car hauling business plan

Car Hauling Business Plan Template

Written by Dave Lavinsky

Car Hauling Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their car hauling companies.

If you’re unfamiliar with creating a car hauling business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a car hauling business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Car Hauling Business Plan?

A business plan provides a snapshot of your car hauling business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Car Hauling Business

If you’re looking to start a car hauling business or grow your existing car hauling company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your car hauling business to improve your chances of success. Your car hauling business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Car Hauling Businesses

With regards to funding, the main sources of funding for a car hauling business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for car hauling companies.

Finish Your Business Plan Today!

How to write a business plan for a car hauling business.

If you want to start a car hauling business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your car hauling business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of car hauling business you are running and the status. For example, are you a startup, do you have a car hauling business that you would like to grow, or are you operating car hauling businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the car hauling industry.
Discuss the type of car hauling business you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of car hauling business you are operating.

For example, you might specialize in one of the following types of car hauling businesses:

Long-distance car hauling : this type of car hauling company typically specializes in cross-continental and interstate trucking transportation of automobiles.
Local car hauling: this type of car hauling company typically involves trucking transportation of autos from rail yards to their final destination in the immediate vicinity.
Ship transport: this type of car hauling company includes coastal, Great Lakes, and deep-sea transportation of automobiles.

In addition to explaining the type of car hauling business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of cars delivered, the number of transportation contracts signed, reaching X number of clients served, etc.
Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the car hauling industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the car hauling industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your car hauling business plan:

How big is the car hauling industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential target market for your car hauling business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your car hauling business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: auto dealerships, car rental companies, wholesalers, and end users.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of car hauling business you operate. Clearly, individuals would respond to different marketing promotions than car dealerships, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Car Hauling Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other car hauling businesses.

Indirect competitors are other options that customers have that aren’t directly competing with your product or service. This includes companies with in-house transportation services, or individuals who haul their own vehicles. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

What types of customers do they serve?
What type of car hauling business are they?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you provide rapid delivery options?
Will you offer services that your competition doesn’t?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car hauling business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of car hauling company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide long-distance hauling, or local hauling?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your car hauling company. Document where your company is situated and mention how the site will impact your success. For example, is your car hauling business located near a busy port or railroad? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your car hauling marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in local papers, radio stations and/or magazines
Reach out to websites
Distribute flyers
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your car hauling business, including answering calls, negotiating contracts, coordinating deliveries, determining routes, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to deliver your Xth load of cars, or when you hope to reach $X in revenue. It could also be when you expect to expand your car hauling business to a new city or region.

Management Team

To demonstrate your car hauling business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing car hauling businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a car hauling business or successfully running a transportation company.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you use enclosed trailers to haul one or two high-value cars at a time, or will you use an open car carrier to haul nine cars at a time? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your car hauling business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a car hauling business:

Cost of equipment, tires, and fuel
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a map of the routes you frequent.

Writing a business plan for your car hauling business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the car hauling industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful car hauling business.

Car Hauling Business Plan Template FAQs

What is the easiest way to complete my car hauling business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your car hauling business plan.

How Do You Start a Car Hauling Business?

Starting a car hauling business is easy with these 14 steps:

Choose the Name for Your Car Hauling Business
Create Your Car Hauling Business Plan
Choose the Legal Structure for Your Car Hauling Business
Secure Startup Funding for Car Hauling Business (If Needed)
Secure a Location for Your Business
Register Your Car Hauling Business with the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Car Hauling Business
Buy or Lease the Right Car Hauling Business Equipment
Develop Your Car Hauling Business Marketing Materials
Purchase and Setup the Software Needed to Run Your Car Hauling Business
Open for Business

Learn more about how to start your own hauling business .

Don’t you wish there was a faster, easier way to finish your Car Hauling business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how a Growthink business planning advisor can create your business plan for you.

How to Start a Car Hauling Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on January 31, 2022 Updated on May 7, 2024

Investment range

$6,950 - $14,600

Revenue potential

$180,000 - $900,000 p.a.

Time to build

1 – 3 months

Profit potential

$130,000 - $180,000 p.a.

Industry trend

If you’re a truck driver, you may have thought about taking control and starting your own business. The US car hauling industry is worth nearly $11 billion, so there is money to be made shipping cars from one place to another. You’ll have to get a truck and an operating license, but you should get an excellent return on that investment. You can start by running your business from home, and later grow your company with a fleet of trucks.

No matter how much truck driving experience you have, however, you can’t start a business without some business savvy. Luckily, this step-by-step guide lays out all the ins and outs of a car hauling business, getting you ready to launch your new company.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an auto transport business has pros and cons to consider before deciding if it’s right for you.

Independence – Work on your own, running your business from home
High Profit Potential – Make $300-$700 per car hauled
Travel – Interstate hauling presents opportunity to see new places
Licenses Needed – CDL license and operating authority are required
High Startup Costs – Large trucks don’t come cheap

Car hauling industry trends

Industry size and growth.

Industry size and past growth – The US vehicle shipping services industry is worth nearly $11 billion.(( https://www.ibisworld.com/industry-statistics/market-size/vehicle-shipping-services-united-states/ ))
Growth forecast – The market is recovering from the pandemic slump and expected to grow more than 3% in 2022. It is projected to grow further through 2026 as the economy improves, boosting demand for vehicles.(( https://www.ibisworld.com/united-states/market-research-reports/vehicle-shipping-services-industry/ ))
Number of businesses – More than 4,000 businesses in the US provide vehicle shipping services.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/vehicle-shipping-services-united-states/ ))
Number of people employed – The industry employs more than 48,000 people.(( https://www.ibisworld.com/industry-statistics/employment/vehicle-shipping-services-united-states/ ))

Trends and challenges

Trends in the car hauling industry include:

Auto sales are expected to increase in the near future, which means more cars will need to be hauled from place to place.
Car haulers are moving toward more environmentally friendly auto carriers with lower carbon emissions.

Challenges in the car hauling industry include:

Rising fuel prices are forcing car haulers to increase prices to keep profit margins high.
Delays in car manufacturing due to supply chain issues cause a slowdown for the car hauling industry.

What kind of people work in car hauling?

Gender – 97% of auto haulers are male.(( https://www.zippia.com/auto-hauler-jobs/demographics/#gender-statistics ))
Average level of education – Nearly 7 in 10 auto haulers completed high school.(( https://www.zippia.com/auto-hauler-jobs/education/ ))
Average age – The average age of auto haulers is 40+ years old.(( https://www.zippia.com/auto-hauler-jobs/demographics/#age-statistics ))

How much does it cost to start a car hauling business?

Startup costs for a car hauling business range from $7,000 to $15,000. The largest expense is a down payment on a 7-car hauler trailer, which can run from $35,000 used to $70,000 or more for a new one.

How much can you earn from a car hauling business?

Typically, you can charge $300 to $700 per car, but this can be much higher for long-distance hauls or expensive cars. These calculations will assume $500 per car. Your profit margin after fuel and maintenance should be about 70%.

In your first year or two, you could do one 7-car haul per week, bringing in about $180,000 in annual revenue. This would mean a tidy profit of nearly $130,000, assuming that 70% margin. As you expand your fleet sales could climb to 5 hauls per week. At this stage, you would rent a commercial space and hire drivers and staff, reducing your margin to 20%. With annual revenue of over $900,000, you’d still make a cool $180,000.

What barriers to entry are there?

There are a few barriers to entry for a car hauling business. Your biggest challenges will be:

Experience – You need to be an experienced, licensed truck driver
Funding – You’ll need the down payment on hauler and qualify for financing

Related Business Ideas

How to Start a Towing Business

How to Start a Hot Shot Trucking Business

How to Start a Trucking Business

Step 2: hone your idea.

Now that you know what’s involved in starting a car hauling business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research car hauling businesses in your area to examine their services and price points. You’re looking for a market gap to fill. For instance, maybe the local market is missing a long-distance car hauler.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as used cars.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services and type of hauling

You need to determine whether you want to do interstate hauling or local hauling. You’ll also need to decide whether you want to haul just multiple loads for dealers or ship individual cars for consumers.

How much should you charge for car hauling services?

Car hauling prices range from $300 to $700 per car, but these prices could be higher for long-distance hauls or more expensive cars. When you’re working by yourself, after fuel and maintenance, your profit margin should be around 75%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is likely to be car dealers. You can find them by networking or advertising on LinkedIn or just calling on them directly. You can also offer services to private buyers and sellers and find them on sites like Facebook.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Car Hauling Business Name

Here are some ideas for brainstorming your business name:

Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “hauling” or “car hauling”, boosts SEO
Name should allow for expansion, for ex: “Vehicle Transport Group” over “Show Car Hauling”
A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 220 unique car hauling business name ideas here . If you want your business name to include specific keywords, you can also use our car hauling business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Car Hauling Business Plan

Here are the key components of a business plan:

Executive Summary: A brief summary outlining the key aspects of the car hauling business plan, including its mission, objectives, and potential for success.
Business Overview: An overview of the car hauling business, detailing its structure, legal status, and the specific niche or market it aims to serve.
Product and Services: Clearly defining the car hauling services offered, including vehicle types, delivery options, and any additional services provided.
Market Analysis: A comprehensive analysis of the car hauling market, identifying target customers, market trends, and potential opportunities or challenges.
Competitive Analysis: An examination of competitors in the car hauling industry, highlighting strengths, weaknesses, and strategies to gain a competitive edge.
Sales and Marketing: A detailed plan for promoting and selling car hauling services, outlining target customer demographics, pricing strategies, and marketing channels.
Management Team: Introductions and brief bios of key individuals leading the car hauling business, emphasizing their skills and experience relevant to the industry.
Operations Plan: An outline of the day-to-day operations of the car hauling business, covering logistics, fleet management, and any partnerships or collaborations.
Financial Plan: A detailed financial forecast, including startup costs, revenue projections, and a break-even analysis, providing a clear picture of the business’s financial health.
Appendix: Supporting documents and additional information, such as market research data, legal documents, and any other relevant materials that strengthen the car hauling business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to car hauling businesses.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your car hauling business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a car hauling business.

Step 8: Apply for Car Hauling Business Licenses and Permits

Starting a car hauling business requires obtaining a number of licenses and permits from local, state, and federal governments.

First, you’ll need to obtain a commercial driver’s license from your state DMV. You’ll also need a Department of Transportation number and a Motor Carrier Authority number, both of which you can get by registering with the Federal Motor Carrier Safety Administration (FMCSA) . Finally, you’ll need to complete a unified carrier’s registration , and if you plan to drive to other states or Canada, an International Registration Plan tag and an International Fuel Tax Agreement decal.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your car hauling business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Shipwell , Samsara , or SuperDispatch , to manage your loads, trips, payments, invoicing, and dispatching.

Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

Local SEO — If you operate locally, optimize your Yelp and Google Business profiles and encourage satisfied customers to leave positive reviews to enhance local visibility.
Branding — Develop a cohesive and strong branding strategy, including your logo, employee uniforms, and truck designs to project reliability.
Networking — Forge relationships with car dealerships, auction houses, and moving companies to secure regular clientele and build partnerships.
Website and SEO — Create a comprehensive website detailing your services and safety measures for car transport, using SEO to boost search engine rankings.
Social Media Engagement — Utilize platforms like LinkedIn and Facebook to share customer stories, industry tips, and company updates, targeting businesses and consumers alike.
Content Marketing — Publish blogs on car transport safety, industry news, and practical guides for selecting car hauling services.
Events and Expos — Participate in car and transport events, as well as local business expos, to network and promote your services.
Referral Rewards Program — Implement a system where customers who refer new clients receive benefits, fostering word-of-mouth marketing.
B2B Advertising — Target other businesses through LinkedIn ads that may require car transport services.
Email Marketing — Maintain communication with past and potential clients through regular newsletters featuring service updates and special offers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your car hauling business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your car hauling business could be:

Car hauling anywhere, anytime
Car hauling, on-time guaranteed
Handle with care – let us haul your luxury cars

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a car hauling business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in car hauling for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in car hauling. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a car hauling business include:

Drivers – drive additional loads
Dispatcher – dispatch drivers to pickups
General Manager – staff management, scheduling, accounting
Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Car Hauling Business – Start Making Money!

Car hauling is a great way for truck drivers to start their own businesses. In a $13 billion industry, you know that demand for your services exists as long as people are buying cars. You’ll be your own boss, completely in control of your time and your income, and you can make very good money.

It takes a bit of an investment, but you can see a huge return. You’ve now got some business savvy to combine with your truck driving skills, so go ahead and get on the road to your entrepreneurial destination.

Car Hauling Business FAQs

A car hauling business can be extremely profitable. With a 7-car hauler trailer, you can make as much as $5,000 a load. If you work by yourself, your only expenses will be fuel and maintenance, so you’ll keep a lot of that cash in your pocket.

Your best bet is to call on car dealers directly. You can also network or advertise on LinkedIn to find dealership owners. If you want to haul cars for consumers, you can also advertise on Facebook.

Being an owner-operator truck driver pays the most in the trucking field. Another type of hauling that’s profitable is car hauling. You can charge $300 to $700 per car or even more for long distances.

Subscribe to Our Newsletter

Featured resources.

10 Best Repair Business Ideas

Carolyn Young

Published on December 1, 2022

It’s usually cheaper to have a corrupted hard drive or a defective battery replaced than buying a new laptop, which could be twice as expensive.Th ...

57 Best Service Business Ideas

David Lepeska

The services sector is undoubtedly the biggest economic sector in the US as it accounts for nearly 70% of the country’s gross domestic product. It ...

26 Profitable Automobile Business Ideas

Esther Strauss

Published on July 21, 2022

From car washing to limo services, there are countless lucrative business opportunities related to cars. If you’re looking for a business ideathat ...

No thanks, I don't want to stay up to date on industry trends and news.

Business Ideas
Registered Agents

How to Start a Car Hauling Business in 14 Steps (In-Depth Guide)

Updated: January 10, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The global car hauling and carrying industry hit $9.04 billion in 2022 . With a projected compound annual growth rate (CAGR) of 2.7% from 2022 to 2029, it could reach $10.89 billion by 2029. For a new business owner looking to enter the auto transport industry, now’s the time.

This guide will explain how to start a car hauling business. Topics include obtaining liability insurance, creating a domain name and website for your successful car hauling business, registering an EIN, performing market research, and more. Here’s everything you need to know to start a new car hauling company.

1. Conduct Car Hauling Market Research

The car hauling industry transports new and used vehicles across the country. This vital service enables auto manufacturers, dealerships, auction houses, and more to move inventory efficiently.

Some things you’ll discover through your market research for your own business include:

In 2021, there were over 270,000 car carrier trucks on the road.
As dealers move more pre-owned inventory, demand for car haulers rises.
New car sales in the U.S. also remain strong. Around 15 million light vehicles will be sold in 2021. Most new cars and trucks need transport from manufacturing plants to dealers.
More cars moving through auctions means more need for car hauling services. Manheim , the largest U.S. auto auction company, sold over 8 million vehicles last year.
Rising auto exports further boost business.
Ongoing vehicle recalls and buybacks create transportation needs as well.
While the major car haulers dominate the landscape, small operators can still compete effectively in regional niches.
Focusing on local dealer networks or particular makes/models allows independents to thrive.
Specializing in services like door-to-door deliveries or enclosed shipping of vintage autos offers other avenues for smaller startups to succeed.
The used car market looks especially promising for new car hauling ventures.
Used vehicle sales are projected to reach over 40 million units by 2024, driven by rising used car values.
Capturing even a sliver of this fast-growing segment can yield substantial rewards for savvy entrepreneurs.

So for those with the drive and determination, car hauling offers an appealing small business opportunity. As America continues its long love affair with automobiles, vehicles will need transporting coast-to-coast and door-to-door.

2. Analyze the Competition

Before hitting the road, wise entrepreneurs research their competition. A few key steps can help analyze rival car hauling companies and find strategic advantages.

Some ways to investigate the auto transport business competition include:

Look locally first. Search Google Maps for terms like “car transport” and “auto shipping” near your area. This reveals competitors’ locations and service regions.
Check their websites and call for rate quotes on common routes.
Compare service offerings, years in business, fleet sizes, and reviews.
Search industry forums like Central Dispatch to find active owner-operators. Learn what challenges they face and where they source loads.
Join groups to connect with fellow car haulers and gain insider knowledge.
Check registration databases. Review the DOT numbers of bigger competitors to uncover fleet dimensions, safety ratings, and insurance levels. This helps set benchmarks for your new venture.
Monitor online review sites like TransportReviews .
Beyond measuring customer satisfaction, look for common complaints and unmet needs. This reveals pain points a new entrant could resolve.

While the car hauling field has some major leaguers, room remains for agile rookies. Do your homework on the competition, find your niche, and you can carve out a route to success.

3. Costs to Start a Car Hauling Business

Starting a car hauling company requires careful financial planning and budgeting. From truck purchases to insurance, costs can add up quickly. Here is an in-depth look at typical expenses when launching and operating a car hauling venture.

Start-Up Costs

Trucks – $80,000 to $150,000+ per truck The biggest upfront investment will be acquiring your hauling vehicles. New car carrier trailers range from around $80k up to $150k. Opt for used trucks to save funds initially.
DOT Registration – $300 to $2,500 Registering as a motor carrier with your state’s Department of Transportation runs between $300 to $2,500 depending on fleet size. This covers application fees, licensing, and processes like drug testing.
Insurance – $9,000 to $20,000 annually General liability insurance for car haulers starts at around $9k per year. Added cargo/damage coverage can push premiums over $20k annually. Work with an agent experienced in auto transporters’ needs.
Business Formation Fees – $50 to $500 Filing business documents like articles of incorporation runs $50 to $150. Any licensing fees are extra – check state and local requirements.
Accounting Software – $0 to $200 per month Basic accounting apps like Wave start free. QuickBooks runs up to $200 monthly for added features like payroll, invoicing, and reporting.
Office Equipment – $500 to $2,000 A computer, phone system, printer/copier, and office furniture will likely cost between $500 to $2,000 to start. Lease office space or work from home to minimize costs.
Marketing – $2,000 to $5,000 Plan for $2k to $5k in initial brand building and lead generation efforts. Opt for low-cost channels like social media, SEO, and networking to launch.

Ongoing Costs

Fuel – $3,000 to $7,000 monthly With today’s diesel prices, budget several thousand in fuel costs monthly. Actual spending varies based on routes, mileage, and fleet efficiency.
Maintenance – $1,500 to $3,000 monthly Expect $1,500 to $3,000 for ongoing truck repairs, compliance checks, and preventative maintenance. This ensures the safety and longevity of your fleet.
Labor – $4,000 to $9,000 monthly Driver wages and benefits for 2-3 truck operators run $4k to $9k monthly. Running solo to start helps minimize payroll costs.
Insurance – $750 to $2,000 monthly Payment plans make premiums more affordable, around $750 to $2,000 per month rather than one lump sum.
Software/Apps – $100 to $300 monthly GPS tracking, load boards, routing, and dispatching tools can run $100 to $300 per month collectively for a small fleet.
Accounting – $200 to $500 monthly Expect $200 to $500 monthly for a bookkeeper to handle compliance, taxes, invoices, and payroll.
Marketing – $500 to $1,500 monthly Allocate several hundred dollars monthly for targeted digital ads, SEO maintenance, and website hosting to keep driving leads.

While launching a car hauling company requires significant capital, smart budgeting, and lean starting can pave the road to profitability. Adjustments can be made over time to scale operations and expenses in step with rising revenues.

4. Form a Legal Business Entity

Choosing the right business structure is key when launching a car hauling venture. The legal entity you form influences everything from taxes to liability protection. Here is an at-a-glance look at the pros and cons of each option:

Sole Proprietorship

A sole proprietorship is the simplest and most common set-up for transport businesses like car hauling. You operate as an individual owner reporting all income and losses on your tax return.

Pros: Easy and inexpensive to establish. Complete control over all decisions. Keep all profits.
Cons: Unlimited personal liability – your assets can be seized to settle business debts and legal claims. Harder to raise investment capital for growth. Seen as less credible by customers.

Partnership

A partnership involves two or more owners sharing control and profits. You can divvy up duties based on each partner’s strengths.

