How To Start An Auto Transportation Business
The active movement of people drives an increase in the demand for car transportation. If there are affordable auto transport companies, why would you want to drive your car? This trend is being noticed by many people. The most determined and daring are willing to not only notice this trend but also be part of it. You might be one of them. We will show you how to set up an auto transport company without any stress.
There is always a cost to a new beginning. You can save money by specializing in a particular method of transport. You can grow your business as it grows. It's worthwhile to choose one method at first, while also deciding on the market and target audience.
- Transporting by the open carrier is the most economical way. This is a popular choice for owners of mass-produced cars.
- Closed carriers are used for transporting expensive, collectible or old cars. It protects your car from rain, dust, branches, and other hazards. Protects cars from prying eyes. Closed carriers are also popular as old car haulers.
Three steps to start your auto transporting business
- For FMCSA approval, you will need to submit a CDL A design as well as an OP-1 Series form. A USDOT number is also required.
- Acquisition of equipment. Long service is guaranteed by the new carrier. It is however more costly. A vehicle that is in good condition can help you save money. This will reduce your costs by up to half.
- Insurance registration. Standard insurance is approximately $ 1,000,000 Customers will however want more guarantees. Consider adding cargo insurance.
Is car hauling a profitable business?
The outcome of any business depends on many factors. Particularly, the number of customers. Advertising is a must. If 7 or more cars are loaded onto the carrier, a trip will be profitable. We recommend that you begin looking for customers as soon as you have opened a car shipping. Focus on the customer benefits when advertising. You can ship a car by rail but you must pick it up at your destination. Carriers are capable of delivering door-to-door delivery. Only the client needs to pick up and give the transport.