For the many who might have wondered what the business of car transportation entails, this piece is for you. We at A-1 Auto Transport Inc. have been in business for over two decades. We are experts in the business, and who better to ask than the experts? We have all the information you need to understand the industry. This information is important for those interested in starting such a business and everyday clients. An overview of the car transportation business paints a vague picture of what to expect.
Types of auto transport businesses
There are different types of auto freight businesses. They don’t all work in the same manner. There are two major categories of sedan shipping businesses: brokerage and carriers.
Brokerage is the business of being a middleman, a facilitator between the buyer of a service and the seller. Regarding the automobile shipping business, a brokerage firm does not actually do the transportation. They just have websites that “look like they ship sedans.” In a real sense, they operate by fetching information about firms that do the actual vehicle delivery, researching them, and “connecting” you to the carrier.
Most vehicle shipping websites on the internet are brokers. They have really classy and convincing websites with all the relevant information about the best and worst car transportation carrier firms. They make this information available on their websites so clients can ask for hauling quotes.
They work by allowing clients to seek ride-moving services from them. The broker then provides the client with a convincing quote. It is at this point that the client reserves a dispatching appointment. The broker then posts the shipment reservations to actual carriers, who will do the actual hauling. The brokers will pay the deposit for the client to the hauler company and recover the amount when the client settles the rest of the bill at the point of delivery.
Vehicle transfer brokerage is a great business. Brokers make money by acting as facilitators. The load of the work is passed on to the carrier, and brokers escape the heavy lifting. The downside, however, is that brokers have to part with some amount of the whole payment, as the movers have to be paid the lion's share. Brokerage incentives work in almost the same manner as commissions.
Carrier companies are the car transportation businesses that perform the actual shipping. Carriers perform the heavy task of hauling the vehicle from point A to point B. Hauler companies can either source their orders from brokers or on their own from clients visiting their website. A-1 Auto Transport Inc. is a handlers company. Deliverer companies can offer sedan transport services domestically and/or internationally.
Types of carriers
In the car hauling business, there are three types of carriers: enclosed haulers, open trailer movers, and hybrid transporters.
- Enclosed Delivers: These types of haulers deliver sedans in a closed cargo container. Closed containers protect your vehicle from any external factors, including rain, sunlight, dust, and possible debris. They are ideal for transporting antique cars, collectors’ items, automobiles, and luxurious car race vehicles. Enclosed transporters
- Open Trailer Transporters: These handlers provide their services in trailer trucks with open “loaders.” These are types of open containers in which automobiles are shipped in. Open trailer haulage is the most common as it is cheaper than enclosed haulage. Vehicles are, however, exposed to external elements like moisture, direct sunlight, dust, and possible debris. The vehicles are secured onto the frames of the loaders, so stability is ensured. Open Haulage is also common as it allows for room to deliver as many as 10 to 15 vehicles in one loader.
- Hybrid Movers: This type of car transportation business offers both enclosed and open trailer services. Due to their options, Hybrid Dispatchers have a wider market to enjoy.
Types of Delivery Services
There are two main shipping options.
- Door-to-door: This dispatching option stipulates that the carrier company picks up the vehicle at the client's home or office and delivers it to a specific address as agreed.
- Terminal-to-terminal: This delivery option stipulates that a sedan is picked up from a designated location, transported to a designated location, and dropped off at a designated location.
How to determine the best option for you
Budget is the primal determinant. A small budget will leave you with no option but to opt for open trailer transport. Preference will dictate whether you shall opt to use a broker or a carrier.