Auto-Hauling: How to Make Money by Car Hauling?

Car hauling may be lucrative, but it comes with risks. So, it would be a good idea to start by loading low-cost cars.

Besides, being a vehicle transporter is not even a hassle-free job. However, if you're interested in enjoying the natural landscapes throughout the countryside, moving could be your best fit as a job.

Whether you start your own car carriage business or join an auto transport company as a hauler, you'll earn a lot of money. However, staying profitable in your auto transportation industry means being careful about fuel expenses.

Despite this, questions may arise about how much money you will make if it is an easy job, the market's condition, and how much money you will need to get started.

We'll address all your concerns today. We will discuss these and also focus on starting auto-hauling corporations.

So, read on:

What is Auto Hauling and How It Works?

Auto hauling is a car shipping service that helps people move their cars from one location to another. Motorcar dealers, brokers, shippers, and private automobile owners usually purchase this service to transport their vehicles to their desired locations.

As a hauler, you contact shippers, brokers, or car owners to learn about a job and quote your rates. You consider multiple factors, such as the number of cars to be moved, miles to be traveled, etc. Once your deal is done, you're responsible for carrying the cars from the pickup point to the destination.

You can start a car logistics business from scratch with the correct information and patience to enter this industry. However, even if this firm is lucrative, you must know everything about starting this corporation instead of jumping in without any information.

Below, we've explained this business model briefly, along with numbers and demands.

So, keep reading.

How Much Money Can You Make Through Vehicle Moving?

The amount of money you will make can vary depending on your chosen earning model. For example, if you set up your own business, you can earn a lot of money once your company succeeds.

As an auto-hauler driver, you're paid a fixed salary that the company sets. In this case, you earn a certain amount based on years in the field.

Generally, the rates range from $300 to $700 per car, depending on how valuable the cargo is. Of course, you'll earn more if you drive a large number of miles and if you haul both intrastate and interstate.

When you work as an independent contractor and are ranked among the top car-hauling drivers, you will make almost six figures a year transporting one or two expensive cars in enclosed containers. According to The Auto Haulers Association, experienced drivers can easily make between $75k and $110k per year.

In another scenario, the carriers make money based on the miles traveled while the brokers take a fixed amount per car. If the driver makes up to $1 a mile, the broker will earn up to $200 per vehicle.

You can earn money by working as an affiliate for A1autotransport. You'll earn a commission when traffic from your website visits A1autotransport.

How to Start a Logistics Business?

It isn't easy to start and operate a car-hauling business successfully and earn money. First, you must know the legal and operational risks and sustain yourself as a car hauler.

From our over twenty years of experience as a car shipping company, we've explained the significant steps to starting and maintaining a transportation company.

Risks and Precautions For Conveyance Bussiness

The more cars you're hauling, the more your insurance coverage should be. The typical value includes about $2 million in liabilities and a minimum of $0.5 million in cargo insurance.

Be ready to increase your coverage as your business expands to deliver more cars.

A common risk is any unwelcoming damage to the vehicle. For example, if your truck breaks down during a hauling trip, you can't immediately resume driving with another truck. Further, finding the best match for your new truck and trailer is a different exercise. In short, that's a quick loss of revenue and time.

Further, knowing the detailed dimensions of the cars you're going to haul is as essential as knowing the actual loading capacity of your trailer. Most experienced drivers will tell you that every inch matters when you load your truck fully.

Working with excellent and reputed brokers is also a big point to consider. Dealing with every broker in the industry isn't a good idea in the auto-hauling business. Like in other companies where brokers are involved, they will bid the lowest to win the task and cut the price they must pay the carriers. These brokers will give hauling contracts to any transport company with the resources. They don't consider the experience and reputation of the hauling company.

What Do You Need To Start a Business?

First, you must immediately buy a truck and trailer once you're ready to start your auto-hauling firm. These resources should be able to cover the capacity of the number of cars you've planned to haul as per your business model.

The 2nd critical need is the registration to obtain a DOT number from the US Department of Transportation and an MC (Motor Carrier) Number. The latter is necessary only to deliver your cargo to interstate locations.

Company personnel and drivers should also be aware of all the long-distance driving regulations set by the state. This will help them avoid any legal mishaps while delivering their loads.

Find Your Target Market to Get Better Clients and Earn More Money

Finding the correct target market affects your earnings. So, the first step is to decide whether you can deliver multiple cars at once or prefer to look for people who want one or two vehicles transported.

The first target market is more profitable, where you'll be looking for clients such as shippers or brokers who need several vehicles hauled in a single trip. But again, this is simply because you deliver a larger number of cars and make multiples of the total number of cars.

