget about insurance costs.
Finally, the cost of registering your new business is around $100 to $200, depending on your state and the type of business.
Two Types of Car Hauling Companies
You need to know about two types of car hauling companies: auto transport brokers and car carriers. Let’s explore each one in greater detail so that you can make the best determination for your business:
Auto Transport Brokers
If you’re not interested in operating and maintaining the trucks needed to haul goods and want to focus more on logistics, then consider being an auto transport broker.
Brokers work with many different carriers to get their clients the best prices and delivery timeframes.
However, brokers are also just a middleman in the hauling process that ultimately doesn’t have much control over the transportation of the goods.
Car Carriers
On the other hand, if you’re looking to hit the road yourself, then you may want to consider being a car carrier.
Carriers are the ones who are transporting the goods. However, carriers may only have one or two trucks to transport these goods. As a result, they often come with slower delivery times.
Slower delivery times are counteracted by better knowledge of trucking routes and direct communication with drivers regarding shipments.
A Checklist for Car Hauling Business Success
If you want to experience great success in the car hauling business, you need insurance, knowledge, permits, reputation, and labor relations.
Let’s dive deeper into each of these requirements so that you can get on the path towards success:
1. Insurance
The first thing you need for a successful car hauling business is insurance. This is a key component to not only establishing a successful business but also protecting your business. Not only will you need insurance to protect your equipment, but you will also need insurance to protect the cargo you’re hauling.
Most insurance companies want to see drivers with at least two years of previous driving experience. For the best insurance rates, it’s a good idea to get quotes from a few different companies before choosing the one that offers the best policy and rates.
2. Knowledge of the Industry
The second thing you need for a successful car hauling business is knowledge of the industry. Car hauling isn’t a business you want to get into with no knowledge or experience. It’s a unique industry with its own set of intricacies and complexities that need to be understood to achieve success.
And while this doesn’t mean that you have to be a hauling veteran to start your own business, any previous experience helps.
3. Permits
The third thing you need for a successful car hauling business rare the right permits. Specifically, you will need a commercial driver’s license or a CDL.
The process of obtaining a CDL is more intricate than obtaining your typical driver’s license. For starters, you will need to be at least 21 years of age. You will then need to submit proof of identity, Social Security number, and residency.
From there, you will need to submit a Medical Examination Report Form and a Medical Examiner’s Certificate Form. Next, you will need to pass both a vision test and a knowledge exam. After completing and passing all of these items, you must schedule and pass your vehicle’s road skills and driving examination. Finally, you’ll pay the necessary fees for the CDL, and you’re all set to hit the road!
Once you have the correct license, you should register your new hauling business as a sole proprietorship or an LLC. A sole proprietorship is the best option if you’re the sole owner. On the other hand, if you have partners, an LLC is the best setup.
4. Establishing a Good Reputation
The fourth thing you need for a successful car hauling business is a good reputation.
In any business, reputation is everything — this is especially true in the car hauling business since your customers are entrusting you with valuable cargo.
The best thing you can do to establish a good reputation is to have strong customer service skills. Always be professional and honest when communicating with customers about their shipments to come across as trustworthy.
5. Labor Relations
The fifth and final thing you need for a successful car hauling business is positive labor relations. It’s hard to run a car hauling business on your own, which means that you’re going to need to hire employees to help you out.
After hiring qualified employees, make sure that you treat them properly and establish a strong company culture to promote the success of your business.
How to Properly Price a Car Hauling Service
There’s a ton of variety in pricing across the car hauling industry. So how can you properly price a car hauling service? Here are some different factors that you need to take into account when determining the pricing for your car hauling services:
- Type of transport — open transport should cost more than closed transport
- Length of the trip — many carriers charge customers by the mile
- Time of year — you may need to charge more for hauling services during busy seasons than during slow seasons.
- Size and weight of the cargo — heavier and larger shipments should cost more than lighter and smaller shipments.
- Special handling considerations — many carriers charge more for special handling considerations such as refrigeration, expedited delivery, irregular shaped items, etc.
Car Hauling Agencies
If you like the fundamental aspects of car hauling but don’t want to deal with the intricacies of running your own business, you may want to consider working with a car hauling agency.
Car hauling agencies do all the heavy lifting for you — all you need to do is drive! That being said, you need to work with reputable and growing agencies.
RPM is one of the fastest-growing vehicle logistics providers in North America. We move over 50,000 loads a month for OEMs, dealers, auctions, fleet, and remarketing companies. From 3-car wedges to stingers and 9-car haulers, we accommodate all truck types.
Conclusion
Before you start your car hauling business, you need to think about these unexpected costs and responsibilities that come with the business. Running a car hauling business is a lot of work and definitely isn’t for everyone.
If you’re looking to drive for a carrier instead, then visit RPM. RPM offers 24/7/365 support with clear and easy booking with competitive pay. We will pay you in less than 72 hours!
Reach out today to see how we make our drivers’ and customers’ lives easier with our support and technology systems.
Sources:
Brokers vs. Carriers in Car Shipping | Move.org
How to Get a CDL (Commercial Driver License) in 2021 | Driving Tests
How Much Does It Cost to Ship a Car Across the Country? | Forbes
