The Best Car Hauling Business Plan | 2023

how-to-start-a-business hauling-cars

If you drive a truck, you may have nursed the idea of how to start a business hauling cars. Assuming control and starting your own business is a good start.

Moving vehicles from one place to another can be lucrative. Statistics estimate the US car trucking industry to be worth close to $11 billion.

Beginning a business demands experience, regardless of how much experience you have as a truck driver.

You can start your business hauling cars from home and eventually grow it to include a fleet of vehicles.

However, you will need to invest in a vehicle and get an operating license before talking about profits.

Thankfully, this step-by-step guide on how to start a business hauling cars, so stay on this article as we flow through together.

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What is a Car Hauling Business? 

Car hauling is the transportation of cars from one location to another. Drivers in this industry are responsible for loading each vehicle onto a specially designed trailer and ensuring the vehicles’ safety.

They must also ensure that the trailer complies with all weight restrictions and safety regulations.

Vehicle manufacturers and dealerships are typically not involved in the transportation aspect of moving vehicles.

Instead, the trucking industry handles this aspect of their business. A car hauling company essentially acts as a go-between for the shipper and the customer.

The term car hauling can also apply to moving a car to a new location for individuals who move to a new place.

How Does a Car Hauling Business Work? 

You have three alternatives when determining how to launch a car hauling business: working with a broker to locate loads, finding your own clients, or working for an auto transport firm.

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Pros & Cons of Owning a Car Hauling Business

In theory, owning a car hauling business sounds appealing, but are you prepared to shoulder the responsibilities?

Consider the advantages and disadvantages, and then decide whether you would be better off working on your own or with a reputable company.

Advantages 

  • Be your own boss
  • High profit margin
  • Build your business brand
  • Open trailers offer better visibility
  • A growing industry

Disadvantages 

  • High maintenance costs
  • Rigorous licensing costs 
  • Hard to get established
  • More responsibilities 
  • Unexpected expenses

How to Start a Car Hauling Business

Do you want to launch your own car hauling business? That dream could become a reality if you are a trucker with valuable experience.

You already have an advantage due to your years of safe driving. And we’re here to help you make that dream a reality.

We’ve created a checklist to help you launch your car hauling company.

You’re a good company driver with a two-year track record of dependability and over-the-road excellence.

If you’re also one of those who can’t stop staring at the truck on the next lane, the one with the 7-car carrier and the neatly stacked array of shiny, colorful vehicles, this is your best bet.

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10 Steps for Starting a Car Hauling Business 

Do you want to start a car hauling business but don’t know where to start? The best way to avoid legal issues or other problems is to take specific steps.

If you’re wondering how to start a car hauling business, here are 10 steps to take:

Step 1: Get Your CDL

Obtaining a CDL-A license is the first step in starting a car hauling business. The license will make it easier to obtain insurance, and the fees will be lower.

In addition to the CDL, you must obtain a standard “for-hire” authority to meet the state and federal legal requirements of the company.

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Step 2: Create a Business Plan

Starting a new car hauling company without a business plan is a recipe for disaster. For example, you must be aware of what you will be hauling, where you may locate consumers, your objectives, and how you want to expand the firm.

Your car hauling business plan will function as a guide to help you deal with unanticipated obligations and expenditures. You may want to seek professional assistance in developing the business plan to ensure its viability.

Step 3: Create Your Budget

Before starting any business, it’s critical to understand your total costs. They may consist of one-time, ongoing, and future expenses.

Do you understand where your working capital comes from, your daily operating costs, and how you plan to cover unexpected expenses? Making a budget will assist you in budgeting for these expenses.

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Step 4: Get Insurance Quotes

The cargo you transport in the car transportation industry is of considerable worth. Insurance companies are there to ensure you have enough coverage as a result.

Expect to carry $500,000 in cargo insurance along with $2 million in liability insurance.

Step 5: Learn How to Load and Unload Properly

It takes a lot of effort to load and unload an auto transport trailer. A lot of talent is needed to make sure everything works together as it should.

Each vehicle’s size and the order in which it should be unloaded must be taken into account by the driver.

Make sure you obtain experience in this important area of the field before beginning a car-carrying firm.

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You will require a number of permits before you can start your automobile transport service on the road:

  • UCR — Unified Carrier Registration fees
  • IFTA — International Fuel Tax Agreement taxes
  • IRP — International Registration Plan taxes 
  • HVUT — Heavy Vehicle Use Tax
  • DOT — Department of Transportation fees
  • MC Number — Assigned by the FMCSA

In order to avoid incurring expensive fines or having your car taken out of service, it’s critical to pay the payments on time.

Step 7: Purchase Equipment and Insurance

You have 30 days after obtaining your operating authority to purchase a truck and obtain insurance. If you do not follow these steps, the DOT may shut down your business.

Step 8: Set Up Contact Information

You can opt to work with a broker to get your firm started at first, but having a backup plan is always a smart idea.

Setting up a business email and website is an important step toward independence. When you generate leads, you will increase your revenue and establish yourself as a dependable and trustworthy car hauling company.