Pros: Easy to establish. Shared capital and expertise.
Cons: Joint and several liability – each partner is personally responsible for the actions of the other(s). Profit-sharing must be negotiated. Disagreements between partners can turn ugly.

Limited Liability Company (LLC)

LLCs limit owners’ liability and allow more flexibility in management and profit-sharing. Owners are called members.

Pros: Liability protection for personal assets. Retains tax benefits of a partnership. Managed directly by members or hired managers. Customizable ownership and profit allocation. Easy to add members or sell ownership stakes. Enhances credibility with banks/customers.
Cons: More complex to establish with state filing fees. Requires Articles of Organization and Operating Agreement.

Corporation

A corporation is a separate legal entity from its owners. Shareholders own stock and can elect directors to oversee operations.

Pros: Limited liability for shareholders – only their investment is at risk. Ability to issue stock options to attract investment. Perpetual existence.
Cons: Most complex and expensive to set up and maintain with extensive recordkeeping. Double taxation on profits unless filing as an S-Corp. Strict regulations on governance and operations.

5. Register Your Business For Taxes

Before hauling your first vehicle, take an important legal step – obtain an Employer Identification Number or EIN from the IRS.

An EIN is a unique nine-digit number that identifies your business for tax purposes. It’s like a Social Security Number for your company.

An EIN is required to open any business bank accounts, apply for business licenses, and file tax returns. It establishes your company as a separate legal entity.

Car hauling businesses need an EIN to register their DOT operating authority as well. Having an EIN adds legitimacy with partners and lenders too.

Applying for an EIN is free and fast online. Simply go to IRS.gov and search “apply for EIN”. Follow the steps to get your EIN instantly.

You’ll need basic information like your company’s legal name, address, and ownership structure. No paperwork is required – the EIN is generated at the end of the online application.

The same IRS portal also lets you apply for any state tax IDs you may need later on.

If providing transportation exclusively, your car hauling company may not need to collect sales tax. However, double-check the rules for any states you’ll operate in by visiting [state Department of Revenue websites].

If sales tax obligations apply, you’ll need to register for the proper business tax certificates. This helps you collect, file, and remit sales tax correctly. Failing to adhere to sales tax laws can lead to penalties down the road.

6. Setup Your Accounting

From tracking miles to reporting income, car hauling operations generate volumes of financial data. Without orderly record-keeping, you’ll quickly find your finances getting confusing, or worse, in trouble with the Internal Revenue Service. Here are some ways car transport businesses can keep finances clear.

Accounting Software

Accounting software like QuickBooks creates the structure needed to organize every transaction from fuel costs to invoice payments. QuickBooks seamlessly syncs with bank accounts to log spending automatically. It generates reports on profitability, taxes owed, and cash flow at tax time.

Hire an Accountant

While the software does the heavy lifting, working with an accountant or bookkeeper provides expertise no program can match. A good accountant handles tasks like:

Setting up QuickBooks properly customized for your business
Entering bills & income consistently using the correct categories
Reconciling accounts monthly to identify any discrepancies
Providing monthly Profit & Loss statements to analyze performance
Ensuring sales tax compliance on state filings
Advising on business entity structure for optimal tax treatment
Preparing and filing annual tax returns

Expect to invest around $200 to $500 monthly for bookkeeping and $1,000 to $3,000 for income tax preparation. However, accountants can save far more by maximizing write-offs and avoiding costly IRS penalties.

Open a Business Bank Account

Keeping business and personal finances partitioned is also critical. Commingling funds triggers tax headaches and makes audits more likely. Open a dedicated business checking account that your bookkeeper can monitor.

Apply for a Business Credit Card

Using a business credit card further separates spending. It also builds your commercial credit profile for bigger loans down the road. Apply with issuers like Capital One Spark Cash that understand transit companies’ needs.

7. Obtain Licenses and Permits

Before hauling your first vehicle, secure all required credentials to keep your new venture compliant and road-ready. Find federal license requirements through the U.S. Small Business Administration . The SBA also offers a local search tool for state requirements.

The most crucial permit for car hauling is your U.S. Department of Transportation operating authority. This unique identifier registers your company as an approved interstate carrier.

Apply for the free DOT number by submitting form MC-90018 via FMCSA’s website. You’ll need info like your business structure, insurance levels, and vehicle details. Once approved, display the DOT number prominently on all trucks.

Tied to your DOT permit is your MC number – think of it like a driver’s license for your motor carrier business. This gets linked to your safety rating and insurance info. The MC number must appear on vehicles too.

Beyond federal credentials, individual state permits apply based on regions serviced. Common examples include:

IRP (International Registration Plan) – Prorates vehicle registration fees between states
IFTA (International Fuel Tax Agreement) – Simplifies fuel tax reporting
UCR (Unified Carrier Registration) – Mandatory fee providing state funds for enforcement
OS/OW Permits – For oversize/overweight vehicle loads
Intrastate Licenses – If hauling only within one state

Refer to your state DOT website to find the required credentials and apply. Pro-tip: Enlist a permitting service to handle this bureaucratic maze for you.

Check city and county rules to see if any additional licenses apply for home offices or storage lots. A business license or privilege tax certificate may be needed. Zoning approval might be required too.

8. Get Business Insurance

When vehicles are your inventory and the open road is your office, insurance coverage provides essential protection. The right policies can be your company’s guardrail should the unexpected occur.

Without adequate insurance, a single accident or lawsuit could total your budding business. Imagine:

A driver crashes resulting in severe cargo damage. Without motor truck cargo or auto liability coverage, you pay all losses.
An oil slick on the highway causes your truck to hydroplane. Repairs come straight from your pocket if you lack comprehensive and collision policies.
A family sues after an auto transporter clips their SUV on the interstate. Without proper liability limits, the legal costs could crush you.

Safeguard against financial ruin through business insurance. Key coverages like commercial auto, general liability, cargo, and umbrella insurance all have a role in managing risk.

Work with an agent that understands car haulers’ unique needs. Provide details on your fleet, routes, and more so they can tailor recommendations.

9. Create an Office Space

While much of your workday may be spent on the road, securing office space can provide a professional home base for your car-hauling venture. Here are a few options to consider:

Home Office

A home office offers the most convenience and cost savings. By designating a spare bedroom or basement area as your workspace, you avoid paying rent. This works if you run a solo operation or have just a couple of employees stopping in occasionally.

Coworking Office

For interaction with clients or part-time access for a small team, explore coworking spaces like WeWork . The communal layout and amenities like high-speed internet, printing, and conference rooms provide office-like perks without the overhead of a long-term lease.

Commercial Office

Leasing a small stand-alone office space in a commercial building offers privacy and professionalism for meetings with customers or partners. Expect to pay about $15-$30 per square foot in lease costs annually. This ranges from $750 to $1,500 monthly for a modest 500-square-foot office.

10. Source Your Equipment

Once your business basics are covered, securing reliable trucks and trailers becomes a priority one. As a new car hauling outfit, strategic selection and sourcing of equipment can stretch dollars further.

Purchasing shiny new rigs from dealers like Freightliner or Peterbilt provides the latest features and tech, customized to your specifications. But the luxury comes at a steep price – expect to spend $80k to $150k per truck.

Searching classified and auction sites like Truck Paper . uncovers quality used trucks and trailers at significant discounts. Core inventory like tractors, carriers, and forklifts can cost 50% less when buying second-hand. Vet listings carefully and inspect purchases thoroughly before buying.

For more savings, buy directly from other owner-operators via forums like Central Dispatch . This insider market often yields deals on equipment coming off of leases. Just be sure to verify maintenance records and DOT inspections.

Rent or Lease

Rather than tie up capital in equipment, leasing trucks through companies often makes sense for newcomers. Lease terms like 36 or 48 months allow you to operate newer vehicles with warranty protections for less upfront cash.

11. Establish Your Brand Assets

Beyond DOT registrations and insurance, creating professional brand assets brings your budding car hauling venture to life. A polished image inspires trust in customers and helps you stand out from competitors.

Get a Business Phone Number

Start by securing a memorable business phone number through providers like RingCentral . Choose an easy-to-remember vanity number like “555-HAUL” if available. Make sure it offers call routing and voicemail so you never miss an opportunity.

Design a Logo

Design a sleek logo that becomes synonymous with your brand. Consider bright colors and visuals that connect to transportation and the open highway. A talented designer at Looka can create a custom logo tailored to your vision and needs for under $50.

Print Business Cards

With logo files in hand, order professional business cards, letterhead, and truck decals from Vistaprint . Look sharp from your first client meeting by handing a crisp card with your logo, phone, and site. Quality signs on your fleet spread brand visibility to every road traveled.

Buy a Domain Name

Secure the perfect .com domain name next. Aim for your company name or targeted keywords like “NYCCarTransport”. Use Namecheap to register available names for under $20 annually.

Design a Website

With your domain registered, the next step is getting your website live. Easily build one yourself through drag-and-drop services like Wix to maintain full control. Or hire a freelancer on Fiverr to custom code a site tailored to your goals starting around $500.

12. Join Associations and Groups

While running a mostly solo operation from your truck cab, connecting with others in the car hauling field should remain a priority. Local associations, meetups, and online groups provide invaluable networking and learning opportunities.

Local Associations

Joining associations like the Professional Car Shippers Association offers insider access to established haulers. Tap into their know-how through member forums, training events, and industry intel. Annual dues of around $300 gain you access to tight-knit communities for mentorship.

Local Meetups

Attend local industry trade shows and meetups to expand your network. Sites like Meetup help locate nearby events for transport professionals. Grab coffee with other solo haulers or connect with fleet operators at conferences. Exchanging insights across all experience levels ultimately betters the industry.

Facebook Groups

For on-demand advice, join Facebook Groups like HotShot Trucking & Car Hauling 101 or TRUCKS & TRAILERS, TOWING & HAULING – GROUP . These massive online communities address every imaginable issue fellow haulers face. Search for guidance or post questions to tap into real-world tips from thousands of drivers.

13. How to Market a Car Hauling Business

With your trucks registered and branded, securing a steady stream of clients becomes the next priority. Implementing the right marketing mix keeps your schedules filled and cargo bays stacked.

Some ways to market your own car hauling business include:

Personal Networking

Let professional contacts and friends know about your new venture and highlight your capability to reliably transport vehicles door-to-door. Satisfied customers who spread the word about their positive experience become your best promoters. Consider offering referral bonuses like discounted future shipping to further encourage endorsements.

Digital Marketing

Launch Google Ads campaigns targeting search terms like “auto transport Los Angeles” to appear at the top of results
Run localized Facebook ads promoting your services to dealerships and private owners
Create YouTube videos highlighting your drivers, processes, and fleet to humanize your brand.
Initiate an email newsletter campaign providing helpful tips for vehicle owners
Blog about your journey as an owner-operator to attract and inform potential clients

Traditional Marketing

Design eye-catching mailers and flyers to distribute at dealerships, auctions, and truck stops
Take out ads in automotive magazines and other niche publications
Sponsor relevant trade shows and community events to raise local visibility
Invest in billboards or radio spots along major transportation routes
Provide co-branded merch (t-shirts, hats, etc) to happy customers to become moving ads

The most effective strategy combines digital visibility with feet-on-the-ground networking. As your reputation builds, inbound inquiries increase. Still aim to spend at least 10 hours weekly dedicated solely to promoting your services across multiple channels.

14. Focus on the Customer

On the open roads, your reputation is everything. Providing an amazing customer service experience becomes your most powerful marketing tool. Some ways to improve customer focus in your car transport business include:

Exceeding expectations at every turn earns loyal repeat customers. For instance, proactively updating a dealer on your ETA or handling last-minute route changes with grace shows you go the extra mile.
additionally, delighted customers become advocates. A taxi company thrilled by your timely airport delivery of a vintage car tells all their repeat high-end riders about your care and reliability.
An auto museum blown away by your white glove vintage automobile transport gives you a glowing endorsement on their social media.
Small touches like follow-up thank you calls and customer satisfaction surveys show you value feedback for continuous improvement.
In an industry where bumps in the road are inevitable, how you respond and recover cement trust. Patience, empathy, and accountability when issues arise demonstrate customer-centricity.

For startups, flawless service fills order books faster than any ad. Put your customers first, get them raving about experiences, and let your reputation as a 5-star hauler hit the highway at full speed.

How to Start an ATV Rental Business in 14 Steps (In-Depth Guide)

The ATV rental industry has seen impressive growth over the last decade. It is ...

How to Start a Driving School in 14 Steps (In-Depth Guide)

The need for professional drivers isn’t going away anytime soon. The US trucking industry ...

How to Start a Car Restoration Business in 14 Steps (In-Depth Guide)

Classic car restoration is big business, with the global automotive restoration industry reaching $5.5 ...

How to Start an Auto Repair Shop in 14 Steps (In-Depth Guide)

The auto repair industry in the United States reached $188.13 billion in 2024 and ...

Check Out Our Latest Articles

How to start a dog clothing business in 14 steps (in-depth guide), how to start a vintage clothing business in 14 steps (in-depth guide), how to start a bamboo clothing business in 14 steps (in-depth guide), how to start a garage cleaning business in 14 steps (in-depth guide).

How To Start A Car Hauling Business: A Comprehensive Guide

Fuel your passion for cars and drive your success with a car hauling business. The car hauling industry offers a unique opportunity for both car fanatics and business-savvy individuals. Whether you tinker under the hood or have an eye for opportunity, there’s a place for you in this exciting field.

This guide will be your roadmap to success in the car hauling business . We’ll break down everything you need to know, from the basics of car hauling to getting your business license (without the need for a CDL!). We’ll even help you craft a winning business plan to set your venture on the fast track.

So, buckle up and get ready to rev your engine for a rewarding career. Let’s get you started in the car hauling industry !

What is a car hauling business.

Car Hauling Business is a type of business that involves transporting multiple vehicles from one location to another. This can be done using a large truck and trailer specifically designed for carrying cars, known as a car hauler. These businesses are often used by car dealerships, individuals relocating, and auto auctions to move multiple vehicles at once.

Car haulers typically have multiple levels for carrying cars, allowing them to transport more vehicles in a single trip. They are also equipped with ramps and other mechanisms for safely loading and unloading the cars they transport.

Starting a car hauling business can be a lucrative venture for individuals who have a passion for driving and a keen sense of organization. It requires careful planning, determination, and a solid understanding of the transportation industry.

What Are The Basic Requirements To Start A Car Hauling Business?

Starting a car hauling business can be a lucrative venture for those who are passionate about cars and have a love for driving. However, before diving into this business, there are several basic requirements that need to be met in order to operate legally and efficiently.

First and foremost, you will need to obtain the necessary licenses and permits to operate a car hauling business. This may include a commercial driver’s license (CDL), a USDOT number, and other state and local permits depending on your location.

In addition to the legal requirements, you will also need to invest in the right equipment for car hauling . This may include a reliable haul truck , car hauler trailers , tie-down straps, and other necessary tools to safely transport vehicles from one location to another.

Furthermore, it is essential to have insurance coverage for your car hauling business . This may include liability insurance, cargo insurance, and other types of coverage to protect your assets and the vehicles you will be transporting.

Lastly, in order to start a successful car hauling business , you will need to establish a solid business plan, marketing strategy, and financial stability. This may involve conducting market research, identifying potential clients, and setting competitive pricing for your services.

Unified Carrier Registration (UCR)
Commercial Driver’s License (CDL) A
Business License
Commercial Auto Insurance
General Liability Insurance
Car Hauling Truck
Car Hauling Trailer
Business Plan: outlining your business goals, target market, marketing strategy, and financial projections.

How To Get İnto The Car Hauling Business?

If you’re considering starting a car hauling business , there are several essential steps you need to take to get started. One of the first things you’ll need to do is research and understand the regulations and requirements for running a car hauling business in your area. This may include obtaining the necessary licenses and permits, as well as understanding any restrictions or limitations on the type of vehicles you can transport.

Once you’ve familiarized yourself with the legal aspects of starting a car hauling business , you’ll need to consider the practicalities of the job. This may include deciding on the type of car hauling services you want to offer, determining the equipment and vehicles you’ll need to get started, and creating a business plan to outline your goals and strategies for success.

Finally, as with any business, networking and marketing are crucial for getting into the car hauling business . Building relationships with dealerships, auctions, and individual customers can help you establish a reliable customer base, while effective marketing strategies can help you stand out in a competitive industry.

How Much Does It Cost to Start a Car Hauling Business

Starting a car hauling business can be a lucrative opportunity, but it also requires a significant financial investment. The cost to start a car hauling business can vary depending on several factors, including the type of vehicles you plan to transport, the size of your operation, and the equipment you need.

One of the biggest expenses when starting a car hauling business is the purchase of a truck and trailer. Depending on the size and type of vehicles you plan to transport, a new truck and trailer can cost anywhere from $80,000 to $200,000. If you’re on a tight budget, you may be able to find a used truck and trailer for around $50,000, but you’ll need to carefully inspect the equipment to ensure it’s in good condition.

In addition to the cost of the truck and trailer, you’ll also need to budget for insurance, licensing, and permits. Commercial auto insurance for a car hauling business can be expensive, particularly if you’re transporting high-value vehicles. You’ll also need to obtain the appropriate licenses and permits from the Department of Transportation and other regulatory agencies, which can involve additional fees.

Other costs to consider when starting a car hauling business include fuel, maintenance and repairs, and marketing. Fuel costs can add up quickly, particularly if you’re transporting vehicles long distances. Maintenance and repairs are also ongoing expenses, as trucks and trailers require regular servicing to remain in roadworthy condition. Marketing is another important cost to consider, as you’ll need to invest in advertising and promotion to attract clients to your car hauling business .

While the upfront costs of starting a car hauling business can be significant, it’s important to remember that the potential for profit is also substantial. If you’re able to secure regular contracts with auto dealerships, car rental companies, or auction houses, you could quickly recoup your initial investment and start turning a healthy profit.

Total Estimated Range: $7,000 – $180,000+

Trailer price can vary depending on size and features (open vs. enclosed carrier).
Truck cost depends on new vs. used, size, and features.
Insurance costs will depend on coverage level and your driving record.

This table provides a starting point for budgeting. It’s wise to research costs in your specific area and consider getting quotes for equipment and services.

Car Hauling Business Plan: Step-by-Step

Starting a car hauling business can be an exciting and lucrative venture for those who have a passion for transporting vehicles. However, like any business, it requires careful planning and a solid business plan to ensure success.

One of the first steps in creating a successful car hauling business plan is to conduct thorough market research. This will help you understand the demand for vehicle transportation services in your area, identify your target market, and determine the pricing and services you will offer.

Once you have a clear understanding of the market, you can begin to outline your business goals, objectives, and strategies for achieving success. This may include developing a marketing plan, securing financing, and identifying potential competitors.

Essential Steps for Obtaining an Car Hauling Business License

Starting a Car Hauling Business can be an exciting and profitable venture. However, before getting started, it’s important to obtain the necessary licenses and permits to legally operate your business. Here are the essential steps for obtaining an Car Hauling Business License.

First and foremost, you will need to check with your state and local government to determine the specific requirements for obtaining a Car Hauling Business License. Each state may have different regulations and processes for obtaining the necessary licenses and permits, so it’s crucial to research and understand the requirements in your particular area.

Once you have a clear understanding of the licensing requirements in your area, you can begin the application process. This will likely involve filling out an application, providing documentation such as proof of insurance and bonding, and paying any associated fees. It’s important to carefully follow the instructions provided by your state or local government to ensure that your application is complete and accurate.

Note: This table is a general guide, and specific requirements may vary by location. It’s crucial to research regulations in your area for the most accurate information. Consider consulting with a business advisor or contacting your local Small Business Administration (SBA) office for further guidance.

How Can I Find Clients For My Car Hauling Business?

When starting a car hauling business , one of the key factors for success is finding reliable clients to transport vehicles for. There are several strategies that can be utilized to attract potential clients. First and foremost, establishing a strong online presence is crucial in today’s digital age. This can be achieved through creating a professional website that showcases the services offered, testimonials from satisfied clients, and contact information for inquiries.

Additionally, leveraging social media platforms such as Facebook, Instagram, and LinkedIn can help in reaching a wider audience and connecting with individuals or companies in need of car hauling services . Sharing engaging and informative content related to the industry can help build credibility and attract potential clients.

