How To Make Money By Car Hauling
Car hauling is a lucrative business but it comes with many risks. It might be a smart idea to load low-cost cars first.
Car transporting isn't an easy job. Car hauling is a great job if you love the outdoors and the beautiful scenery.
You can make a lot of money by either starting your own auto hauling business or joining an auto transport company as a driver. To be profitable in car transport business, you need to be careful with your fuel expenses.
You may still have questions about the amount of money you can make, whether it is an easy job, how the market is doing, and how much money to get started.
All your concerns will be addressed today. These issues will be discussed, as well as the process of starting an auto-hauling business.
What is auto hauling? How does it work?
Auto hauling is a service that allows people to move their cars from one place to the next. This service is often used by car dealers, shippers, private car owners, and brokers to transport their cars to their destinations.
You get to know a job as a car hauler when you are in touch with shippers, brokers or car owners. Then, you can quote your rates taking into account multiple factors like how many cars need to be moved and how far they will have to travel. Once the deal is signed, you are responsible for transporting the cars to their destination.
If you have the right information and the patience to get into this business, you can start your own car hauling company. Even though this business can be very lucrative, it is important to learn everything you can about the business before you jump in.
We've provided a brief explanation of this business model, as well as numbers and requirements.
What is the Maximum Car Hauling Earnings?
The earning model you choose will determine how much money you make. If you start your own company, you could make a lot of money once you reach a certain level.
You are paid a fixed salary as an auto-hauler driver. This is based on your years of experience in the field.
The rates vary depending on the value of the cargo. You'll make more if your mileage is high and you can haul both intrastate as well as interstate cargo.
If you are an independent contractor and you rank among the top car-hauling drivers, you can easily make six figures per year by transporting expensive cars in enclosed containers. According to The Auto Haulers Association (TAHA), experienced drivers can easily earn between $75k-$110k annually.
Another scenario is that the drivers make money on the distance traveled, while brokers earn a fixed amount per vehicle. The broker can earn up to $200 per vehicle if the driver travels at least $1 per mile.
Affiliates can earn money through Move Car. When traffic from your site visits Move Car, you'll earn a commission.
How do you start an auto hauling business?
It is difficult to start and run a successful car hauling business that earns you a living. You must first be aware of all the legal and operational risks that car haulers face and how you can sustain yourself.
We have more than 20 years of experience in car shipping companies and we can help you understand the important steps to starting and maintaining a car transport company.
There are risks and precautions when you start an auto hauling business
Your insurance coverage should be higher for the more cars you haul. A typical amount value is approximately $2 million and minimum $0.5 million in cargo coverage.
As your business grows, be prepared to expand your coverage to transport more cars.
Unwelcome damage to your vehicle is a common risk. If your truck is damaged during a hauling trip, it's not possible to immediately start driving another truck. It is also a challenge to find the right match between your truck and trailer. This is a quick way to lose revenue and time.
Knowing the exact dimensions of the cars you plan to haul is just as important as knowing how much your trailer can hold. Experienced drivers will tell anyone that every inch counts when loading a truck.
It is important to work with reputable brokers. It is not a good idea to deal with every broker in the auto-hauling industry. They will compete with other brokers to win the job and reduce the cost they have to pay to the carriers, just like in other industries where they are involved. They will offer hauling contracts to any transport company with the necessary resources. They don't take into account the reputation and experience of the hauling company.
What do you need to start a business?
Once you are ready to start your auto-hauling company, you will need to immediately purchase a truck and trailer. These resources will be sufficient to transport the cars you plan to haul, as well as the vehicles that you have in your business model.
Registering to get a DOT Number from the US Department of Transportation and a Motor Carrier Number is the second critical requirement. This is required if you plan to transport your cargo within the United States.
Long-distance driving regulations should be known by both drivers and employees of the company. This will allow you to avoid legal problems while transporting your loads.
To get better clients and make more money, you need to identify your target market
The money you make will depend on who your target market is. The first step is to determine if you are able to transport multiple vehicles at once, or if you prefer to only transport one vehicle.
Your first target market is the most profitable. Here you will be looking for shippers and brokers who require multiple vehicles to be hauled in one trip. It's because you can deliver more cars and make multiples of the total number.