Secondly, mechanics or car enthusiasts usually require one or two vehicles to be transported from any location to their garage or for any car show. It would be best to look for better rates here, and transporting in another region can probably result in a profitable deal. You can also handle multiple clients in a single trip if your driving route is the same for them. In short, better profits are achieved by marketing your services in areas where your ideal clients are.

Tell Your Clients About Your Rates

The typical fee or charge structure for a vehicle moving business is based on the number of miles traveled and the number of cars driven. This structure works best if you haul multiple cars in one trip and work with relevant shippers or brokers.

But if you're offering to move single cars, you must cover the expenses involved in each trip and the charges for the miles you're traveling. These expenses include fuel and immediate maintenance charges until you complete your journey and drive back to your base.

You can also offer extended rates for premium services such as transporting enclosed vehicles or the best position in the trailer.

Sign up for Load Board to Start Getting Clients

Once all the legal work has been done, you're ready to explore the market for clients. First, you must identify all the market areas, such as shippers, brokers, and private owners. This exploration can take time, and building your reputation in the local market is a challenge.

In this scenario, centraldispatch.com can be your first option to get started. This website is a load board where you can find loads to book and start earning money. This site is not only for auto haulers but also for brokers, carriers, and dealers. However, you must pay a small monthly membership fee to sign up. So, head over to the website as soon as you complete all the other requirements and are ready for your first car moving trip.

Promote Your Business

Promoting your vehicle hauling business is no different from promoting any trucking or driving service. You must fulfill your client's demands and collect good testimonials to display on your website or brochures.

Convey the transportation area coverage to your market and let them know that your company is fully insured to cover the value of their cargo. In addition, you can maintain the history of your accident-free trips and display them on your website to build the trust of new clients who are contacting you for your services through your website.

Growing

As a rule of thumb, any trucking business must generate more revenue than its expenses. You can do that easily in auto-hauling by transporting more cars at better per-car rates. But, of course, it would help if you also keep your expenses in control.

Building a better trust with your current customers can help you grow in a repeat corporation. For example, if you're providing quality services to your clients and have regular needs for transporting their cars multiple times a year, they'll call you back whenever required. Repeat business models usually come from private owners who pay premium rates for high-quality services.

Investment and Expenditures

Initial investments and operational expenses in starting and running a car hauling business are divided into different categories.

You need to be aware of each section to prepare your budget.

Insurance: Cargo moving insurance is the legal and monthly expenses required for the initial investment. The total amount needed for this section is usually $250k to $500k in coverage and $1 million to $2 in insurance liabilities, depending on your company's carriage capacity.

Monthly insurance expenses for a single carrier usually range from $800 to $1400. This range can be considered a base amount that changes depending on the truck, car hauling capacity, and types of cars you must move.

CDL: Although CDL (Commercial Driving License) isn't a big part of the initial investment, being a meager amount, it's a mandatory expense as you cannot drive any carrier without a CDL. You must confirm that all your hired drivers have obtained CDL from relevant authorities, even as an operators. CDL for one driver usually costs $100 for the complete process.

Equipment You Need: Depending on your business plan, you need a truck and a trailer. A used truck and rig can be better if you start for the first time. This equipment is an immediate requirement and can cost anywhere between $15k to more than $150k. This is the base range, while you need to research the market to check the best available option depending on your desired auto-hauling capacity. After buying a vehicle, you must also estimate and decide on a monthly budget for regular truck maintenance. This budget will keep you safe from any uncertain situation, which can eventually be a loss if you're not taking care of consistent maintenance.

MC and USDOT Registration Costs from Operating Authority: MC and USDOT registrations are mandatory and have legal importance, just like CDL. Your company's operating authority is now called the USDOT pin, a consolidated registration number for both MC and USDOT. The total processing fee for these registrations is also a significant expense but is only about $300.

Operational Company Expenses: Once you've made all the initial investments and are ready to kick off your journey as an auto hauler, you must prepare a budget for fixed and variable monthly expenses for running your business. Fixed payments usually include your monthly insurance and fixed corporation operation costs such as salaries and monthly software subscriptions. The variable expenses will include gas charges, road food expenses, irregular maintenance, fuel, and other taxes.

How to Become an Auto-Hauler

If you follow all the above steps to start a car-hauling business, you'll be an owner and responsible for car transportation. However, you can still join the industry as a carrier if you don't have enough capital to buy a truck and bear all the expenses.

All this process is more like joining a company as a driver, and you need to possess all the required legal documents before applying for a job.

However, if you already have trucking experience and know the state traffic rules, you can apply for a driver's post at a1autotransport and start earning money immediately.