Another effective method for finding clients for a car hauling business is networking within the automotive industry. Attending industry events, trade shows, and joining local business organizations can provide valuable opportunities to meet potential clients and establish professional relationships.

Furthermore, reaching out to auto dealerships, auction houses, and car rental companies can be a fruitful approach in securing regular clients for transporting vehicles. Building a strong reputation for reliability, efficiency, and exceptional customer service is essential in retaining clients and attracting referrals.

It’s also important to differentiate your services from competitors by offering personalized solutions to meet the unique needs of clients. Being transparent about pricing, timelines, and procedures can help in building trust and attracting repeat business.

Online Presence:

Develop a strong website: This should be your digital storefront, showcasing your services, pricing, and customer testimonials. Make sure it’s mobile-friendly and easy to navigate.
Leverage social media: Create business pages on platforms like Facebook, Instagram, and LinkedIn. Share informative content about car hauling, industry trends, and your services.
Produce valuable content: Blog posts, infographics, or videos that address common car hauling questions can attract potential clients searching online.

Marketing and Networking:

Utilize online advertising: Pay-per-click (PPC) ads on search engines can target people actively looking for car hauling services in your area.
Build relationships: Network with auto dealerships, repair shops, and relocation companies. These businesses often refer customers who need car hauling services.
Get listed in directories: Include your business in online directories specific to car hauling and transportation services.

Customer Satisfaction:

Use a Customer Relationship Management (CRM) system: This will help you track leads, manage client communication, and ensure excellent customer service.
Showcase success stories: Share positive customer testimonials and case studies on your website and marketing materials.
Focus on building trust and reputation: By providing reliable service and clear communication, you’ll encourage repeat business and referrals.

What Are The Potential Challenges Of Starting A Car Hauling Business?

Starting a car hauling business comes with its fair share of challenges, as with any new venture. One potential challenge for aspiring car haulers is the initial cost of starting the business. Purchasing a suitable car hauling trailer and securing proper insurance can be quite expensive. Another challenge is finding reliable and consistent clients. It may take some time and effort to establish a solid customer base and build a good reputation in the industry. Additionally, navigating the various regulations and requirements for transporting vehicles across state lines can be complex and time-consuming.

Furthermore, managing the logistics of scheduling pickups and drop-offs, especially if operating on a national scale, can be a significant challenge. Coordinating the transportation of multiple vehicles to different destinations while ensuring timely delivery requires careful planning and organization. Another potential challenge is dealing with unforeseen mechanical issues or accidents during transit. Ensuring the safety and security of the vehicles being transported is crucial, and facing unexpected setbacks can be stressful and costly.

Lastly, competing with other existing car hauling businesses and staying ahead in the industry can be tough. Building a strong brand and effectively marketing your services to stand out among the competition requires dedication and strategic planning. Overcoming these challenges will require perseverance, attention to detail, and a strong work ethic to establish a successful car hauling business .

How much can I earn from a car hauling business?

When starting a car hauling business , one of the important factors to consider is the potential earnings that can be made. The income from a car hauling business can vary depending on various factors such as the number of vehicles transported, the distance traveled, and the pricing strategy. It’s important to have a clear understanding of the potential earnings to set realistic goals and make informed decisions.

One way to estimate the potential earnings from a car hauling business is to calculate the average earnings per vehicle transported. This can be determined by considering the average distance traveled, the fuel expenses, maintenance costs, and the pricing structure. For example, transporting multiple vehicles over a long distance can result in higher earnings compared to shorter distances.

Another factor to consider when determining the potential earnings is the target market and the demand for car hauling services in the area. Identifying potential clients and understanding their transportation needs can help in estimating the potential income. Additionally, offering specialized services or catering to specific customer requirements can lead to higher earnings.

In addition to the actual transportation fees, it’s important to consider other potential sources of income such as additional services like vehicle storage, expedited delivery, or vehicle tracking. These additional services can contribute to the overall earnings of the car hauling business .

It’s worth noting that the potential earnings from a car hauling business can also be affected by competition, economic factors, and industry regulations. Conducting thorough market research and staying updated with industry trends can help in identifying potential opportunities for maximizing earnings.

What Are The Different Types Of Car Hauling Trailers?

When starting a car hauling business , one of the most important decisions you will make is the type of trailer you will use to transport vehicles. There are several different types of car hauling trailers to choose from, and each has its own unique advantages and disadvantages.

One of the most common types of car hauling trailers is the open car carrier. These trailers are typically made of steel and have ramps that can be folded down to load and unload vehicles. Open car carriers are popular because they are relatively inexpensive and easy to use. However, they do not provide protection from the elements, so they may not be suitable for all types of vehicles.

Another option is the enclosed car carrier, which is similar to a traditional semi-truck trailer. These trailers are fully enclosed, providing protection from the weather and road debris. Enclosed car carriers are often used for high-end and luxury vehicles, as well as classic cars and motorcycles. While they offer superior protection, enclosed car carriers are more expensive and can be more difficult to load and unload.

Flatbed trailers are another option for car hauling businesses . These trailers have a flat, open surface that allows vehicles to be easily loaded and unloaded from the top or sides. Flatbed trailers are versatile and can accommodate a variety of vehicle sizes and shapes, but they do not provide protection from the weather.

Finally, there are specialty trailers designed for specific types of vehicles, such as multi-vehicle trailers, lowboy trailers for oversized vehicles, and gooseneck trailers for heavy-duty hauling. These trailers are designed to meet the unique needs of the car hauling business and may be necessary for businesses that specialize in specific types of vehicles.

What Are Some Tips For Success İn The Car Hauling Business?

Starting a car hauling business can be an exciting and potentially lucrative venture, but it also comes with its own set of challenges and obstacles. To increase your chances of success in this competitive industry, it’s important to consider a few key tips that can help you navigate the complexities of establishing and growing your car hauling business .

First and foremost, one of the most important tips for success in the car hauling business is to conduct thorough market research before launching your venture. By understanding the demand for car hauling services in your target market, as well as the existing competition, you can develop a more informed business plan and identify potential opportunities for growth.

Another crucial aspect of running a successful car hauling business is to prioritize customer service and satisfaction. Given the nature of the industry, where clients are entrusting you with their valuable vehicles, it’s essential to build trust and credibility through exceptional service and professionalism.

Additionally, investing in reliable and well-maintained equipment, such as car hauling trailers , is essential for ensuring the safe and efficient transport of vehicles. By prioritizing equipment quality and safety standards, you can mitigate operational risks and build a positive reputation within the industry.

Lastly, networking and building strong relationships within the automotive and transportation sectors can significantly contribute to the growth and success of your car hauling business . By establishing partnerships with auto dealerships, auction houses, and other relevant entities, you can expand your client base and enhance your business’s overall visibility and credibility.

Single-car trailers: These are the most common type of car hauler trailer. They are designed to transport one car at a time and are available in a variety of lengths to accommodate different car sizes.
Double-car trailers: As the name suggests, double-car trailers are designed to transport two cars at a time. They are a good option for people who need to transport multiple vehicles, such as a car and a motorcycle or a car and a trailer.
Stacker trailers: Stacker trailers are a type of double-car trailer that allows you to load two cars on top of each other. They are a good option for people who need to transport two cars but don’t have a lot of space.
Enclosed car trailers: Enclosed car trailers offer the most protection for your vehicle from the elements. They are a good option for people who need to transport a valuable car or who will be traveling long distances.
Open car trailers: Open car trailers are the most affordable option. They are a good option for people who need to transport a car for a short distance or who don’t mind their car being exposed to the elements.
Tilt trailers: Tilt trailers have a bed that can tilt, which makes it easy to load and unload vehicles. They are a good option for people who transport cars frequently or who have difficulty loading and unloading a car from a flatbed trailer.
Gooseneck trailers: Gooseneck trailers have a coupler that attaches to a special hitch in the bed of a truck. This design allows the trailer to clear the truck bed, which provides more stability when towing. Gooseneck trailers are a good option for people who need to transport heavy vehicles or who will be towing the trailer for long distances.

How To Start A Non Cdl Car Hauling Business?

Starting a non-CDL car hauling business can be a lucrative and fulfilling venture for individuals with a passion for the transportation industry. The first step in getting started is to research and understand the logistics of the car hauling business. This may involve familiarizing yourself with the different types of car hauling trailers, understanding the legal requirements for operating a car hauling business, and identifying potential competitors in the market.

Once you have a solid understanding of the industry, the next step is to create a comprehensive business plan. This plan should outline your target market, marketing strategies, financial projections, and operational procedures. It’s important to consider factors such as insurance, licensing, and permits when developing your business plan to ensure that your car hauling business operates within legal boundaries.

After establishing a solid business plan, the next crucial step is to obtain the necessary licenses and permits to legally operate a non-CDL car hauling business. This may involve obtaining a motor carrier authority (MC number), filing for state and federal permits, and purchasing insurance coverage that meets the specific requirements for car hauling businesses. Additionally, you may need to secure a surety bond and comply with Department of Transportation (DOT) regulations for vehicle weight limits, vehicle inspections, and driver qualifications.

How To Start A Car Hauling Business İn Texas

Starting a Car Hauling Business in Texas can be a lucrative venture for anyone looking to enter the transportation industry. With Texas being a state with a large population and a high demand for vehicle transportation services, there are plenty of opportunities to be successful in this field.

One of the first steps to starting a Car Hauling Business in Texas is to research and understand the state’s regulations and requirements for operating such a business. This may include obtaining permits, licenses, and insurance specific to the transportation of vehicles within the state.

Once the legal aspects are in order, it’s important to consider the logistics of running a Car Hauling Business in Texas. This may involve purchasing or leasing a fleet of vehicles capable of transporting cars and other vehicles, as well as establishing relationships with car dealerships, auction houses, and other businesses that require vehicle transportation services.

Marketing and advertising will also be crucial to the success of a Car Hauling Business in Texas. Building a strong online presence, networking within the industry, and offering competitive rates and exceptional customer service are all important factors in attracting and retaining clients in this competitive field.

Finally, it’s essential to continually assess and adapt the business to the changing needs and trends within the vehicle transportation industry in Texas. This may involve expanding services, exploring new markets, and staying up to date with developments in technology and regulations that may impact the Car Hauling Business in the state.

Advantages And Disadvantages Of Running A Car Hauling Business İn Texas

Starting a Car Hauling Business in Texas can be a lucrative venture, especially considering the high demand for car shipping services in the state. One of the major advantages of running a car hauling business in Texas is the large market potential. With the state’s growing population and economic development, there is a constant need for vehicle transportation services, creating ample opportunities for business growth.

However, one of the key disadvantages of operating a car hauling business in Texas is the high level of competition. Due to the favorable business environment, there are numerous companies offering car shipping services, making it essential for new businesses to differentiate themselves and establish a strong market presence.

Another advantage of running a car hauling business in Texas is the state’s well-developed transportation infrastructure. With its extensive network of highways and access to major ports, transporting vehicles within and outside the state is relatively convenient, contributing to efficient service delivery.

On the other hand, a potential disadvantage of operating a car hauling business in Texas is the need for compliance with stringent regulations and licensing requirements. To ensure legal operations, business owners must navigate through various industry-specific regulations and obtain necessary permits, which can add to the initial start-up costs and administrative complexities.

Overall, while a car hauling business in Texas offers promising opportunities, it is essential for entrepreneurs to carefully consider the competitive landscape and regulatory environment to make informed decisions and establish a successful venture in the state.

How To Start A Car Hauling Business İn California

Starting a car hauling business in California can be a lucrative venture if done right. There are several steps that you need to take in order to get your business off the ground and running smoothly.

First, you will need to research and understand the specific regulations and requirements for operating a car hauling business in California. This may include obtaining the necessary permits and licenses, as well as understanding any specific industry regulations that may apply.

Next, you will need to consider your start-up costs. This may include purchasing a truck and trailer, as well as any other equipment that may be necessary for hauling cars. It’s important to carefully budget and plan for these costs in order to ensure that you have the necessary resources to get your car hauling business off the ground.

Once you have taken care of the necessary legal and financial considerations, you can begin to market your car hauling business in California. This may include creating a website, building a social media presence, and networking with potential clients and partners in the industry. By effectively marketing your business, you can begin to attract customers and establish a strong reputation in the California car hauling industry.

Finally, as your car hauling business in California begins to grow, it’s important to continually evaluate and improve your operations. This may involve investing in additional equipment, hiring additional staff, or expanding your service offerings. By continually evolving and improving your business, you can ensure long-term success in the California car hauling industry.

Advantages And Disadvantages Of Running A Car Hauling Business İn California

Starting a Car Hauling Business in California has several advantages. Firstly, California is one of the largest car markets in the United States, providing plenty of opportunities for car hauling businesses to thrive. Additionally, the state’s diverse geography, including urban areas, coastal regions, and mountainous terrain, creates a high demand for car transportation services. Furthermore, the state’s strong economy and high population density result in a constant need for vehicle transport, making it an ideal location for starting a car hauling business.Disadvantages Of Running An Car Hauling Business İn California

Despite the numerous advantages, running a car hauling business in California also comes with certain disadvantages. One of the main challenges is the state’s strict environmental regulations and emissions standards, which may require business owners to invest in pricey eco-friendly transport vehicles. Additionally, the high cost of living and overhead expenses in California can make it more challenging for car hauling businesses to maintain profitability. Moreover, intense competition in the state’s car hauling industry can make it difficult for new businesses to establish themselves and attract clients.

In conclusion, while starting a car hauling business in California has its drawbacks, the numerous advantages, such as the state’s large car market and diverse geography, make it a worthwhile endeavor for entrepreneurs seeking success in the vehicle transportation industry.

How To Start A Car Hauling Business İn Florida

When starting an Car Hauling Business in Florida, there are several important steps to take. First, you will need to research the market demand and competition in the area. This will help you determine if there is a need for your services and how you can differentiate yourself from other businesses.

Next, you will need to create a business plan that outlines your target market, pricing strategy, marketing plan, and financial projections. This will help you stay organized and focused as you launch your business.

Once you have a solid plan in place, you will need to register your business with the state of Florida and obtain any necessary licenses and permits. This will ensure that your business is operating legally and in compliance with state regulations.

After your business is registered, you can start building your fleet of trucks and hiring drivers. It’s important to carefully vet potential employees and ensure that your vehicles are well-maintained to provide reliable service to your customers.

Finally, you can start marketing your business to potential clients and building relationships with car dealerships, auction houses, and other businesses that may need your services. Networking and word-of-mouth referrals can be powerful tools for growing your Car Hauling Business in Florida.

Advantages And Disadvantages Of Running A Car Hauling Business İn Florida

When considering starting a car hauling business in Florida, there are several advantages and disadvantages to take into account. One advantage of running a car hauling business in Florida is the large demand for vehicle transportation due to the state’s large population and tourism industry. This provides ample opportunities for business growth and a steady stream of potential clients.

On the other hand, one disadvantage is the high level of competition in the car hauling industry in Florida. With numerous existing businesses and new companies entering the market, it can be challenging to stand out and attract customers.

Another advantage is the favorable weather conditions in Florida, which allows for year-round operation without having to deal with extreme weather-related disruptions. This can lead to higher profitability and fewer operational challenges compared to businesses in other states.

However, a potential disadvantage of running a car hauling business in Florida is the need to navigate complex regulations and licensing requirements specific to the state. Understanding and complying with these legal requirements can be time-consuming and costly for new business owners.

Overall, starting and running a car hauling business in Florida has its pros and cons, and careful consideration of these factors is essential for success in the industry.

How To Start A Car Hauling Business İn New York

Starting a car hauling business in New York can be a lucrative opportunity for entrepreneurs looking to break into the transportation industry. With a large population and bustling economy, New York provides a wealth of potential customers for a car hauling business. However, like any business venture, there are certain steps and considerations that need to be taken into account before getting started.

The first step in starting a car hauling business in New York is to create a detailed business plan. This plan should outline the target market, competition analysis, marketing strategy, and financial projections. It will serve as a roadmap for the business and will be essential when seeking financing or investment.

Once the business plan is in place , it’s important to register the business and obtain any necessary permits or licenses. In New York, certain permits may be required for operating a commercial transportation business, so it’s important to do thorough research and ensure compliance with all legal requirements.

Next, it’s crucial to invest in the right equipment and vehicles for the car hauling business. This may include an appropriate truck and trailer, as well as any necessary tie-downs, straps, or other equipment for securing vehicles during transport. Investing in high-quality equipment will not only improve efficiency and safety but also enhance the professional image of the business.

Finally , establishing a strong online presence and marketing strategy will be essential for attracting customers and growing the business. This may include creating a professional website, leveraging social media platforms, and networking within the local automotive community.

Advantages And Disadvantages Of Running A Car Hauling Business İn New York

Starting a Car Hauling Business in New York comes with its own set of advantages and disadvantages. One major advantage is the high demand for car transport services in a bustling city like New York. The need for efficient and reliable vehicle transportation creates a steady stream of potential customers for your business.

On the other hand, one of the disadvantages of running a Car Hauling Business in New York is the intense competition. With many existing companies in the market, it can be challenging to carve out a niche for your business and attract a loyal customer base. This means you will need to have a solid marketing strategy and exceptional service to stand out from the competition.

Another advantage of operating a Car Hauling Business in New York is the potential for steady income. With the city’s active car market and need for transportation services, you can expect a consistent flow of business and revenue. This can provide stability and growth opportunities for your company.

However, it’s important to consider the disadvantage of high operating costs and expenses in a city like New York. From fuel and maintenance to insurance and permits, the overhead costs can be significant. It’s crucial to carefully manage your finances and budget to ensure profitability in this competitive market.

In conclusion, while there are both advantages and disadvantages to running a Car Hauling Business in New York, with the right planning, strategy, and dedication, it is possible to build a successful and thriving company in this dynamic and vibrant city.

How To Start A Car Hauling Business İn Illinois

If you are looking to start a car hauling business in Illinois, there are a few steps you’ll need to take to get started. First, you’ll need to decide on the type of car hauling business you want to start. Are you looking to transport new cars from manufacturers to dealerships, or are you interested in transporting individual cars for customers? Once you have determined the type of business you want to start, you’ll need to obtain the necessary licenses and permits to operate legally in Illinois. This may include a motor carrier permit, a Department of Transportation number, and insurance coverage.

Next, you’ll need to decide on the equipment you’ll need for your car hauling business . This may include a car hauling trailer, tie-down straps, and a reliable vehicle to tow the trailer. You’ll also need to invest in safety equipment, such as wheel chocks and reflective tape, to ensure that your cargo is secure during transport. Once you have the necessary equipment, you can start marketing your car hauling business to potential clients in Illinois. This may involve attending local car shows or reaching out to dealerships and individuals in need of car transportation services.

Starting a car hauling business in Illinois can be a rewarding venture, but it’s important to carefully consider the advantages and disadvantages before getting started. One advantage of running a car hauling business is the potential for high profits, especially if you are able to secure long-term contracts with dealerships or car manufacturers. However, there are also disadvantages to consider, such as the high cost of equipment and insurance, as well as the potential for long hours on the road.

It’s important to thoroughly research the car hauling industry in Illinois before starting your business. This may involve speaking with other car haulers in the area, as well as reaching out to industry associations for advice and support. By taking the time to plan and prepare for your car hauling business, you can set yourself up for success in this competitive industry.

Overall, starting a car hauling business in Illinois can be a challenging but rewarding endeavor. With the right preparation and dedication, you can build a successful business that meets the transportation needs of individuals and businesses throughout the state.

Advantages And Disadvantages Of Running A Car Hauling Business İn Illinois

Advantages: Running a car hauling business in Illinois can be a lucrative venture, as the state is home to a large population and thriving economy. There is a high demand for vehicle transportation services, as people constantly need to move their cars from one location to another. Additionally, Illinois has a well-developed transportation infrastructure, which makes it easier for car hauling businesses to operate efficiently. The state’s central location in the U.S. also allows for easy access to major highways and interstates, facilitating the transportation of vehicles across the country.