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Step 9: Sign Up for the Load Board

After the FMCSA has approved your authority, you must register for the load board. Brokers, dealers, and carriers use a load board. The board can be used to find and book loads for a fee.

Step 10: Get to Work

Keep your license, drive safely, and start earning money. You’ll make mistakes, but you’re off to a good start.

A Checklist to Car Hauling Business Success

Authority

Obtaining your authority to begin hauling cars is the same as obtaining your standard “for-hire” authority.

Simply select auto hauler as your commodity type. Don’t forget that part of the process of obtaining your operating authority includes meeting all federal and local/state legal requirements.

The Apex Startup Program can assist you with all of the paperwork filings. We make things simple for you!

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Equipment

You will require a car carrier trailer. Those will cost you money. For example, a used dry van in good condition would cost around $20,000.

A used 7-car hauler trailer in good condition would cost around $27,000. A brand new 7-car hauler trailer costs around $70,000 to $100,000.

Insurance

As a car hauler, your cargo is valuable. More insurance coverage, particularly cargo insurance, is required.

Carriers and owner-operators are required to carry $1 million in liability insurance and up to $250,000 in cargo insurance.

A car hauler will want to double that amount, with at least $2 million in liability and $500,000 in cargo insurance.

Extra cargo insurance is essential here, as brokers and shippers will want to see more coverage to protect that valuable load.

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How Do You Write an Auto Hauling Business Plan?

Write Your Business Plan

How do you write a car transport business plan? The same way you would write a business plan for any trucking company.

The same principles apply: where will you network to find customers? What are your goals? How do you intend to grow? What are your projected expenses and profits for your company? How do you intend to build a successful auto hauling company? Apex can also assist you here.

Download our “How to Write a Business Plan” guide and watch our business plan videos for in-depth, step-by-step pointers.

How to Write a Business Plan for Your Trucking Company Guide Cover Image
how to start a business hauling cars

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Prepare for the Risk

Remember that hauling seven or more cars can be lucrative. However, with a larger paycheck come greater risks, one of which is that you will most likely not be paid right away.

Apex freight factoring can help with this. Factoring your auto hauling freight bills can help you with your cash flow, especially since underpayment is common in the auto hauling industry.

If a car is damaged during the haul, or if the number of cars you are contracted to haul changes at the last minute, you may be underpaid. Apex provides credit checks on freight brokers for added security.

“Car hauling is riskier by nature,” says Dax Johnson, Account Executive at Apex Capital. “You must always pay attention to the weather, driving conditions, and where you are driving. All of this adds up to potential vehicle damage. You should always know who you are hauling for, but in auto hauling, the risks are magnified.”

Conclusion

If you write a good business plan and put in the necessary effort, hauling cars for a living can be profitable.

To ensure you receive the loads you want, keep your business organized, and have the help and direction you need in the early phases of your firm.

You might also want to consider partnering with a logistics company.

Frequently Asked Questions on How to Start a Business Hauling Cars

How Do Car Haulers Make Money?

Work with a load board that is experienced in moving cars. Repeat business is ensured by one happy customer bringing in more.

How Do I Start a Car Hauling Business?

Acquire the necessary tools, permits, and insurance, and gain expertise in loading and unloading vehicles. Make a business strategy next, and include information about where you will get your operating funds.

Can You Make Money Hauling Cars with a Dually?

Since you are only able to transport fewer vehicles over shorter distances than a truck would, you will need to be fiercely competitive.

How Do I Find Car Hauling Loads?

Where, then, can one discover loads that a car can haul? Online load boards have been the main resource for transporters looking for loads in recent years.

Load boards have become the industry norm for finding loads since the first one went live in 1999.

Is Car Hauling Profitable?

Car hauling can be a very satisfying career, although compensation for occupations might vary substantially.

The amount of money you can make as a carrier will vary depending on a number of factors, such as how long you’ve been in business, where you are, the price of gas at the time, and your level of competence in moving automobiles.

FAQs

How Do Car Haulers Make Money?

Work with a load board that is experienced in moving cars. Repeat business is ensured by one happy customer bringing in more.

How Do I Start a Car Hauling Business?

Acquire the necessary tools, permits, and insurance, and gain expertise in loading and unloading vehicles. Make a business strategy next, and include information about where you will get your operating funds.

Can You Make Money Hauling Cars with a Dually?

Since you are only able to transport fewer vehicles over shorter distances than a truck would, you will need to be fiercely competitive.

How do I find car hauling loads?

Where can one then find loads that a car can transport? In reality, in recent years, the primary source for carriers looking for cargo has been online load boards.

Since the first one went online back in 1999, load boards have evolved into the industry standard for locating loads.

Is car hauling profitable?

Car hauling can be a very satisfying career, although compensation for occupations might vary substantially.

The amount of money you can make as a carrier will vary depending on a number of factors, such as how long you’ve been in business, where you are, the price of gas at the time, and your level of competence in moving automobiles.

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