Second, mechanics and car enthusiasts often require two or three vehicles to transport from one location to another. You can find better rates and possibly make a profit by moving in another area. If your driving route is similar for multiple clients, you can handle them all in one trip. Marketing your services in the areas that are most appealing to your clients will result in higher profits.
Inform Your Clients About Your Auto-Hauling Rates
A typical vehicle moving company fee structure is determined by how many vehicles you have to transport and how many cars you drive. This is especially true if you are transporting multiple cars at once and working with brokers or shippers.
If you offer to transport single cars, it is important to pay for all the costs involved and the mileage. These costs include fuel and any immediate maintenance charges that you incur until you finish your journey and return to your base.
Extended rates can be offered for premium services, such as transporting enclosed cars or the best location in the trailer.
Load Board Registration Required to Get Clients
After all legal paperwork is completed, you can start looking for clients in the market. You must first identify all market segments, including shippers, brokers and private owners. This can be time-consuming and it is difficult to build your reputation on the local market.
If this is the case, centraldispatch.com could be your first choice to get started. This site is a load board that allows you to find loads to book, and earn money. This site is not only for auto haulers but also brokers, carriers, dealers, and other traders. To sign up, however, you will need to pay a monthly fee. Once you have completed all requirements, go to the website and get ready for your first car move.
Promote Your Auto Transportation Business
Your vehicle hauling business promotion is no different to any other trucking or driving service. It is important to meet the needs of your clients, and gather testimonials for your brochures or website.
Let your customers know that you are fully insured to protect their cargo. You can also keep a record of all accidents and display them on your website in order to gain trust from new clients.
To make more money in your car hauling business, grow it
A trucking company must generate more revenue than it expenses. You can easily do this in auto-hauling by transporting more vehicles at lower per-car rates. It would be a good idea to control your expenses.
You can increase repeat business by building trust with your customers. If you provide quality services and your clients need to transport their cars several times a year, they will call you back. Private owners are more likely to have repeat business and pay higher rates for high-quality services.
Investments and Expenditures for Starting and Running a Car Hauling Business
There are two main categories of initial investments and operating expenses for starting and running a car-hauling business: operational and capital.
To prepare your budget, you need to know the details of each section.
Insurance: Cargo hauling insurance covers the legal expenses as well as the monthly expense. Depending on your hauling capacity, the total cost for this section can be anywhere from $250k to $500k in coverage to $1 million to $2 in insurance liability.
Monthly insurance costs for a single carrier can range from $800 to $1400. This range can be considered a starting point, but it will change depending on how big your truck is, the car you haul, and what cars you need to move.
CDL: CDL (Commercial Driving License), although it is not a large part of your initial investment as it is a small amount, it is a mandatory expense since you can't drive any type of carrier without CDL. It is important to verify that all of your drivers, whether they are operators or hired, have received CDLs from the relevant authorities. The cost of CDL for one driver is usually $100.
Equipment you need: Depending on your business plan, you will need a truck or a trailer. A used truck and rig is a better choice if you are just starting out. These equipment are an immediate need and can run you between $15k and $150k. These are the starting prices. You will need to do some research to find the best option for your needs. You will need to budget for regular maintenance after purchasing vehicles. You will be protected from any unpredicted situation. If you don't maintain the truck regularly, it can lead to a loss.
Operating Authority: MC/USDOT registration costs Your company's operating authority is now called the USDOT pin. This is a consolidated registration number that can be used for both MC or USDOT. Although this registration comes at a substantial cost, it costs only $300.
Operational company expenses: After you have made the initial investment and are ready for your journey as an auto-hauler, you will need to create a budget that covers both fixed and variable monthly costs. Fixed payments include monthly insurance premiums and fixed business operations costs like salaries and software subscriptions. Variable expenses include gas costs, roodfood expenses, irregular maintenance costs, fuel taxes, and other taxes.
How to become an auto-hauler
After following the above steps, you will be the owner of the car-hauling company and responsible for car transportation. You can join the industry even if you don’t have the capital to purchase a truck or pay all of the expenses.
This process is similar to joining a company as an employee driver. You will need all required legal documents before you apply for a job.
If you have previous trucking experience and are familiar with the state traffic rules, then you can apply to Move Car for a driver's position and begin earning money right away.