Disadvantages: Despite the many advantages, there are also several challenges associated with running a car hauling business in Illinois. One major drawback is the intense competition in the industry, as there are numerous companies vying for the same market share. This can make it difficult for new entrants to establish themselves and attract a steady customer base. Additionally, stringent regulations and licensing requirements imposed by the state can pose hurdles for aspiring car hauling entrepreneurs. Lastly, the fluctuating fuel prices and operating costs can impact the profitability of the business.

Conclusion: In conclusion, while there are several advantages to running a car hauling business in Illinois, it is important to carefully assess the potential challenges and drawbacks. With thorough planning, strategic decision-making, and a clear understanding of the market dynamics, entrepreneurs can overcome these obstacles and build a successful car hauling enterprise in the state.

Looking for more information on starting a car hauling business? Check out our comprehensive guide on how to start a car hauling business in Illinois.

How To Start A Car Hauling Business İn Ohio

Starting a car hauling business in Ohio can be a lucrative venture for anyone with a passion for automobiles and transportation. With its central location and strong economy, Ohio offers a favorable environment for starting and running a car hauling business.

One of the first steps in starting a car hauling business in Ohio is to research and understand the licensing and permit requirements for operating such a business in the state. This may include obtaining a Motor Carrier Permit from the Ohio Department of Transportation, as well as any other necessary permits at the federal, state, and local levels.

Once the legal requirements are understood, the next step is to secure the necessary equipment for the business, such as car hauling trailers and trucks. Given the competitive nature of the industry, it’s important to invest in reliable equipment that meets safety standards and can handle the demands of transporting vehicles across the state and beyond.

Another crucial aspect of starting a car hauling business in Ohio is to develop a solid marketing and business plan. This may involve identifying target customers, establishing partnerships with dealerships and auto auctions, and implementing effective promotional strategies to attract clients. Building a strong online presence through a professional website and social media platforms can also help in reaching potential customers.

Finally, it’s essential to prioritize safety and customer satisfaction in the operations of the car hauling business. This includes hiring skilled and experienced drivers, maintaining a fleet of well-maintained vehicles, and providing excellent customer service throughout the transportation process. By focusing on these key areas, aspiring entrepreneurs can set themselves up for success in the competitive car hauling industry in Ohio.

Advantages And Disadvantages Of Running A Car Hauling Business İn Ohio

Running a Car Hauling Business in Ohio comes with its own set of advantages and disadvantages. One of the key advantages is the thriving automotive industry in Ohio, which provides a large customer base for a car hauling business. With numerous car dealerships, manufacturers, and auctions in the state, there is no shortage of potential clients for your business.

On the other hand, one of the disadvantages of running a Car Hauling Business in Ohio is the high level of competition. With the presence of several well-established car hauling companies in the state, breaking into the market and establishing your business may be a challenge.

Another advantage is the strategic location of Ohio, making it a hub for transportation and logistics. This provides ample opportunities for your car hauling business to expand and reach clients in neighboring states.

However, the fluctuating fuel prices and stringent regulations in Ohio may pose as a disadvantage for your car hauling business. Keeping up with the ever-changing fuel costs and complying with state regulations can be a daunting task.

In conclusion, while there are several advantages to running a Car Hauling Business in Ohio, there are also some significant disadvantages that need to be carefully considered before starting your venture in the state.

How To Start an Auto Detailing Business

How To Open A Automotive Shop: A Comprehensive Guide - 2024

One comment.

Pingback: How To Open A Automotive Shop: A Comprehensive Guide - 2024 - Small Businnes Up

Dave C. ★★★★★ Dave loved the fast delivery My relocation to Chicago was fast, smooth and without any delay thanks to A1 Auto.

Courtney J. ★★★★★ Courtney enjoyed the honest guidance Just what you need when trusting someone with your wheels! Kudos to this company!

Jeff D. ★★★★★ Jeff enjoyed the fair price Moved my ride hassle-free with these folks.Fair pricing, no surprises. Definitely recommend them!

Maria L. ★★★★★ Maria enjoyed the special care and safety Huge thanks to the movers – they were meticulous with my car. Love these guys.

“A1 Auto Transport became synonymous with top-notch service delivery, unfailing punctuality and constantly preoccupied with customer satisfaction. ” See Article — USA Today

How to Start a Car Hauling Business: A Step-by-Step Guide

Published by Joe Webster .

How Much Does an Auto Hauler Make In a Year?

Benefits of owning a car hauling business, how much does it cost to start a car hauling business, setting up your car hauling business, choose your car hauling business model, define your budget, research the industry, what are they doing correctly, what are they doing wrong, how can i stand out, get your operating authority (mc + dot numbers), create a business plan for your car hauling company, register your transportation business, get the right equipment, insure your vehicles, trailers, and client cargo, set up your business office, hire employees, vital qualifications to check before you hire a driver, how to market your car hauling business, start hauling cars, how to make your car hauling business more profitable, where to find the best car haulers for your business.

How to Start a Car Hauling Business: A Step-by-Step Guide

Starting a car hauling business from scratch can be daunting, but it is also an enriching journey.

From the legalities of transporting cars across state lines to the equipment you will need to get the job done, there are a lot of details to address.

In this article, we will walk you through each step of starting a successful car hauling business. You'll get actionable advice on the many aspects of setting up your car transport business.

Typically, an auto transport business with a contract to haul new vehicles for a car producer will likely make $75,000 to $110,000 per year.

Additionally, as long as people drive cars, there will continue to be high demand. Your services will be needed by car dealers, individuals transporting their vehicles across state lines , etc.

That way, you're assured of continuous and repeat business.

There are many benefits that come with starting your own car hauling business.

For one, you'll be your own boss and have the freedom to set your schedule. As an owner-operator, you'll have the opportunity to grow your business as large as you want it to be.

Another benefit is that you can start with very little money. You don't need to have a lot of capital - all you need is a truck, the necessary equipment, and relevant licenses and documentation.

Finally, starting your own business is very rewarding. It's a great feeling to be your own boss and build something from scratch.

los-gatos-auto-shipping-car-estimate-state-to-state.jpg

The cost of starting a car hauling business can vary depending on a few factors, such as the size of your operation and the equipment you already have.

You can get by with just a truck and some essential equipment if you're starting a small operation.

If you're starting a more extensive operation, you may need to purchase additional trucks and trailers. This can cost anywhere from $30,000 to $100,000.

Additionally, you will need to obtain the necessary licenses and permits to operate your business. The cost will vary depending on your location.

Finally, you'll need to purchase insurance for your business. This is a mandatory expense and can cost anywhere from $500 to $5,000 per year, depending on the size of your operation.

That brings the total startup costs to $15,000 - $100,000+

Here are some key steps to starting a successful car hauling business:

There are two main types of auto hauling businesses: contract-based and customer-based.

A contract-based business regularly hauls cars for a specific company or dealership. This type of business is usually more stable and predictable, but it can be harder to get started.

In contrast, a customer-based business works with individual customers who need their cars transported. This type of business is often more flexible, but it can be less predictable.

Like every other business, you need money to start your trucking business.

So, calculate the amount you have on hand. If it's not enough, consider taking out a loan from a bank or from family and friends.

Another option is to get into a partnership or look for an investor. In either case, you must have a business plan first.

Once you have decided on the type of business you will operate, it's time to research the market, other trucking companies, and your ideal clients.

To avoid legal issues down the road, find out what business license, or permit, is required in your state or province.

You will also need to research the regulations for auto transport. This information can be found at your local Department of Motor Vehicles (DMV) or Transportation Department.

In general, you'll need:

A commercial driver's license (CDL)
Permits to transport cars across state lines
Dealer Transport License (if you're transporting cars for dealerships)
International Registration Plan (IRP) apportioned plates (especially if you're hauling cars across different jurisdictions)

You'll also want to research your competitors to answer three major questions:

There are already many successful companies within the trucking industry. Find out what they're doing well so your business can do likewise. There's no need to reinvent the wheel.

One way to make your startup stand out is to discover what the other car transport businesses are doing wrong and make sure your business does better.

You can find this information through customer complaints on review platforms or face-to-face interviews with potential customers.

Once you see how your business can do better than other companies, use this information for your key value propositions.

For instance, if your competitors are known for late deliveries, then early delivery is a fundamental value proposition for you to leverage.

state-auto-shipping-car-estimate-port-of-los-angeles.jpg

The next step is to get your Motor Carrier (MC) number and Department of Transportation (DOT) number. You will need these numbers to operate legally as an interstate carrier.

The Department of Transportation (DOT) number is a unique identification number assigned to trucking companies. It is used to track a company's compliance with safety regulations.

To get a DOT number, you'll need to fill out an application and submit it to the Federal Motor Carrier Safety Administration (FMCSA). You'll provide some basic information about your business, such as your company name and address. There is no fee.

To get your MC number, fill out an application with the Federal Motor Carrier Safety Administration (FMCSA) on their website. There is no fee to apply for an MC number.

An important note: You must purchase your trucks and insure them within 30 days of getting your DOT number. Otherwise, your new company will be shut down before you even start.

The next step is to create a car hauling business plan. It's an important document you'll need to source for funding from investors, track your business's progress, and make improvements as the case may be.

This document will outline your business goals, strategies, and how you plan on achieving them. Your business plan should include:

An executive summary
Your business goals and objectives
A market analysis
Your marketing strategy
Your financial projections

Creating a business plan may seem daunting, but many resources are available to help you. The Small Business Administration has a great guide that walks you through each step of creating a business plan.

Your business must be registered to operate legally.

You may want to seek the help of a certified business consultant or tax professional to set up your new company.

You'll need to get your Employer Identification Number (EIN) from the Internal Revenue Service.

An important step is to purchase equipment for your business.

If you're starting a customer-based business, you will need a large truck or trailer to transport at least one car.

You will also need some basic tools to secure the car during transport, such as straps and tie-downs.

But for a contract-based business, you will need a fleet of trucks or trailers. You will also need to invest in some storage space, such as a garage or warehouse, to store the cars you are transporting.

Before you buy new equipment, assess the equipment you already have. To cut costs, you may choose to lease your vehicles rather than purchase new ones. Then, as your business develops, you can purchase your own vehicles as needed.

Here's a checklist of the equipment you'll need:

Electronic logging device
Vehicles: pickup trucks or semis, car haulers
Storage space (a warehouse)
Straps and tie-downs
Toll transponders
Business cards

Another key step is to get the proper insurance for your business.

You will need two types of insurance: liability insurance and cargo insurance.

Liability insurance covers any damage you may cause to other people or property while transporting a car.

Cargo insurance covers any damage that may occur to the car during transport. It is commensurate with the value of the vehicle you're transporting.

You may also want to consider getting uninsured or underinsured motorist coverage, which will protect you if you're in an accident with a driver who doesn't have insurance.

The amount of coverage you need will vary depending on the size and scope of your business. But in general, it's a good idea to get as much coverage as you can afford. That way, if something does happen, you'll be covered.

You can get insurance quotes from a commercial insurance company specializing in trucking companies. But to get the best deal, shop around and compare rates before you purchase an insurance policy.

south-gate-heavy-equipment-hauling-and-shipping-insurance.jpg

Your company will need a business office to track expenses, invoices, and other vital documents.

Your office will need a computer with internet access, a printer, and a filing system.

You can use accounting software to keep track of your finances and generate invoices. Many great accounting software programs are available, such as QuickBooks, FreshBooks, and Xero.

Finally, you'll need a way to accept payments from your clients, which could be through a merchant account with a bank or credit card processor. Also consider using an online payment system, such as PayPal or Stripe.

If you're planning on growing your business, you will need to hire employees. And to make your business successful, you must hire the right people.

Aside from drivers, you will need to invest in some dispatch systems and office staff to handle customer service and scheduling.

To find suitable employees, start by posting ads on online job boards, such as Indeed or Monster. When reviewing applications, be sure to check references and conduct background checks.

After you've hired your employees, be sure to do regular check-ups on their progress; this helps ensure that they adhere to safety standards and driving regulations. It also builds trust and loyalty between employer and employee.

Before you hire a driver, it's crucial to check their:

Class A Commercial Driver's License (CDL). Anyone driving a vehicle with a gross vehicle weight of 26,000 lbs. and above must have a CDL in the US.
Previous driving record or experience. It's vital to do a background check to gauge their adherence to safe driving, their reliability, etc.
Knowledge of loading and unloading techniques, including tie-down techniques and how to properly distribute weight.

Once you've got everything set up, it's time to market your car hauling business.

The best way to do this is through word-of-mouth marketing. Tell family and friends about your business and ask them to spread the word.

It's also essential to invest in a quality website. A good website will be the easiest way for customers to find your business. There are many companies that can help you design a website that will attract customers.

Now that you're done with each step, it's time to start hauling cars.

You can join a load board to get clients consistently. Examples of such load boards include:

Carload board
Central Dispatch
Car Hauler's dispatch
DAT Load Boards
ready logistics

Another way to get clients is to contact car dealerships and auto transport companies in your area. They are always in need of a car hauler to transport vehicles from one location to another.

Be sure to give them your rates and let them know what services you provide. But before you give them your rates, investigate what other owner-operators charge.

Another way to find customers is to contact auto auctions and ask if they need a car hauler to transport vehicles to and from the auction site.

In most cases, maintaining a business is more challenging than starting one. And that's because most owners are unable to generate profits continuously.

To ensure that your new car hauling company lasts for a long time, do these three things:

First, invest in GPS tracking for your vehicles. This will allow you to track their location in real-time and ensure that they are on schedule. It may cost a lot of money, but it's a small price to pay to satisfy your customers.

Second, create a standard operating procedure (SOP) for your business. This will help to streamline your operations and make them more efficient.

Third, invest in some quality marketing materials, such as business cards, flyers, and websites. This will help you attract more customers and grow your business.

If you're looking for a reliable and professional car hauler for hire, then you've come to the right place.

At A-1 Auto Transport, we’re reputable and reliable car transporters with years of experience in hauling, transporting, and shipping cars. We are happy to help you with any kind of vehicle shipment or to answer any questions you might have. Contact us today for more information.

Joe Webster always knew the auto transport industry would be a great career option. And with decades of experience, Joe is now an established consultant for A1 Auto Transport.

Joe was born in Santa Cruz, California. During high school, Joe worked as a mechanic; a job continued to work part-time during his bachelor's degree.

...my choice in terms of auto transport has to be A1 Auto Transport. It’s in the name, but also in the quality with which they do their jobs. I’ve never had a problem with this company.

A1 Auto Transport... From the get go, they were very different from my past options. Their website was very professional and up to date, full of useful information. I requested a quote using their online form, and I got an email response within an hour. Surprisingly fast!

There are a lot of options for auto transport these days, which surprisingly makes it harder to find a good company. I received more than 10 offers to ship my car, but I couldn’t decide on any of them... Fortunately, I made the right choice with A1 Auto Transport.

We give A1 Auto Transport a big 10 out of 10! We chose them to move our car from California to Vermont, since we needed professionals.

Visit our social, and see what our clients are saying about us:

A-1 Auto Transport is a BBB Accredited Business

Our Partners:

A-1 Auto Transport is a disclosed agent for the following shipping companies:

No commitment

Before you go...

How to start a car hauling business

Running your own car hauling business may be a great idea, but you need to know exactly what is involved in getting started. Before you make any permanent plans, let us help you learn how to start a car hauling business.

TAFS is More than Freight Factoring

What is a car hauling business .

The term car hauling refers to transporting automotive vehicles from one place to another. Drivers engaged in this business are responsible for loading each vehicle onto a specially-designed trailer and ensuring that the vehicles are secure. They must also make sure the trailer meets all weight restrictions and safety standards.

As a rule, vehicle manufacturers and dealerships are not involved in the transport aspect of moving vehicles. This aspect of their business is handled by the trucking industry instead. Essentially, a car hauling business acts as a middleman between the shipper and the customer.

Car hauling can also mean shipping a car to a new location for individuals who move.

How does a car hauling business work?

When deciding how to start a car hauling business, you can choose to work with a broker who will help you get loads, find your own customers, or work for an auto transport company.

Pros & cons of owning a car hauling business

Owning a car hauling business sounds good in theory, but are you ready to take on the responsibility? Take a look at the pros and cons, and then decide whether you wouldn’t 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

10 steps for starting a car hauling business

Are you interested in the business of hauling cars but aren’t sure how to begin? The best way is to follow specific steps to avoid legal issues or other problems.

If you’re not sure how to start a car hauling business, here are 10 steps you need to follow:

Step 1: Get your CDL

The first step in starting a car hauling business is to obtain a CDL-A license. The license will make it easier to get insured, and fees will be cheaper.

In addition to the CDL , you need to obtain a standard “for-hire” authority to fulfill the company’s state and federal legal requirements.

Step 2: Create a business plan

Trying to start a new car hauling company without a business plan is setting yourself up for problems. For instance, you need to know what you’ll be hauling, where you can find customers, your goals, and how you plan to grow the business.

Your car hauling business plan will serve as a guide to help you handle unexpected responsibilities and costs. You may want to get professional help creating the business plan to make sure it’s realistic.

Step 3: Create your budget

Before starting any business, it’s important to know your overall costs. They may include initial, ongoing, and future costs. Do you know where your working capital is coming from, the daily operating costs, and how to cover unexpected expenses? Setting up a budget will help you plan for these costs.

Step 4: Get insurance quotes

In the car hauling business, the freight you carry is high-value. As such, insurance companies want to make sure you have adequate coverage. You can expect to carry about $2 million in liability insurance and $500,000 in cargo insurance.

Step 5: Learn how to load and unload properly

Loading and unloading an auto transport trailer is a complex process. It requires a lot of skill to ensure all moving parts come together properly. The driver must consider the size of each vehicle and the order in which they are to be unloaded.

Before starting a car hauling business, make sure you gain experience in this critical aspect of the profession.

Step 6: Fulfill legal requirements

Before you can hit the road with your car transport business, you will need several permits:

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

It’s important to pay the fees on time to avoid paying heavy fines or having your vehicle placed out-of-service.

Step 7: Purchase equipment and insurance

After applying your operating authority, you have 30 days to buy a truck and obtain insurance. If you fail to complete these steps, the DOT may shut down your operation.

Step 8: Set up contact information

At first, you may decide to work with a broker to get your business started, but it’s better to have an alternate plan. Setting up your business email and website is a step toward independence. When you generate your leads, you will increase revenues and build a reputation as a reliable, trustworthy car hauling company.

Step 9: Sign up for the load board

After the FMCSA approves your authority, your next step is to sign up for the load board . A load board is used by brokers, dealers, and carriers. You can use the board to find and book loads for a fee .

Step 10: Get to work

Stay legal, drive safely, and start making money. It won’t be easy, and you’ll make mistakes, but you’re off to a good start.

Are you ready to start hauling cars?

Hauling cars for a living can be a profitable venture if you plan well, stay up-to-date with regulations, and work hard. You may want to consider working with a logistics company to ensure that you get the loads you want, keep your company organized, and have the support and guidance you need in the early stages of your business.

You can make money hauling cars by transporting vehicles for dealerships, auctions, or individual clients and charging fees based on distance and services provided. One satisfied customer leads to another and ensures repeat business.

Get the right equipment, licenses, and insurance, and gain experience loading and unloading vehicles. Next, create a business plan, and determine where your operating capital is coming from.

It depends. Hotshot car hauling can be lucrative if you have the right setup, skills, and clientele. Research thoroughly before deciding.

We are excited to announce the launch of move.freightwaves.com , a revolutionary resource designed to transform how consumers choose auto-shipping companies. Check it out today!

More From Careers

Hot shot guide: 5 best small loads for pickup trucks, how hot shot load boards can kickstart your business, how to start a trucking company with no money, best trucking companies that offer paid cdl training.

FreightWaves Ratings reference a list of approved sources for use of research to support editorial research and drafting. These include the Federal Motor Carrier Safety Administration, U.S Department of Transportation, Better Business Bureau®, International Fuel Tax Association, Inc, Federal Highway Administration, additional Federal, State, and Local government websites, internal data compiling, original research, and commentary from industry experts.

As one of the industry leaders, TAFS assists trucking companies to increase cash flow with some of the lowest factoring rates in the industry and a 1-hour advance option.

TAFS Freight Factoring

As one of the industry leaders, TAFS assists trucking companies to increase cash flow with some of the lowest factoring rates in the industry and 1-hour advance option.

PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
EDIT Edit this Article
EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
Browse Articles
Learn Something New
Quizzes Hot
This Or That Game
Train Your Brain
Explore More
Support wikiHow
About wikiHow
Log in / Sign up
Finance and Business
Business by Industry
Automotive and Transportation Businesses

How to Start an Auto Transporting Business

Last Updated: April 13, 2024 Approved

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 33 people, some anonymous, worked to edit and improve it over time. There are 10 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 14 testimonials and 93% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 351,293 times. Learn more...

Thanks to new technologies to make auto transporting more energy-efficient, it's becoming ever more popular as an eco-friendly way of moving cars. Starting an auto shipping business can be a rewarding endeavor, but you might have questions like how to get started and how much it will cost. That's where we come in. Our how-to guide has all the info you need to start your own car hauling business.

Step 1 Determine what type of auto transporting business you want to start.

For a regular auto transporting business, purchase at least one open car hauler.
For a specialized auto transporting business, purchase at least one enclosed car hauler, a winch, hydraulic liftgate, and high-strength tie-down straps.

Step 11 Approach auto transporting brokers to be included on their subcontractors' list.

Community Q&A

If you're operating more than one car hauler, invest in transportation tracking software that shows you where all your car haulers are through a satellite tracking system. Thanks Helpful 24 Not Helpful 10
Consider starting a website where customers can book auto transporting services online. Include information about your services and provide free quotes. Thanks Helpful 14 Not Helpful 8

Before you hire employees, make sure they have their commercial driver's licenses and clean driving records. Thanks Helpful 55 Not Helpful 11

Things You'll Need

Commercial driver's license
Business plan
Motor carrier number
Transportation license
Hydraulic liftgate
High-strength tie-down straps
Transportation tracking software

↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
↑ https://www.gaebler.com/Starting-an-auto-transport-business.htm
↑ https://driving-tests.org/how-to-get-a-cdl-license/
↑ https://www.entrepreneur.com/article/281416
↑ https://www.inc.com/guides/present-your-business-plan.html
↑ https://www.fmcsa.dot.gov/registration/get-mc-number-authority-operate
↑ https://www.upcounsel.com/how-to-start-a-transportation-business
↑ https://www.entrepreneur.com/article/283832
https://bizfluent.com/how-6901151-start-car-transport-business.html
https://www.gaebler.com/Starting-an-Auto-Transport-Business.htm

About This Article

Send fan mail to authors

Reader Success Stories

Brandon Cook

Sep 9, 2017

Did this article help you?

Keith Cokely

Dec 3, 2016

Aug 18, 2018

Aug 6, 2016

Aug 13, 2016

Featured Articles

Cut Ties with Family Members Who Hurt You

Watch Articles

Terms of Use
Privacy Policy
Do Not Sell or Share My Info
Not Selling Info

wikiHow Tech Help Pro:

Develop the tech skills you need for work and life

How to Start a Car Hauling Business

Starting a car hauling business is a venture filled with opportunities, but navigating the process requires a detailed plan and some basic info. As a team of ex-haulers ourselves, we understand this journey firsthand.

All the challenges and flaws we’ve witnessed in the niche inspired us to create HaulK, a specialized platform to fill some gaps and make car hauling management much easier.

But every ambitious hauler must first go through a bunch of business kick-off and organization stages that can’t really be automated or paid for. In this guide, we share our insights to help you build a successful car hauling business .

Create a roadmap and plan things out

Before diving headfirst into the practicalities of car hauling, it's essential to grasp the broader landscape of the transportation and logistics industry. A solid understanding of logistics is not just beneficial; it's crucial for the smooth operation and growth of your business. This is where learning how to get into logistics comes into play.

By familiarizing yourself with the ins and outs of logistics, from the flow of goods to the intricacies of supply chain management, you equip yourself with the knowledge to make informed decisions and strategize effectively. Whether you're negotiating with clients or planning the most efficient route for a haul, a foundational understanding of logistics principles can set you apart in the competitive car hauling market.

Any business foundation crumbles without a sturdy plan backing it up. So start with some brainstorming and priority settling.

Draft a detailed car hauling business plan that outlines your:

goals, aspirations, and expected milestones;
target market, target audience, niche trends, and direct competitors;
selling points, marketing ideas, and promotion strategies;
overhead budget, financial projections, and growth strategy.

Keep it open-ended - this document will serve as your baseline and guide through the various stages of business development.

Settle on a business type

Another crucial point of your plan is the structure of your business — is it a sole proprietorship, partnership, LLC, or corporation? Each has its own implications for liability, taxation, and operations.

Apart from that, you may not be sure what exact type of trucking services to provide just yet. Here are some ideas:

Local car hauling — moving vehicles in the immediate vicinity;
Long-distance hauling — interstate or cross-border hauling services;
Transport shipping — transportation of vehicles across deep-sea and coastal areas.

You can start small and move on beyond the border. It all depends on your business capacities and ambitions.

Get a truck and/or trailer

Your vehicle is the lifeline of your business. Whether you'll drive one yourself or hire drivers, you need sturdy, high-quality vehicles that can be safely certified and used for work. This calls for separate research to make on your own — you can try to save a little by opting for a used truck or trailer.

You may as well find some cheaper options that can still do the trick and handle work conditions. All in all, make sure to invest in reliable trucks and trailers that match your budget and business goals.

What Size Trailer Do You Need to Haul Cars

Obtain a CDL

A Commercial Drivers License is a legal permit to use heavy-duty trucks and haul huge loads (with a total weight of 26,000 lbs and beyond) on a commercial basis. It is also proof of the trucker’s ability to handle strictly commercial aspects of road driving, like pre-trip inspection, GVWR check, etc.

A Class A CDL is the go-to license for those looking to operate professionally and work with non-conventional loads (e.g., more than two-three light vehicles). However, certain providers prefer Non-CDL hauling, which is possible but riddled with nuances (learn more about all the nuances of CDL in our article).

Keep up with other legal requirements

CDL isn’t the only necessary permit you must obtain. There are also federal and state regulations governing the transportation industry. This includes vehicle registration, tax regulations, and compliance with safety standards. Ignorance of the law is not an excuse, so knowledge is your shield.

You will have to get an MC (Motor Carrier) number assigned by the FMCSA and fulfill all USDOT requirements . The taxes and fees you’ll need to cover for safe commercial performance include:

UCR — Unified Carrier Registration fees;
HVUT — Heavy Vehicle Use Tax;
IFTA — International Fuel Tax Agreement taxes;
DOT — Department of Transportation fees;
IRP — International Registration Plan taxes.

Yes, handling all that single-handedly can be quite confusing. This is why you should also consider hiring a Process Agent at this stage. A qualified professional will help you organize all legal paperwork, prepare documents, and help with court papers.

Hire drivers for a crew

Assembling a trucking business crew, look for qualified (best off certified ) professionals with years of field experience. Again, this calls for some independent research. Look for specialists with a registered CDL or those ready to apply for one. Your area of search can start with LinkedIn and Craigslist and span to all reputable job boards you can find online.

Insure your business

With all the resources, effort, and nerves invested into it, it’s only logical to protect your newly organized business from potential losses through timely insurance. While newly bought trucks may come insured “out-of-the-box” (you will only need to prolong and maintain the insurance), there are two types of insurance you must cover as a business owner:

Life insurance — compensation for physical risks you or your truckers take upon themselves.
P&C insurance — protects private belongings and compensates for accidents.

Seek financing

Determine your financial needs and explore financing options. You need to secure the necessary funds to both kickstart and sustain your car hauling business, be it through loans, grants, or investors. Right off the bat, make sure to have a separate business bank account for these purposes.

The burning question is, how much exactly can a car transportation business cost? Let’s break this down:

Insurance: Depending on a particular type of coverage — $800-$1,500.
CDL: Depending on the state and school — ~$100 fee for test completion and CDL registration.
Equipment: Trucks (both new and used) can come in the $15,000 to $180,000 price range, with about a $1,000-10,000 down payment.
Operating authority: MC acquisition and USDOT fee can make up to ~$300.
Auto transport carrier fixed and variable costs: All of the above, plus the fleet’s tech needs and monthly legal fees, add up to a very ranged approximate number. Such expenses can only be calculated in action. Make sure to use a reliable TMS to track all costs.

If you already have an overhead budget, it’s good to plan out how you will accumulate and maintain it in the future. Keep in mind that a car transport business with a fleet, employees, and active operations is more interesting to investors and potential partners, so you may take your time establishing before going off to search for external financing.

Subscribe to a load board and carrier TMS

Once you’re all set and ready to take on the road, you need jobs. You can find your first load to transport on one of the top load boards in the USA :

Centraldispatch.com;
uShip Car Hauling.

Now, the most important thing is to tie things up and structure your business in a productive, cost-efficient, and reliable format. You can do that by adopting a feature-rich TMS — a transportation management system with collaborative, communication, and monitoring tools.

Look for a reliable platform with active expert support that gives you:

Storage for order-related data and other BI;
Digital automation tools, like e-signatures and paperwork sharing;
Dashboards or any sort of reporting features;
Features for digitized order and fleet management.

For instance, HaulK offers a robust solution for managing orders efficiently — try it out for free .

And good luck with starting a profitable vehicle transport business !

How to Start a Car Hauling Business: A Comprehensive Guide

Are you a car enthusiast with a passion for driving? Do you have a keen eye for detail and love the idea of transporting vehicles safely and efficiently? If so, starting a car hauling business might be the perfect venture for you! Whether you’re looking to turn your passion into a profitable business or simply seeking a new challenge, this comprehensive guide will walk you through the process of starting your very own car hauling business.

Getting Started: Planning and Research

Before diving headfirst into the car hauling industry, it’s crucial to conduct thorough planning and research. This initial step will lay the foundation for your business, helping you make informed decisions and set realistic goals.

Understanding the Car Hauling Industry

To start, familiarize yourself with the car hauling industry. Gain insight into the market demand, competition, and industry trends. This knowledge will enable you to identify opportunities and develop a unique selling proposition for your business.

Defining Your Target Market

Determining your target market is essential for any business. Identify the specific types of customers you wish to serve, such as dealerships, auction houses, or individual car owners. Understanding your target market will help you tailor your services and marketing strategies accordingly.

Creating a Business Plan

Crafting a well-thought-out business plan is crucial for success. Outline your business goals, financial projections, marketing strategies, and operational procedures. A comprehensive business plan will not only guide you throughout the startup phase but also serve as a valuable tool when seeking financing or partnerships.

Setting Up Your Car Hauling Business

With your business plan in hand, it’s time to set up your car hauling business. This section will cover the necessary steps involved in establishing your company and ensuring legal compliance.

Business Registration and Licensing

To operate legally, you must register your car hauling business with the appropriate authorities. Visit your local government office or website to learn about the specific licenses, permits, and insurance requirements for your area. It’s crucial to comply with all regulations to avoid any legal issues down the road.

Securing Financing

Starting a car hauling business may require a significant initial investment. Consider your financing options, such as personal savings, loans, or investors. Explore different sources of capital and determine the best fit for your situation. A solid financial foundation will provide stability and allow for future growth.

Acquiring Equipment and Resources

To transport vehicles efficiently, you’ll need to invest in the necessary equipment and resources. Purchase or lease reliable car hauling trailers, securement equipment, and vehicle tracking systems. Additionally, ensure you have access to a reliable fleet of trucks capable of safely towing the trailers.

Building a Network of Partnerships

Establishing strong partnerships within the car hauling industry is vital for your business’s success. Connect with local dealerships, auction houses, and other potential clients to build relationships and secure contracts. Leverage your network to gain referrals and expand your customer base.

Operations and Logistics

Once your car hauling business is up and running, it’s time to focus on the day-to-day operations and logistics. This section will provide insights into managing your fleet, optimizing efficiency, and ensuring customer satisfaction.

Fleet Management and Maintenance

Your fleet of trucks and trailers is the backbone of your business. Implement a comprehensive fleet management system to track maintenance schedules, fuel consumption, and driver performance. Regularly maintain and service your vehicles to ensure they remain in optimal condition, reducing downtime and enhancing reliability.

Hiring and Training Drivers

Skilled and reliable drivers are crucial to the success of your car hauling business. Develop a rigorous hiring process to recruit experienced drivers with clean driving records. Provide comprehensive training to ensure they understand proper vehicle securement, safety protocols, and customer service. Regularly evaluate their performance to maintain a high standard of service.

Establishing Efficient Routes and Schedules

Efficiency is key in the car hauling industry. Optimize your routes and schedules to minimize empty miles and maximize load capacity. Utilize technology such as GPS tracking and route planning software to streamline operations and reduce fuel costs. Consistently monitor and adjust your routes to adapt to changing customer demands and market conditions.

Prioritizing Customer Service

Providing exceptional customer service is paramount in the car hauling industry. Communicate clearly with your customers, keeping them informed about the status of their vehicles throughout the transportation process. Address any concerns promptly and professionally, going the extra mile to exceed customer expectations. Happy customers are more likely to become repeat clients and refer your services to others.

Q: How much does it cost to start a car hauling business?

A: The cost of starting a car hauling business can vary depending on factors such as equipment, insurance, and marketing expenses. On average, it can range from $50,000 to $150,000 or more.

Q: Do I need a CDL (Commercial Driver’s License) to operate a car hauling business?

A: Yes, a CDL is typically required to operate a car hauling business. The specific requirements may vary depending on your location and the weight of the vehicles you plan to transport.

Q: How can I find clients for my car hauling business?

A: Building a network of partnerships within the automotive industry is an effective way to find clients. Connect with local dealerships, auction houses, and car rental companies. Additionally, establish an online presence, optimize your website for search engines, and leverage social media platforms to reach a wider audience.

The domain LUNARAUTOMATIONS is no more associated with the previous owners.

The domain was involved in a big scam in which the owners guarantees that a client's store will do $50,000/month in sales within 6 months or they will work for free until they get you there.

Now, the ownership has changed, We’ve acquired the domain using GoDaddy auctions for a premium price because of love for the name. Although, we get a few abuses from the people who still visit the site thinking that it was we who scammed them, we have nothing to do with the previous owners.

Contact Us:

[email protected]

How to Start a Car Hauling Business in 2023 – Step by Step Business Guide

Last updated on September 20th, 2023 at 10:52 pm

Beginning a car hauling business will take you on an exciting but uncertain path. It’s wonderful to be somewhere between being your boss and driving automobiles you’ve never driven before. Yet, the road to success will be long and difficult, especially if you have no idea what you’re doing or how you’re going to get there.

It’s critical to get your car hauling business off to a good start. This includes taking the necessary precautions to avoid legal problems. You must also aim to make your experience as easy as possible, with few hitches.

Read on to learn more about the car hauling business and how you can start it like a boss in 2023.

What Is a Car Hauling Business?

Car hauling is the transportation of automobiles from one location to another. Drivers in this industry are in charge of loading each car into a specifically constructed trailer and assuring the vehicles’ safety. They must also ensure that the trailer complies with all weight constraints and safety regulations.

Vehicle manufacturers and dealerships are often not engaged in the transportation component of transferring automobiles. Instead, the trucking industry handles this portion of their company. A car hauling company essentially works as a go-between for the shipper and the customer.

Car hauling may also refer to moving an automobile to a new area for those who are relocating.

What Are the Advantages and Disadvantages of Owning a Car Hauling Business?

In principle, owning a car hauling business seems appealing, but are you prepared to shoulder the responsibilities? Consider the advantages and disadvantages, and then determine if you would be better off working on your own or with a trustworthy firm.

Advantages of Car Hauling Business

Growing industry that can be beneficial for you
The profit margin is very high
Be the boss of your own company
Business brand building
Better visibility thanks to open trailers

Disadvantages of Car Hauling Business

The cost of maintenance can be high
High licensing cost
Establishing can be difficult
Responsibilities increases

What Is the Start-up Cost of a Car Hauling Business?

A car hauling business might cost between $7,000 and $15,000. The most expensive item is a down payment on a 7-car hauler trailer, which may cost anywhere from $35,000 used to $70,000 or newer.

Easy Steps to Start a Car Hauling Business

Are you planning to start a car hauling business but don’t know where and how to start? The easiest method to avoid legal troubles or other problems is to take certain steps.

Listed below are a few steps that can help you start a car hauling business:

Step-1: Prepare the business plan- Starting a new car hauling business without a business strategy is a recipe for disaster. For example, you must understand what you will be hauling, where you may find consumers, your goals, and how you want to build the firm. Your car hauling business plan will act as a guide to assist you in dealing with unanticipated duties and expenditures. You may wish to seek expert assistance in developing the business strategy to ensure its viability.

Step-2: Obtain your CDL- After you have created the plan for the business, you must obtain a CDL-A license . This will help the company to get insured with ease and the fees would also be less. You may also need a standard “for-hire” authority to fulfill the company’s federal and state legal requirements that are necessary.

Step-3: Decide on the correct equipment- The following step is all about getting the right equipment. You’ll need to decide what kind of truck/trailer you want and then check around for prices. Many individuals select their equipment based on the route they want to take. A greater price tag implies a better profit potential. Only you can choose the best one, but keep in mind your travel goals as well as your financial situation.

Step-4: Plan your budget- Understanding your whole costs before launching any firm is critical. These include one-time, continuing, and future expenses. Do you understand where your working capital comes from, what your daily running expenditures are, and how you will handle unforeseen expenses? Making a budget will help you plan for these expenses.

Step-5: Obtain insurance quotes- The freight you transport in the car hauling industry is of tremendous worth. As a result, insurance providers want to ensure that you have sufficient coverage. You should have $2-4 million in liability insurance and nearly $600,000 in cargo insurance.

Step-6: Learn to load and unload properly- It is a difficult task to load and unload an auto transport trailer. It takes a great deal of skill to guarantee that all moving components work properly. The driver must take into account the size of each vehicle as well as the order in which they are to be unloaded. Make sure you obtain expertise in this crucial area of the job before launching a vehicle hauling firm.

Step-7: Ensure that all legal requirements are fulfilled- You will need several permits before you can start your car transport business, including UCR (Unified Carrier Registration), IFTA (International Fuel Tax Agreement taxes), IRP (International Registration Plan taxes), HVUT (Heavy Vehicle Use Tax), DOT (Department of Transportation fees) , and an MC Number. It is critical to pay the fees on time to prevent incurring large penalties or having your vehicle impounded.

Step-8: Signing up for the load board- When the FMCSA has approved your permission, you must register with the load board. Brokers, dealers, and transporters utilize a load board. The board may be used to find and book loads for a price.

Step-9: Get to work and make money- The final stage is self-evident. Maintain your legal status and drive carefully. It’s time to start generating money once you’ve begun locating loads and acquired a feel for the load board. It will not be easy, and you will make errors, but you are on the right track.

Finally, you can start your own car-hauling business with the above-mentioned tips. Car hauling for a living may be a successful business if you prepare ahead of time, remain up to speed on rules, and work hard.

Top 3 New Casinos in Poland
Unlock Your Car’s Performance Potential with Our Tuning Stages Guide

Effective Strategies for Maximizing Personal Injury Settlements in Overland Park

5 Safety Tips for Drivers: Stay Safe on the Road

Top 5 Reasons to Lease a Van Instead of Buying a Personal Vehicle

How to Start a Car Hauling Business: 5 Easy Steps

If you have a passion for cars and are looking to start your own business, a car hauling business can be an exciting and profitable opportunity. Car hauling involves transporting multiple vehicles at once, providing a valuable service to individuals, dealerships, and businesses in the automotive industry. Whether it’s transporting newly manufactured cars from factories to dealerships, delivering vehicles for auctions, or catering to the needs of car enthusiasts who require vehicle transportation, a car hauling business plays a vital role in the automotive ecosystem.

Starting a car hauling business requires careful planning, knowledge of the industry, and the ability to deliver exceptional service. By following the right steps and strategies, you can establish a successful car hauling venture that not only meets the needs of your customers but also contributes to your own professional and financial growth. You will know how to start a car hauling business in this comprehensive article.

Step 1: Research and Planning

Step 2: obtain the necessary licenses and permits, step 3: acquire the right equipment, step 4: build a network and establish partnerships, step 5: market your car hauling business, how much does a car hauling business cost.

