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How to start an auto transport business

How to start an auto transport business

Active movement of people stimulates an increase in demand for transportation of cars. Why do you drive a car yourself if there is an affordable auto transport company? Many people notice this trend. However, the most daring and decisive are ready not only to notice, but also to become part of this business. Perhaps you are one of them. If so, then we will tell you how to start an auto transport business without stress and problems.

Auto transporting business:

A new beginning is always a cost. In this case, you can save by specializing in a certain method of transportation. As your business grows, you can expand it. However, initially it’s worth choosing one method, at the same time deciding on the market and the target audience.

  • Open enclose is the most affordable way to transport. It is in demand among owners of mass models of cars.
  • Closed carrier is used to transport expensive, collectible and old cars. Protects the car from dust, rain, branches and other things. Also hides vehicles from prying eyes. In this regard, closed carriers have gained popularity as old car haulers.

3 steps to your own auto transporting business

  • CDL A design and OP-1 Series form for FMCSA approval. You will also need to get a USDOT number.
  • Acquisition of equipment. The new carrier is a guarantee of long service. However, it is more expensive. You can save by buying a vehicle in good condition. This will cut costs by more than half.
  • Registration of insurance. Standard is estimated at $ 1 million. However, customers will want to see more guarantees. Therefore, pay attention to additional cargo insurance.

Is car hauling a good business?

As in any business, the outcome depends on a number of settings. In particular, on the number of customers. Therefore, advertising efforts are a necessary measure. A trip is profitable if 7 or more cars are loaded on the carrier. Therefore, we recommend that you start looking for customers immediately after you open a car shipping. In advertising, focus on customer benefits. For example, a person can ship car by rail, but on arrival you will have to pick up the car yourself. Carriers are capable of delivering door-to-door delivery. The client only needs to give and pick up the transport.

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