Before launching your car hauling business, it’s important to conduct thorough research and develop a solid plan. Familiarize yourself with the car hauling industry, market demand, and competition in your area. Determine your target market and identify potential clients. This research will help you understand the industry dynamics, assess the viability of your business, and develop effective strategies to differentiate yourself from competitors.

Here are some key aspects to consider during this research phase:

Industry Overview: Gain a comprehensive understanding of the car hauling industry, including its current state, trends, and future projections. Identify the main players, their services, and pricing models. This will help you identify gaps and opportunities for your business.
Target Market: Define your target market based on demographics, geography, and specific needs. Determine if you will focus on individuals, dealerships, auctions, or a combination. Assess the demand for car hauling services in your target market and analyze the competition in that area.
Business Differentiation: Research the existing car hauling businesses in your area and identify their strengths and weaknesses. Determine how you can differentiate your business by offering unique services, competitive pricing, or exceptional customer service. Understanding your competitors will help you position your business strategically.
Pricing and Profitability: Study the pricing models of other car hauling businesses and calculate your own pricing structure. Consider factors such as distance, vehicle type, and additional services. Ensure that your pricing is competitive yet profitable, taking into account your operational costs and desired profit margins.
Marketing Strategies: Explore effective marketing strategies to promote your car hauling business. Identify the most suitable channels to reach your target market, such as online platforms, industry associations, and local networking events. Develop a marketing plan that includes branding, online presence, advertising, and lead generation strategies.
Operational Considerations: Research the operational aspects of running a car hauling business. Determine the equipment you’ll need, such as car hauling trailers, loading and unloading tools, and vehicle securing mechanisms. Understand safety regulations, insurance requirements, and maintenance protocols to ensure compliance and smooth operations.

Want to write a business plan? Get help from top business plan writers now!

To operate a car hauling business legally, you’ll need to obtain the necessary licenses and permits. Contact your local Department of Motor Vehicles or transportation authorities to understand the specific requirements in your area. Common licenses and permits include motor carrier authority, USDOT number, and FMCSA registration. Ensure that you comply with all regulations and obtain the proper documentation before starting your operations.

Follow these steps to navigate the licensing process effectively:

Research Local Requirements: Begin by researching the licensing and permit requirements specific to your area. Contact your local Department of Motor Vehicles or transportation authorities to gather information on the necessary permits and licenses for a car hauling business. Each jurisdiction may have its own set of regulations, so understanding the local requirements is crucial.

Motor Carrier Authority: In many cases, obtaining motor carrier authority is a fundamental requirement for car hauling businesses. This authority grants you the legal right to operate as a commercial carrier. Research the specific application process and any associated fees for obtaining motor carrier authority in your jurisdiction.

USDOT Number: The United States Department of Transportation (USDOT) number is another important identification requirement for businesses involved in interstate commerce. Determine if your car hauling business will be engaged in interstate operations, as this will likely necessitate obtaining a USDOT number. Consult with the USDOT or local transportation authorities to understand the application process.

FMCSA Registration: The Federal Motor Carrier Safety Administration (FMCSA) registration is typically required for businesses involved in interstate commerce. It involves registering your car hauling business and vehicles with the FMCSA. Research the FMCSA registration process and ensure you fulfill all the necessary requirements, such as insurance coverage and safety regulations.

Compliance and Documentation: Once you have identified the specific licenses and permits required for your car hauling business, gather the necessary documentation. This may include proof of insurance, vehicle registrations, safety certifications, and any other supporting documents required by your local authorities. Ensure that you have all the required paperwork in order to submit a complete and accurate application.

Application Submission and Follow-up: Follow the guidelines provided by your local Department of Motor Vehicles or transportation authorities to submit your license and permit applications. Pay attention to any required fees and submission deadlines. After submitting your applications, be proactive in following up to ensure timely processing and address any potential issues that may arise.

Download our 14 free business plan examples now!

Investing in the appropriate equipment is crucial for a car hauling business. Purchase or lease car hauling trailers that meet industry standards and safety regulations. Consider the capacity and types of vehicles you plan to transport to determine the right trailer size and features. Additionally, you’ll need loading and unloading equipment such as winches, ramps, and straps. Acquire reliable and high-quality equipment that will ensure the safe and efficient transportation of vehicles.

Follow these steps to ensure you have the right tools to safely and efficiently transport vehicles:

Assess Your Needs: Begin by assessing your business requirements and determining the types of vehicles you plan to transport. Consider factors such as the maximum weight capacity, vehicle dimensions, and the variety of vehicles you expect to haul. This assessment will help you determine the appropriate equipment specifications.

Car Hauling Trailers: Purchase or lease car hauling trailers that meet industry standards and safety regulations. There are various types of trailers available, including open carriers and enclosed trailers. Evaluate the advantages and limitations of each type based on your target market and the vehicles you plan to transport. Ensure that the trailers have proper tie-down points, secure loading ramps, and effective braking systems.

Trailer Size and Features: Consider the size and features of the trailers you need. The trailer size will depend on your hauling capacity requirements and the types of vehicles you plan to transport. Evaluate options such as multi-car carriers or single-vehicle carriers based on your business model and target market. Additionally, consider features like hydraulic or electric lift systems, adjustable ramps, and enhanced security measures for added convenience and safety.

Loading and Unloading Equipment: Alongside the car hauling trailers, you’ll require loading and unloading equipment to facilitate the safe transportation of vehicles. Invest in winches, straps, and securement devices to properly secure the vehicles during transport. Ramps and lift systems are crucial for efficient loading and unloading operations. Ensure that all equipment meets safety regulations and industry standards.

Quality and Reliability: Acquire reliable and high-quality equipment that can withstand the demands of car hauling. Choose reputable manufacturers or suppliers known for their durable and well-built trailers and loading equipment. Reliable equipment reduces the risk of breakdowns, ensures the safety of the vehicles being transported, and contributes to the overall professionalism of your business.

Maintenance and Inspection: Regularly inspect and maintain your equipment to ensure its proper functioning and adherence to safety standards. Implement a maintenance schedule for routine checks, servicing, and repairs. This proactive approach will help prevent breakdowns, extend the lifespan of your equipment, and maintain a high level of service reliability.

Going to write a business plan?

Need a business plan writer?

Building a strong network and establishing partnerships within the automotive industry is essential for the growth of your car hauling business. Network with local car dealerships, manufacturers, auctions, and other businesses that require vehicle transportation services. Attend industry events, join trade associations, and participate in online forums to connect with potential clients and partners. Collaborating with other industry professionals can lead to valuable referrals and business opportunities.

Follow these steps to expand your network and foster valuable connections:

Attend Industry Events: Participate in local and regional automotive industry events, trade shows, and conferences. These events provide excellent opportunities to connect with potential clients and industry professionals. Network with car dealerships, manufacturers, auto auctions, and other businesses involved in the automotive sector. Engage in conversations, exchange business cards, and showcase your expertise and services.

Join Trade Associations: Become a member of trade associations and organizations related to the automotive industry. These associations offer networking events, industry insights, and access to a community of professionals. Engage actively in association activities, attend meetings, and contribute to discussions. This involvement will help you establish your credibility and build relationships with like-minded individuals and businesses.

Utilize Online Platforms: Leverage the power of online platforms and social media to expand your network. Join online forums and communities dedicated to the automotive industry. Participate in discussions, share valuable insights, and connect with potential clients and partners. Utilize professional networking platforms like LinkedIn to showcase your expertise and establish connections with industry professionals.

Collaborate with Complementary Businesses: Identify businesses that complement your car hauling services and establish partnerships with them. This can include auto repair shops, vehicle storage facilities, car rental companies, or automotive detailing services. Collaborating with these businesses can lead to cross-referrals and mutually beneficial relationships. By offering integrated solutions to customers, you can create a more comprehensive and convenient service experience.

Offer Exceptional Customer Service: Providing excellent customer service is key to building a strong network. Prioritize client satisfaction by delivering vehicles on time, handling inquiries promptly, and addressing any concerns professionally. Word-of-mouth referrals from satisfied customers can significantly contribute to expanding your network and attracting new clients.

Maintain Long-Term Relationships: Building a network is not just about making initial connections; it’s about nurturing and maintaining long-term relationships. Stay in touch with industry professionals, clients, and partners through periodic communication. Attend networking events regularly and engage in follow-ups to strengthen your connections. By fostering trust and reliability, you increase the likelihood of repeat business and referrals.

Example: Building a strong network and establishing partnerships within the automotive industry is essential for the growth of your car hauling business. One successful example of a company that has effectively built its network and established valuable partnerships is “ AutoStar Transport Express .”

AutoStar Car Haulers has strategically networked with local car dealerships , manufacturers, and auctions to expand its client base and strengthen its position in the industry. By attending automotive industry events, such as trade shows and conferences, Autostar Transport Express has had the opportunity to connect with potential clients and establish valuable relationships with industry professionals.

To attract customers and increase awareness of your services, implement effective marketing strategies. Create a professional website that showcases your expertise, highlights your services, and includes contact information for inquiries. Utilize social media platforms to engage with potential customers, share informative content, and run targeted advertising campaigns. Consider attending automotive trade shows, advertising in local publications, and utilizing online directories to reach a wider audience.

Follow these steps to create a strong marketing presence for your business:

Professional Website: Develop a professional website that showcases your expertise, highlights your services, and provides essential information for potential customers. Optimize your website with relevant keywords and ensure it is mobile-friendly for easy accessibility. Include a clear call-to-action and contact information to encourage inquiries.

Social Media Presence: Establish a strong presence on social media platforms such as Facebook, Instagram, Twitter, and LinkedIn. Create engaging content related to car hauling, industry updates, and helpful tips. Share photos and videos of your equipment, successful deliveries, and satisfied customers. Interact with your audience by responding to comments, messages, and inquiries promptly.

Targeted Advertising Campaigns: Run targeted online advertising campaigns to reach a wider audience. Utilize platforms like Google Ads and social media advertising to promote your services to individuals and businesses in need of car hauling. Target specific demographics, geographical locations, and interests relevant to your target market. Monitor and optimize your campaigns to maximize your return on investment.

Participate in Trade Shows and Events: Consider attending automotive trade shows, expos, and industry events. Set up a booth to showcase your services and interact with potential clients. Engage in conversations, distribute promotional materials, and collect leads. Trade shows provide valuable networking opportunities and allow you to stay updated on industry trends.

Local Advertising: Advertise your car hauling business in local publications such as newspapers, magazines, and community newsletters. This targeted approach helps you reach potential customers in your area. Additionally, consider sponsoring local events or sports teams to increase brand visibility within your community.

Online Directories and Review Platforms: List your car hauling business on online directories and review platforms such as Google My Business, Yelp, and Angie’s List. Encourage satisfied customers to leave positive reviews, as they can significantly influence potential clients’ decision-making process. Respond to reviews, both positive and negative, in a professional and timely manner.

Referral Programs and Partnerships: Implement referral programs to incentivize satisfied customers and industry partners to refer clients to your car hauling business. Offer discounts, rewards, or commission-based referral systems. Additionally, establish partnerships with local car dealerships, manufacturers, and auto repair shops. These partnerships can lead to mutual referrals and collaborative marketing efforts.

To attract customers and increase awareness of your car hauling services, it’s essential to implement effective marketing strategies. One successful example of a company that excelled in marketing their car hauling business is “Global AutoMovers.”

Global AutoMovers created a professional and user-friendly website that showcased their expertise in car hauling and highlighted their comprehensive range of services. The website provided detailed information about their fleet of specialized car hauling trailers, safety measures, and their commitment to delivering vehicles on time and in pristine condition.

Utilizing social media platforms such as Facebook, Instagram, and YouTube, Global AutoMovers engaged with potential customers by sharing informative content about car hauling tips, industry updates, and success stories. They leveraged visually appealing images and videos to showcase their professional equipment and successful vehicle deliveries.

Fuel Your Financial Growth with Exciting Business Ideas!

A car hauling business can be profitable, with average annual profits ranging from $50,000 to $150,000 or more. Profitability depends on market conditions, competition, pricing strategy, and operational efficiency. Thorough financial planning and effective cost management are crucial for maximizing profitability.

Yes, it is possible to start a hauling business on a part-time basis. Many individuals begin by operating their hauling business alongside their current job or commitments. Starting part-time allows for gradual growth and a smoother transition into full-time operations as the business expands and customer demand increases.

To attract customers to your car hauling business, you can implement various strategies. These include creating a strong online presence with a professional website and utilizing social media platforms to engage with potential customers. Additionally, attending industry events, advertising in local publications, and leveraging online directories can help you reach a wider audience and attract customers to your services.

When it comes to earning potential, specialized hauling services often offer higher rates compared to general hauling. This includes transporting high-value vehicles, luxury cars, classic cars, or specialized equipment. These niche markets typically command premium prices, allowing for higher earning potential in the car hauling industry.

It is essential to familiarize yourself with safety regulations regarding vehicle securement, driver qualifications, maintenance inspections, and any specific regulations in your jurisdiction to ensure compliance and safe operations.

Quick Links

Investor Business Plans
M&A Business Plan
Private Placement
Feasibility Study
Hire a Business Plan Writer
Business Valuation Calculator
Business Plan Examples
Real Estate Business Plan
Business Plan Template
Business Plan Pricing Guide
Business Plan Makeover
SBA Loans, Bank Funding & Business Credit
Finding & Qualifying for Business Grants
Leadership for the New Manager
Content Marketing for Beginners
All About Crowdfunding
EB-5 Regional Centers, A Step-By-Step Guide
Logo Designer
Landing Page
PPC Advertising

Business Entity
Business Licensing
Virtual Assistant
Business Phone
Business Address
E-1 Visa Business Plan
EB1-A Visa Business Plan
EB1-C Visa Business Plan
EB2-NIW Business Plan
H1B Visa Business Plan
O1 Visa Business Plan
Business Brokers
Merger & Acquisition Advisors
Franchisors

Proud Sponsor of

1-800-496-1056

(613) 800-0227

+44 (1549) 409190

+61 (2) 72510077

Affiliate Marketing
Email Marketing
Sales Funnels
Business Ideas
Website Design
Video Marketing
Social Media
Network And Security
Real Estate Marketing
Motivation And Affirmation

How To Start A Car Hauling Business: A Comprehensive Guide

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here .

Starting a car hauling business can be a lucrative endeavor for those interested in the auto transport industry. With the right approach, it can offer an excellent opportunity for entrepreneurs looking to break into the trucking business. This guide will walk you through the essential steps and considerations for launching your car transport business, ensuring you're well-equipped to hit the road running.

Understanding the industry

Venturing into the car shipping business demands a deep dive into the industry's unique landscape. This sector, a specialized segment of the broader trucking industry, focuses on the transportation of vehicles, such as cars, trucks, and motorcycles, across various distances. Here's a breakdown of what you need to grasp before launching your car hauling venture:

About the author

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

How to start a car hauling business in 8 steps

You’re here because you want to know how to start a car hauling business and that’s precisely what I am going to help you do in this post.

Starting a car hauling business will take you on an unpredictable yet rewarding journey. Somewhere in the space between being your own boss and driving cars you’ve never driven before is exciting within itself. But the path to success will be a long and hard one, especially if you have no clue what you’re doing or how you’re getting there.

It’s so important that when you decide to start a car hauling business, or any business for that matter, you start it off on the right foot. This means making sure you follow the right steps so you don’t run into any legal issues and to ensure your experience goes as smoothly as possible, minimizing any potential hiccups.

When I started both my car hauling business and my auto transport broker business, I made so many mistakes. I wasn’t fortunate to have someone to turn to and ask questions or have someone to guide me. You see, it’s not always about the path someone took to success, usually it’s the mistakes they made that can prove the most valuable. Making sure you do not make those same mistakes.

Deciding to become a car hauler will bring you so much joy and happiness but with that comes stress, mistakes and confusion. Although I set out to guide you on the right path by sharing my advice on how to start a car hauling business with you, it doesn’t mean you won’t slip up a time or two. Because after all, even if Bill Gates or Warren Buffet told you exactly what they did to achieve success, I would bet my last dollar that you will still find many bumps in the road. Heck, you might be the one who simply doesn’t even make it.

With that said, the important thing here is making sure you start your business off right. Doing the right tasks in the beginning so you can be on your way to car hauling success.

How to start a car hauling business in 8 steps

With that out the way, let’s get started.

Step 1: Getting your CDL

Before you jump into starting your own car hauling business, you need to make sure you have your CDL A license. If you don’t yet have one, it’s worth noting that you will have a harder and more expensive experience getting insured. You might want to consider getting some experience with general trucking first and then revisit starting your own company. If you don’t mind the higher fees and are inspired by a challenge, then by all means let’s get you started. Obviously, if you already hold a valid CDL A and you have experience in trucking, you’re ready to move on to the next step.

Step 2: Deciding on the right equipment

Your next step is all about equipment. You’ll need to figure out what type of truck/trailer you want and then price shop. Many people choose their equipment based on the route they plan to run. Want to go long distance? A larger carrier is the better choice whereas if you’re regional, a 3/4 car setup might be more practical. Some people want to start off with a dually and 3/4 car trailer setup and sometimes this works out for them. Financially, it’s a smaller upfront commitment. On the contrary, a 7-10 car setup might be what you’ve got your eyes set on. With a higher price tag comes higher earning possibility. Which one is right for you? Well only you can decide but definitely consider both your route plans and your finances. Either way you do need to decide and then move on to the next step.

Step 3: Getting insurance quotes

Once you’ve made a decision on the type of equipment you want, you’ll need to price shop insurance for said truck/trailer combination. As we talked about in step one, how long you’ve held your CDL alongside driving history, can make all the difference between getting insured and not.

You want to make sure that:

1) You can actually get insurance for the car hauling setup of your dreams. 2) You can afford the payment that comes along with getting insured.

Step 4: Getting your authority and fulfilling other legal requirements

Once you know you can afford/get approved for the truck/trailer setup and you can get approved and afford the insurance payments, you’ll need to get your legal ducks in a row. These include:

1) Incorporating your business 2) Getting your authority (MC + DOT numbers) 3) Getting your IFTA

4) File your UCR registration 5) Designate BOC 3 Process agents 6) Fulfill any other local/state requirements.

Aside from that you’ll also need a business account and legal documents for your business like your inspection sheet aka Bill of Lading . The terms and conditions found on this document and how you inspect the vehicle can make or break your new business so do not skimp here.

Step 5: Purchasing your equipment

Now that you’ve officially started the process, you have to do the biggest and scariest thing: make the big purchase. Within 30 days of filing your application for your operating authority, you’ll need to buy the truck and insure it. If you don’t and the DOT decides to audit you, you’ll be shut down. Let’s not let that happen, so here’s when you finally take the leap. Smile, you’re about to become a car hauler!

Step 6: Setting up a website

You need to have a website and a professional email address. Yes, you’ve read that right! I get it, you like your [email protected] email address but customers don’t. Even though you’re a trucker, you can still have some swag and that is achieved through an awesome email address. Plus it makes you trustworthy. You need something like [email protected] or whatever your company’s name is. There’s no excuse, fancy email addresses like that are free when you buy your domain. As far as a website is concerned, it’s very important that you start trying to generate your own leads from the get go. I’m sure by now you’ve heard the saying, “brokers make us broke.” Well if you depend on brokers and you take whatever they give you without a fight so to speak, you will be broke and out of business. I’m sure you don’t want to rely on brokers forever… so yeah, about that website and fancy email address?

Step 7: Signing up for the load board

Once the FMCSA (Federal Motor Carrier Safety Administration) has approved your authority, you can get ready to jump for joy because it’s getting down to the wire. Your next step is to head to CentralDispatch.com and sign up for access. There is a monthly fee commitment, but we are going to say it’s the cost of doing business. Or in your case the only way to be in business. Central dispatch is a load board used by brokers, carriers and dealers. You will need to use it to find and book your loads. So get on there and start looking for loads. As a small wildcard, I want to mention software. I know it’s not something most drivers talk about but let me tell you, you won’t regret the small invest. I highly recommend that you invest in a carrier software to make managing your business easier especially with things like tracking your fuel and planning your route. I recommend carshipio.com. Totally worth the monthly investment.

Step 8: Start making your money

The final step is a no brainer. Once you’ve started finding your loads and getting a feel for the load board, it’s time to start making your money. In the beginning it’s going to go one of two ways:

1) You’re going to get a huge amount of money and be tempted to spend it all. (Which i advise against that) 2) You’re going to look at your first run like, what the heck did I get myself into?

Whichever way it goes, just remember that nothing great happens overnight. Keep at it. Run legal and put your all into it! I can’t promise that it’ll get easier with time, but I can promise that you’ll never get bored.

—–

So there you have it. Follow these 8 simple steps if you want to start a car hauling business. It’s not rocket science really, but it’s critical in my opinion, that you do them in the right order and within the right time frames. The last thing you want is to make a mistake that can cost you money or worst, your car hauling business before you even start.

The only thing standing in your way of your dreams is the decision to start and I think you’ve taken that step already. But if you haven’t, make that decision, follow these steps and you will be on your way to success. If you want a more detailed step by step process for starting, running and growing your business, check out the car hauling business course here .

I hope this was helpful.

ADDED 12/2017: According to the fmcsa, as of Dec 2017, all commercial vehicles (2000 and newer) are required to have an ELD system installed. An ELD is electronic logging device. According to my contact at the FMCSA, even if you have a dually setup, you have to have an ELD installed. Congress thinks it’ll make the road and drivers safer.

49 Responses

Great post on starting car hauling business do you have a post on starting an Auto transport broker business?

Yes, you can check out this post: http://relogeek.com/become-an-auto-transport-broker

Also if you join the mailing list, there’s tons of free info.

Lastly, if you want step by step instructions join ReloAcademy over at ReloAcademy.com

My name is jeff self i am wanting to start a car hauling business and i dont know where to start.i need someone to help me that knows what there doing please help me.

I have replied to your email Jeff. 🙂

Ashley, do you mind providing me with some help as well?

Hey Braylon, thanks for reaching out. I would love to help. Use this form to contact me .

Hey, thanks for posting, you have provided a really good information which is very useful and helpful for people wanting to start a business in car hauling or something related to it. I think whether it is a car hauling business or an auto transport both requires a lot of research and plannings and many things one should consider when planning to start such type of business. Me and my brother is thinking to start a business in car hauling or similar services, at present we are at the initial stage of planning and out lining things which can do and vice versa. Many of my brother’s friend works in auto shipping New Jersey company which also helps us to understand the different terms and condition professionally. Also, we are going through many articles like how to, pros and cons, etc. But your post is actually a real help. Thanks again.

Happy it’s helpful

Great guide, Thank you.

I am humbled by your words! Thank you for being here Tonia!

Hi Ashley, I finally got a reasonable quote back from my insurance broker. $15,400, As you progressive have made it very hard for new ventures to get started as of Oct 2016. Anyway im undecided on a 3/4 hauler verses an Ez4. Do you have any insight on the either advantage. I will be purchasing one or the other soon as i get off my ship March 1st. Also Thanks for your very informative forum✊

Thanks for updating me. I like the 4 car trailer better than the 3/4. I had the 3/4 and one of my friends had the 4car EZ Loader and he was almost always able to haul 4 cars whereas for me, I only could haul 3. Thanks for being here and I am happy you find my information useful! Stay awesome!

What are your suggestions when raising money to purchase equipment and insurance to start car hauling?

Simply put? I recommend you save as much as you can to help relieve some of the financial burden of starting out. Obviously this plan is different for everyone. Depending on things like your experience which can lower insurance costs or maybe you’re teaming with your partner/wife. Or maybe you have someone else handling the household bills. These wild cards can change the game financially for you.

The biggest lesson here, is to figure out how much you need, how much you need to make and set goals. Goals for achieving success and goals for saving the money you need to make it happen. If you haven’t already check out my video I did called “ How I saved $100k “.

Great info. My question what is some good equipment eg,Truck,Trailer,Etc? How much does cost to get started? Where could the equipment be purchased from? Thanks

Thanks for writing in.

Good equipment is subjective. It really depends on your needs and tastes.

Are you getting a tractor trailer or are you getting a dually and 4 car trailer?

That is a question only you can answer.

Again not the sexy answer but how much you pay depends on too many variables. How much downpayment you have, your credit, your insurance, your driving record, your experience, your location… again too many variables to give you a definitive answer.

As far as purchasing equipment… you can buy them from individual sellers i.e.: old truck drivers who are selling equipment, used dealerships that offer trucks at a discounted rate usually with high miles or brand new from a dealership of your choice i.e. Volvo, freightliner, kenworth, peterbilt, etc or in case of dually you have ford or dodge or chevy. It’s really up to you.

Most people choose based on their experience. If you have experience driving Freightliners you might go that route or in case of dually you might like dodge over ford. Personal preference.

Equipment is not what’s going to dictate success.

Guys can have the best equipment and a crappy strategy and horrible execution. Guess what will happen? They will fail.

Likewise, a guy can have crappy old equipment but has the right strategy and excellent execution and win!

Hope this helps Eric.

I have class A experience bUT I would like get a dually.Does the dually need a fifth wheel to pull a 4 car trailer?

Yes it will. ?

Is possible to lease on to a company starting out. Is instead of the bIg expense of get your own authority?

As far as auto transport…. that is an option but if you already have your truck and trailer why not get your own authority?

Ashley can you email me I have tons of questions

Hey Tracey. Go to this page to contact me .

If you will be hauling throughout the 48 states, what type of business license is needed?

I don’t think you will need a business license but it depends on your county where your official business address is. Even if it’s your home. Call you local town hall and ask them. Most people don’t get business licenses because they don’t know they need them but in some cases you do. So check first. Don’t assume 🙂

Hope this helps Ashtin.

I would like to buy my dually and a 4 car trailer. I would like to do it local in the state of Florida. I have a great credit. Is it a good idea just working local

Hello Lennar,

It depends on what you mean by local. If you mean the state of Florida, then yes, you can stay within the state and still make a decent amount of money depending on your expenses. You have to figure out your break even point and consider to yourself that if you are depending on Brokers and load boards, you will probably only make about $80-125/car depending on origination/destination. If you are getting your own clients then you determine the price and can charge upwards of $2-300 per car. If your expenses fall below your potential income then it’s a go. But everyone’s situation is different. The good thing about Florida is that if you stay in the state only you won’t need ifta last I checked.

Hope this helps.

how is the dispatcher charge per load or per vehicle. If I have a 3/4 car carrier what is the approximately per week thank you

It depends on the dispatcher you choose to work with. Some will charge a percentage while others a flat fee. You gotta find the one you click with. As I’ve mentioned time and time again, I can’t give you how much you can make because there are many factors.. the market day to day, your location, your route. There’s too many variables to give you an accurate number. Some drivers report thousands a week while other can barely break ground. It’s Also about who you know. If you have connections, that can help dramatically.

Need help on starting my car hauling business

What are you have trouble with specifically?

I need a full guid on how to start my own car hauling business I have 28k cash how do l go about it.

Well I don’t have a “FULL” guide because different states have different rules. However I definitely recommend my car hauling business course to show you the basics of starting the business and growing the business. Check it out over at shipmorecars.com

Hello, I am interested in starting a car hauling business, my boyfriend already has a tow truck that he operates only when needed. For the both of us, this would be somewhat added venture to what we do normally. My primary question, is would I be considered a towe company,or hauling companyif I gain a contract to drop and load for auctions, on a daily basis, but also haul at least once a month nationwide. I dont know what regulatory rules I need to abide by hauling pr towing. Or would need to be credentialed to do both. My boyfriend currently has a 4 car hauler, but he also can do towing.

Well if your boyfriend has a four car already that means he’s legal to haul cars. I’m not sure how the tow truck thing work as I have no experience in that. However as I said, if he already has his car hauling equipment and he’s got his authority, he should be fine shipping cars.

If you want to learn how to grow that business, check out my car hauling business course over at shipmorecars.com

This really helped me a lot. Very good post! I do have a couple question id like to ask you. I want to start my business but want to start with something small. Pick up truck 3500 plus a 3 car hauler trailer. Would the steps to start be the same? Same legal documents? Do you make inspections sheets for the cars you haul?

I think if you can swing it i would do a 4 car double deck or a 5 car not a 3. But if 3 is all you can do then you should definitely crunch the numbers to make sure your expenses don’t exceed your income from it. With that said, the paper work will be the same. The difference is in getting insurance and the limits you’ll need. As far as inspection sheets, I don’t make any myself. However you do get the terms and conditions that go on the inspection sheet or if you’re using a carrier app (copy and pasted) included when you purchase my car hauling business course. Visit shipmorecars.com for more information.

Hope this helps!

Can I start a hauling company without my CDL being the fact that I will not be the driver ?

Yes you can start the company without a CDL but you’ll need to have a driver lined up for insurance reasons. You’ll need to have insurance as the DOT can audit you within the first 30 days. Hope this helps.

Hi. I have a cdl with 15 + yrs exp. no car hauling experience. Was wanting to go with a 5500 ram and 4 car trailer. I live in California. Wanting to stay in California but on occasion leave the state. But I was told that with a 4 car setup it’s better to stay local. I would be getting a loan to get finance the business. Just wondering what you think?

I think that you could do well in California with a four car dually set up without leaving the stage. Running from So. Cal to the Bay can be a profitable route. But I agree, you really don’t want to go too far with a 4 car. Sometimes the money you get is better when you stay within your state. Hope this helps!

It’s a 2 car trailer enough to make it profitable or 3 / 4 car it’s more recommended .

I would recommend doing a 4 car double deck or a 5 car. Unless you have personal clients, a two car will be hard to profit from especially when relying on brokers! Hope this helps!

Man, great post. I have a school us cdl is that acceptable?

Hello Lamar!

If your CDL is an A yes it is acceptable. If your CDL is a B, then you want to check with you local DOT to see what you can or cannot haul within your state. Here’s what the FMCSA has to say about it: https://www.fmcsa.dot.gov/registration/commercial-drivers-license/drivers

Thank you for being open about the business of transporting cars. After 1.5 yrs experience and my wife retiring early so that she can see the country with me. I only have a few issues with the business and you touched on all of them. 1. Biggest issue would be the brokers, for example $1000.00 car and the broker gets 20% = $200 just for posting the car and the driver takes all the burden, delivering the car unscathed, on time, fuel cost, hotel cost, food cost, crazy insurance premiums, mortgage payments on the equipment, being away from the family for weeks on end, danger of driving with all the idiots on the road including a small majority of the professional / truck drivers, not to mention the dangers of carrying a couple of thousand dollars on your person, etc. Truth be told 20% is not as bad as others out there. Brokers not telling total truth about cars posted , examples not mentioning that the car is inop, truck or jeep lifted, and just recently had a mustang cobra with over 800 HP and took me 45 min just to get on the lower deck because I couldn’t hit the throttle with out breaking traction and of course it was a manual with a racing clutch, waiting for brokers to get in touch with owner before awarding trip on central dispatch 8 out of 10 don’t have the car and trying to hustle the car from another broker. You said it a Broker will make you broke. Well said. But after some experience one learns how to dodge Brokers who are not on the up and up. May someday soon I will be getting back to you on info how to start a Broker business that is on the up and up at 10% and COD always. Now they get a % if you want to get paid before 30 days. Again thanks for your service as it is informing info ref. The car hauling business.

Yes, there are some shady brokers. Key is getting your own website up and attracting your own clients.

Hello, I’m not sure if this website is up and but i just came across it and there a lot of get information and had a few more questions? I was wonder if we can email each other. thanks

Hello Esmeralda. Yes the site is up and you can email me here: relogeek.com/contact

Share Your Thoughts Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed .

You're About To Learn Secrets That Most Brokers Will Never Know.

I put together this HOT NEW series that I think you’ll love. Everyday for the next 7 days, you’ll receive one new lesson showing you top secret strategies for getting paid top dollar shipping cars (and have fun doing it) .

If you’d like FREE ACCESS to this series, sign up below while it’s still free .

Credit cards
View all credit cards
Banking guide
Loans guide
Insurance guide
Personal finance
View all personal finance
Small business
Small business guide
View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a Transportation Business: The Ultimate Guide

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

The transportation business touches far more of our lives than we notice. When you think of transportation businesses, you might think specifically about taxi companies or car rentals, but there are so many other options that you might not be considering. Any time you’ve rented a car, bike, or limousine you’ve interacted with a transportation business. There are also other businesses like shipping, transportation services for seniors, taxi services, and more.

If you’re wondering how to start a transportation business, first consider all of the possibilities. Our guide to starting a transportation business can help you define what a transportation business is and will go over everything you need to start a transportation business of your own. It takes a lot of planning, but you can successfully start a business if you’re ready to dedicate time to it.

How to start a transportation business in 8 steps

A transportation business is basically any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their product to their actual business.

These possibilities lead right into step one of how to start a transportation business: choosing the type of transportation business you want to start.

1. Choose the type of transportation business to start

As we mentioned above there are so many kinds of transportation businesses out there for you to choose from to start. You might consider what vehicles you already have at your disposal or what the market you plan to operate in is currently lacking.

Your options for transportation businesses to start include, but are not limited to:

Taxi company.

Senior transportation.

Limousine rentals.

Car rentals.

Bike rentals.

Moving van rental or moving company.

Medical transportation.

These are the basic types, but there are also emerging markets for things like scooter rentals, along with more traditional ones like school bus companies. You might already have an idea of which type of transportation business you want to start.

If not, though, a key part in your journey to starting a transportation business will be doing some research into which transportation type is most in-demand in your area. You can do this research by conducting a market survey, examining possible competition, or checking in with locals in the area you want to start your transportation business in. This will come in handy when it’s time to write up a business plan for your company.

2. Choose a name and entity for your transportation business

The entity you choose might influence your business name, so you might want to choose the entity first. For a transportation business, some entities might make more sense than others. A limited liability company or a limited liability partnership might be good due to the fact that it would shield the partners from personal liability.

Your options for business entities include:

Sole proprietorship : This is an unincorporated business that is owned by one person or owned by a married couple. This is the most common type of business entity in the United States, but it does leave you open to personal liability when it comes to debts and lawsuits, so it might not be best for a transportation business. If you choose to open your transportation business as a sole proprietorship, then the business will have your name as the business name, unless you file a DBA, or "doing business as."

Limited liability partnership: This partnership is an entity that protects the partners involved from personal liability and the debts and obligations of the business. They’re also shielded from the actions of other partners in the business. Limited liability partnerships differ from a general partnership where the partners manage the business equally and take on those liabilities and obligations equally as well.

Limited liability company: On the other hand, an LLC is a business entity that means owners aren’t personally liable for the business’s debts or obligations. They are a bit more flexible than the LLP option and the LLC can choose to be taxed as a corporation or not.

Once you choose your business entity, you also need to choose a business name when starting a transportation business. If you decide to start your business as a sole proprietorship you may need to get a DBA. This is a name your business uses when it operates under a name other than your own, or the name that the business is legally registered as.

In most states, you can look up businesses that are already in existence there, and see if the name you want for your business is available for you to use. Usually, the Secretary of State’s office will have a registry you can search. You can also check the U.S. Patent and Trademark Office. You’ll want to see if the domain name for your desired business name is also available before finalizing your name.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

3. Write a business plan

This step involves some of the heaviest legwork and the most research, but it’s how you’ll get a very clear vision of your new business. There’s a lot that goes into writing a business plan, but it will be well worth it once you’ve finished. A lot of the puzzle pieces surrounding how to start a transportation business will come together in this stage. The research you do for your business plan will help you prepare your transportation business for success, plus you can use it later on when you approach banks or investors about possible loans or investments into the business.

You can either come up with your business plan on your own or you can use a business plan template. No matter what you use to make your business plan, make sure it includes:

An overview of the business.

Market analysis.

Pricing plan.

Marketing plan.

Financial plan and projections.

Remember what we said about research? If you’re starting a transportation business, you need to make sure that there’s actually a demand for it before you start operations. If there’s no demand your business will not make it very long.

This research into demand is part of strong market analysis, along with research into what other businesses in the area are doing similar work and providing similar services. Through market analysis, you can identify pain points with competitors or gaps in the market, jumpstarting your success.

4. Register your transportation business and get an EIN

Now that you have the name chosen for your business, you have to register the business with that name so that it’s reserved. This is also when you’ll trademark the name if you need to, which can be done with the United States Patent and Trademark Office.

To register your transportation business, you’ll likely have to visit the website for the Secretary of State’s office in the state you plan to operate your business from. That site should lead you to the business bureau or the business agency in your state, where you’ll find information on the specific paperwork you’ll need to submit to them. While some states allow businesses to register online, not all do, so be sure to check whether your state requires you file paper documents with them.

Some of the documents you’re required to file may vary depending on the business entity you chose. Typically, you’ll need to submit a form for your business entity, pay a fee, and — in some cases — publish a notice in the local paper. You may also have to file paperwork with the town or county you wish to operate out of as well.

You’ll use your newly registered business name to apply for an employer identification number or EIN. This is one of the easier processes you’ll have to go through when starting a transportation business. There are many benefits to getting an EIN, like making it easier to file taxes, identity theft prevention and it can help you establish your business credit.

Applying online for an EIN is quick and simple. Usually, within a few minutes, you can get your EIN right from the IRS free of charge and then use that EIN to register to pay your federal and state taxes.

Start Your Dream Business

5. Get licenses and permits

When starting a transportation business, there are bound to be more business licenses and permits required than if you were opening something like a boutique or a coffee shop. When you open a transportation business you’re taking on responsibility for people or for the items you're transporting and the regulations around that can be more in-depth than they are for other things.

The SBA has a list of the issuing agencies for certain businesses that transport things via plane, ocean and more. For state licenses and permits, you have to check with your specific state and municipality. The registration requirements are highly dependent on the county your business will be operating in and its activities, according to the SBA.

For example, if you’ll be driving tractor trailers or other large vehicles, you’ll need a commercial driver’s license, as will any drivers you employee who will drive such vehicles, along with a commercial vehicle registration. These must be obtained through your home state. But there might be unforeseen registrations. The Department of Revenue in Kansas, for instance, has their own resource page for trucking companies , where they discuss requirements like a liquid-fuel carrier’s license, the International Fuel Tax Agreement and trip permits.

You might want to consult a lawyer in your specific industry to make sure you’re following all rules and regulations, that you’re completing the proper registrations, and that you’re getting the right licenses. They vary by state and by specific industry, so you want to be sure you’ve covered all your bases.

6. Open a business checking account and get a business credit card

A business checking account and a business credit card are the next step when it comes to how to start a transportation business. You want to have both of these things to help keep your business’s cash and credit completely separate from your personal finances.

Getting a business credit card can also act as a form of funding early on if you’re having a hard time getting a loan. Paying off your credit card on time — or early if you’re able to — can help boost your business credit and make you a better candidate for a loan when the time comes. Sometimes they even come with perks that can help your business. For example, there are some business credit cards, known as fuel cards, that are especially useful for truckers.

Having a business checking account as well can help you keep your finances separate and help you establish your credit further. Keeping your business money in and out of one account, that isn’t linked with your personal account, can be very helpful when it comes to things like filing taxes, applying for loans, or figuring out your monthly overhead, costs, and revenue.

The best checking account for your business will vary depending on your specific business needs and the type of transportation business you’re starting. For example, the best banks for truckers, who need a lot of flexibility, won’t necessarily be the best bank for a school bus operation that stays relatively local.

Some accounts, like the Chase business checking accounts, offer you a bonus when you sign up, and the ability to waive the monthly service fee. Other banks offer a high number of transactions per month if your business has a high volume of transactions or offer integrations with accounting software. Choosing the right one comes down to what your business needs and what type and how many transactions you’re processing.

7. Get any funding you need

Starting a transportation business isn’t a cheap venture. You’ll likely need to be investing in equipment, aka vehicles, for the business which can cost a lot up front, even if you decide to rent. These costs are inevitable and you’ll have to spend some money to start making money.

So you’ll probably be needing some financing as well. There are plenty of financing options luckily. As a small business that’s new, you might have a hard time finding lenders but that doesn’t mean you shouldn’t try.

There are grants, loans, funding and more available as startup funding to new business owners. You might even decide that your new business credit card can help you get started depending on your credit limit. Your other options for startup business loans include SBA microloans, small-business grants , family and friends, personal loans and crowdfunding.

8. Hire any employees you need

You’re probably going to need employees if you’re planning on transporting anything on any sort of scale other than small one-time trips that you can handle yourself. If so, you’ll have to find those employees and make sure they’re the right fit for your new business.

Some signs that it’s the right time to hire your first employee include having to turn down work because you can’t do it all on your own, never being able to take a break, and needing someone with skills that you don’t already have.

Once you know you definitely need to hire an employee, make sure you’ve got an EIN and your taxes are in order. Then you can move on to the part of hiring your first employee that involves writing the job description and interviewing and hiring candidates.

You should make sure your candidates have the training and the licenses they need to work for your business. You might also want to check their references to make sure they’re reliable and good employees and will be a valuable addition to your new business.

Don’t rush into hiring. If you don’t need any employees, don’t hire just because you think your business should be more than one person. You’ll be able to tell when the time is right and should take some time to vet candidates and make sure they have the correct skills before offering them a position.

Keep in mind that when you hire someone, you’ll also have to provide benefits, deal with payroll taxes, adjust your budget to reflect salaries and more.

On a similar note...

One blue credit card on a flat surface with coins on both sides.

Starting a Car Hauling Business – Profitable Business Plan (Dually Truck)

Car hauling is transportation of cars on a trailer or a dually truck from one place to another. The purpose of car hauling can be many and for different reasons. In earlier times, the industry was majorly unrecognised and unorganised but in the last few decades it has become a robust and competitive industry for many reasons.

You can start your own car hauling business with the help of tips given in this article. This article will help you in creating a business plan for multiple car hauling or just 1 car hauling business.

There are various purposes for which a car is hauled. They are:

Transporting new car from manufacturing site to showrooms.
Shipping a car to a far location where the customer resides.
A car user shifting from one place to another which is usually far and difficult to drive all along
Shipment of used cars for commercial purposes, etc.

There can be many more reasons for car hauling but major sources of business in this industry come from the above four reasons.

Car hauling market has also seen a lot of growth in the past few decades. The global market for was recorded at $12 billion in 2019. With a growth rate of 1.2% from 2014-19, the industry employs close to 57000 people in different roles.

Before you get into this business it is important for you to know whether you are made for this business or not. It is important to know the challenges around and whether it is worth your time.

This article will provide you the basics of car hauling and how you can start your own business. This will help you in getting insights of the industry and its working.

Car Hauling Business Requirements

There are certain things that are must in order to start your car hauling business. Here’s the list of requirements.

Truck along with trailer or a dually truck
Driver and supporting staff
Authority or Permit for the business
Registering your business
Getting authority through FMCSA
Obtaining your insurance
Various permits like IFTA, UCR, ORP
Getting your Commercial Driver License and other permits
Medical Report and Drug Test

Other Necessary Requirements

These essential requirements are not something that is stated formally but is essential when you are starting a hauling business. These are:

Necessary experience in car hauling industry or trucking industry
Mentorship and assistance from someone already in the business
Networking and contacts important to get new work

Some other Important Aspects

Capital Cost and Expenditure
Growth and Profit

Now, as we have mentioned all the necessary requirements for car hauling business. Let us discuss them one by one.

Truck along with Trailer or a Dually Truck

Car hauling requires a spacious trailer that can carry at least 7 cars. A dually truck can do the job for you. You need a truck that has the capacity to easily pull 7 cars both big and small in size. The engine therefore should be powerful. Dually truck comes with 2 extra wheels on the rear side that help in more traction control of the vehicle.

The length of the trailer should also be long and should be equipped with utilities necessary to hold and accommodate cars easily. Loading and unloading of the cars should be smooth to ensure they don’t get damaged in the process.

Generally, trailers are made so that you don’t require any external machine to load the cars on the trailer. There’s a ramp that comes down, allows the car to be driven on the ramp, then the car is locked using bolts and chains on the ramp and the ramp using hydraulics contracts and fits into the designated place in the trailer.

Whether you are purchasing a new truck-trailer or leasing it, ensure that it is strong and durable to withhold a high amount of load and flexible to sustain for a long period.

Driver and Supporting Staff

Driving such a long trailer would be difficult for any driver and therefore a trained and skilled driver is needed who can easily maneuver through the roads without getting many jerks that can have the potential of damaging the loaded cars.

Motor vehicle laws in the United States are different for different states but the general pattern is that you need a special license for driving heavy vehicles like truck trailers. Ensure that your driver has those licenses and also doesn’t have bad credit against his license. Commercial driver’s license is required to operate this business.

Other proper documents might also be required like fitness test report, anti-drug test report, etc.

Support staff is the one who will be assisting the driver through the whole journey. He will also be supervising the loading and unloading process, will help the driver in driving with proper instructions and sometimes will also be driving when the driver will be taking a break.

Your staff should be equally skilled and experienced in this field.

Authority or Permit for the Business

You will get your authority through Federal Motor Carrier Safety Administration or FMCSA by filling up the requisite form costing $300. The process is lengthy sometimes and requires various sorts of documentation.

The Unified Registration System is generally used to get your authority through FMCSA. Obtain all the requisite documents and for this your local attorney will be of help since each state has different criteria.

Authorities are of different kinds which can be interstate, intrastate or sometimes inter country as well. Based on your requirements you are free to obtain by submitting all the needed docs along with fees.

The administration will scrutinize them all and then will grant you the authority.

Other Permits like UCR, IFTA and IRP

Many times you will need extra permits like the above mentioned ones for various purposes especially when traveling longer distances. They are explained below.

UCR : Unified Carrier Registration system is a fund paid to the enforcement of laws related to motor safety. They are paid annually and are generally based on the size of your fleet.

IFTA : International Fuel Tax Agreement is for those who travel interstate and are required to pay the requisite tax amount quarterly through their home state.

IRP : International Registration Plan is an agreement between different states, the capital Washington DC and Canada aimed to ensure smooth travel. The tax is paid usually on the miles covered.

Heavy Vehicle Use Tax: When the cumulative weight of your vehicle crosses 55, 000 pounds or more then you are required to file this tax using form 2290. Some states also charge taxes based on additional weight when the vehicle travels through their states.

Registering your Hauling Company

If you are the sole proprietor then go for sole proprietorship or if you are in partnership then LLP would be fine. Get it registered by furnishing the required documents. Obtain your Tax identification number.

Obtaining Insurance

One of the most important aspects of your business is obtaining your insurance for the business. It is necessary because it helps you to overcome certain burdens in case of some mishap. It is obvious that no matter how good you render your services, chances are that you may suffer a certain loss.

Your client may demand money for certain damages which may not necessarily be to the car but it may be due to inordinate delay in transportation, etc. An insurance policy covering your cargo, your truck and driver is essential for safe work.

It is also necessary in order to start your business and those who will be associating with you as a broker will also look into your insurance cover. Insurance policies are generally costly and therefore you need to do proper research in choosing the right policy for you.

Necessary Experience in Car Overhauling Industry:

No matter whatever you read from wherever, the essential element in this industry is experience. Experience helps you in mitigating all challenges.

Work for the industry with someone for sometime to gain experience on how things work. It will help you in understanding the process, the cost factor, the expense, profit aspect and much more.

You will also know the difficulty and challenges in this field closely. All this will help you in starting your own business.

Networking in the Industry:

It is the networking that will give you new work in the business. Networking will be built when you are into the business for sometime. Connect with people who matter. Learn from them and build a relationship where both of you gain something.

The Mentorship:

Managing everything all alone won’t be very easy for you. You need a mentor who will guide you in mitigating through challenges. Make good friendships with someone who is trustworthy and helpful in the industry.

Mentorship will help you in taking the right steps and avoiding mistakes. Especially when you won’t be getting new work, such mentorship will not only help you in getting new work but will also help you in calming down.

Other Aspects of Business

Capital Cost and Expenditure:

Your feasibility analysis report and business plan will calculate the probable expense. Cost and expenditure depends on the type and scale of business you are opening. Other factors also influence the expenses.

Truck and trailer will majorly cost you along with the cost of staff management. License permit and other legal formalities would be another source of expenditure. Be vigilant in expenditure and don’t spend where it is not needed.

Growth and Profit:

This industry takes time to grow and it is also applicable for you. Firstly you need to grow fully using one truck and trailer and when you feel that you are getting enough work on a regular basis then you can go for buying more trucks and hiring more drivers to drive for you.

Growth factor depends on the service you render. Advertisement is another aspect but it doesn’t work beyond a point. Goodwill and your service is the one that matters in the long run. Never compromise on these two and within few years you will be a successful business on your own.

1 Car Hauling Business

All the above mentioned documents and licenses are required for 1 car hauling. You need to follow the business plan accordingly. Follow the required formalities given in this article and start with 1 car hauling at the beginning. Later on you can grab other multiple car hauling opportunities. You can use your dually truck for one car hauling.

Marketing of 1 Car Hauling Service

As you are hauling only one car, you target audience is going to be very big as compared to multiple car hauling which has limited customers. Person who are moving from one state to other will require your service to for his/her car to be transported to his destination. Many people do not want to drive their own vehicle while migrating to other cities.

You can target those customers with the help of Instagram and FB demographics ads. Your service offering will be visible to your targeted audience in a matter of second.

The first step is to research the industry and develop a business plan. You will need to explore the equipment needed and the necessary permits in your area to haul cars. Once you have a plan in place, you can start researching and purchasing the necessary equipment.

The start-up cost for a car hauling business will depend on the type of equipment and vehicle being used. Generally, the cost will include the purchase of a specialized hauling trailer and other necessary supplies, such as tarps.

Yes, a car hauling business can be a profitable business venture, as long as it’s managed properly and pricing is competitive. It’s important to develop a sound business plan and to have a comprehensive understanding of the market.

You will need to decide if you will haul only passenger vehicles or if you are also open to hauling heavy-duty vehicles such as boats, motorbikes or RVs. Consider the size and weight of the vehicles you plan to transport, as well as the road conditions you may encounter.

Depending on where you plan to operate, you may need to obtain a special permit or license to legally haul cars. Verify your local and state regulations to ensure all of your business activities are in compliance.

There are a variety of ways to promote your car hauling business. Reach out to auto dealerships and private citizens to introduce yourself and your services. Consider placing ads in local newspapers or crafting a website and blog to showcase your business.

Running a car hauling business will require a good understanding of the industry and its regulations. You will also need strong customer service and interpersonal skills to manage client relationships. Strong organizational skills and attention to detail are essential.

Consider the type of vehicle being transported, distance of delivery, and cost of the hauling equipment when pricing your services. Determine the rates that are competitive in your market and make sure you accommodate any discounts to retain loyal customers.

Yes, it’s essential to obtain insurance that meets the legal requirements and covers the vehicles being transported. Depending on your location, you may also need liability insurance to protect your business and the vehicles you transport.

12 Truck Maintenance Tips For Delivery Businesses

7 Tips to Start a Pet Transportation Business

Here Is How To Start Transportation Business With Just One Van

Key Points To Consider Regarding Your Carrier’s FMCSA Biennial Update

Why Trucking Businesses Should Be Eco-Friendly

Starting a NEMT Company – Profitable Business Plan

Get Started, Call Today

Factoring Guide
Broker Factoring
1-Hour and Night/Weekend Advances
Fuel Card For Trucks | F2 Fuel Card by TAFS
Truck Maintenance/Repair Program
ProDispatch
TMS Partners
Client Portal, Load Boards, Credit Checks
Business Loans
Tradeshow Schedule
TAFS Reviews – Testimonials From Real Clients – TAFS
Ambassador Program
Business Partners

How to Start a Car Hauling Business

Are you wanting to be a business owner and get into the trucking industry and start-up a car hauling business or auto transport? Starting a car hauling business as a truck driver can be a great way to enter the transport industry and become your own boss. However, before you jump on the load board and start booking loads, there are a lot of factors to consider. Items like obtaining operating authority, purchasing the right equipment, and finding clients.

First, it’s important to familiarize yourself with the requirements set by regulatory bodies such as the Federal Motor Carrier Safety Administration (FMCSA) and the Department of Transportation (DOT). You’ll need to apply for operating authority and obtain necessary credentials like the International Registration Plan (IRP) to ensure that your small business is operating legally.

Getting Authority

When it comes to starting a car hauling business, obtaining a business license and operating authority is a critical step in the process. The operating authority, also known as a DOT number, is a unique identifier that is required by the Department of Transportation (DOT) to operate a commercial vehicle legally.

If you have prior experience in the trucking industry as an owner-operator, you may be familiar with the process of obtaining standard “for hire” authority for a commercial vehicle. However, when it comes to starting a car hauling business, there are a few differences in the setup process. For example, you’ll need to select “auto hauler” as your commodity type to ensure that you’re correctly identified in the professional hauling services.

It’s also important to note that obtaining operating authority is not the only requirement for starting a car hauling company. You’ll need to obtain additional credentials like the Unified Carrier Registration (UCR) and International Registration Plan (IRP) credentials, as well as comply with various regulations set by the Federal Motor Carrier Safety Administration (FMCSA).

Navigating the requirements and regulations can be challenging, so it’s important to work with experts in the field who can provide guidance and support. Working with a knowledgeable consultant or mentor who understands the intricacies of the transport industry can help you save time and money in the long run and ensure that your car shipping is set up for success.

You’ll Need the Right Equipment

When it comes to starting a car transport company, having the right equipment is crucial for success. Unlike other divisions within the trucking industry, a CDL (commercial driver’s license) and auto hauler trailer will not suffice if you want to be a serious car hauler. Instead, you’ll need to invest in a specialized heavy-duty car trailer upfront that’s designed to hold the number of vehicles you need to haul in a typical load.

In addition to the car carrier trailer, you’ll also need reliable pickup trucks (dually) or full-size semi-trucks that have the appropriate towing specifications to haul the trailer and load efficiently on an ongoing basis. It’s crucial to work with reputable dealerships that specialize in heavy-duty equipment to ensure that you get the right trucks and trailers for your business needs.

One option to consider is leasing trucks, which can help you save money upfront and allow you to upgrade your equipment as your business grows. Leasing can also be a great option if you’re starting a new business and want to conserve your capital for other expenses like insurance policy and marketing on and off of social media.

It’s important not to cut corners when it comes to your equipment. If you do not plan appropriately or try to save money by investing in subpar equipment, you will end up putting too much strain on your trucks, which can lead to breakdowns and costly repairs. This can impact your bottom line and delay your ability to provide reliable service to your clients.

Getting Insurance Quotes

When it comes to starting an auto transport business, obtaining the right insurance coverage is a crucial component to consider. Unlike getting a policy from insurance companies for your own car, auto transport insurance is different and requires specialized coverage to protect your business and the vehicles you’re transporting.

Insurance is a major factor to consider in this business, as used and new cars – especially new ones – are considered high-value loads that require appropriate coverage in the event of an accident or damage. Auto hauling typically needs about double the amount of liability insurance and cargo insurance coverage than other trucking companies. It’s crucial to work with insurance providers who understand the unique risks associated with the auto transport industry and can provide you with the right level of coverage to protect your own business.

When obtaining insurance quotes, it’s important to consider the type of cargo you’ll be transporting, the number of vehicles you plan to haul, and the range of your long-distance hauls. Insurance premiums can vary depending on these factors and others, so it’s essential to shop around and compare rates from multiple providers to find the best coverage for your business needs.

Tips For Writing a Business Plan

AWhen it comes to starting a car hauling business, writing a business plan is a crucial step in the process. A business plan is a roadmap that outlines your goals, strategies, and financial projections for your company.

To create an effective business plan, it’s important to research the industry and gain a clear understanding of what you can expect from your business. This includes analyzing market trends, identifying potential clients, and understanding the competition.

Once you have a solid understanding of the industry, you can set goals for your new company and outline strategies to achieve them. This might include developing a marketing plan to attract new clients, establishing relationships with car dealerships and auction houses, or investing in equipment and infrastructure to improve efficiency.

In addition to setting goals and strategies, your business plan should include financial projections and a budget. This will help you determine the startup costs for your business and estimate your potential revenue and expenses. It’s crucial to be realistic in your projections and budgeting to ensure that you have a clear understanding of your financial situation.

Writing a business plan can be a daunting task, but there are resources available to help you. You can consult with a business advisor, mentor, or accountant to get guidance and support. Additionally, there are many online resources and templates available that can help simplify the process.

Also see: Starting a Trucking Company

Our trucking experts know a thing or two about this. Talk to one today. 913-393-6110

Share This Story, Choose Your Platform!

About the author: tafs factoring.

Track My Order ❯
What We Take
In-Home Pickup
Curbside Pickup
Property Cleanout
Business Disposal
Donation Pickup
Item Assembly
Moving Labor
Find My City
BOOK ONLINE →
Pricing Guide
Click to Call
Customer Reviews
Become a Partner ❯
Become a Loader ❯
Trash Talk Blog
Help Center
Become a Loader
The Industry
Our Technology
Marketing Efforts
Call Center Support
Loader Testimonials
Candidate Types
Vehicle Branding
Available Markets
Our Services
Requirements
Guide to Pay
FAQ’s
U.S. Markets
Subscriptions
Get Started
Loader Login

LoadUp Junk Removal

Nationwide Junk Removal Company

Limited Time Offer ~ Redeem by 12.31.23

How to Start a Hauling Business

Blog Home ❯ Loader Resources ❯ How to Start a Hauling Business

If you already own a truck, starting a hauling business is possible to do with almost no money upfront. If you’re willing to put yourself and your vehicle through some heavy lifting, making a profit by starting a hauling business is also easier than you’d think!

Local hauling businesses are in high demand and with the right tools, your hauling business can get instant access to paid jobs instead of having to hunt them down.

If you’re ready to choose your own hours and paycheck, keep reading our guide on how to start your hauling business and for effective ways you can drive demand in your area.

Your Complete Starting a Hauling Business Plan:

**Click to auto scroll by section

Invest in the Right Truck or Van

Get the right equipment, evaluate your growth strategy, register your hauling business, consider being an independent contractor, research state licensing requirements, purchase liability and commercial insurance, market your hauling services.

Start Your Hauling Business as a PRO Loader
Frequently Asked Questions

The most important piece to your hauling business is the truck. You can start pocketing money faster by leasing a used truck instead of purchasing a brand new one.

If you already own one, is it capable of carrying 2,000 pounds? While you can use half-ton vehicles to transport large items like furniture, you cannot safely haul more than a few items.

One-ton vehicles like box trucks can easily make you more money since they’re capable of hauling much more, and therefore will be a greater return on investment .

Also, take into consideration the cost of insurance, reliability, power, and fuel efficiency. Hauling businesses require a lot of time on the road so a well-rounded and fuel-efficient vehicle will help lower your costs.

While one-ton pickup trucks are beefed up and can pull a massive amount of weight, they have terrible fuel economy and are expensive so they’re not the best choice for a long-lasting hauling business.

Cargo vans are a good choice as they can haul up to 3,500 pounds and have around 404 cubic feet. Minidump trucks are the easiest to unload once you are finished for the day. These are best for large cleanout projects including residential and commercial jobs.

However, if you want to regularly take on large local hauling, delivery, or moving jobs , your best investment is a box truck. See below for box truck sizes and their hauling capacity :

12-foot truck : Haul up to 3,100 pounds and 450 cubic feet.
16-foot truck : Haul up to 4,300 pounds and 800 cubic feet.
22-foot truck : Haul up to 10,000 pounds and 1,200 cubic feet.
26-foot truck : Haul up to 10,000 pounds and 1,700 cubic feet.

Does your truck fit our vehicle requirements? FIND OUT ❯

While your truck is your main piece of equipment, in order to get jobs done efficiently and without hurting yourself, you should also purchase things like dollies and bungee cords.

This equipment will help you prevent damage to the items you are hauling and therefore many future headaches and legal disputes.

If you’re hauling things like refrigerators, washing machines, and other appliances, you will want to purchase an appliance dolly. You’ll also need basic tools for disassembly jobs if you’re helping remove bulky furniture items that may not fit through doors.

Other types of hauling equipment you may want to get are the following:

Bungee cords
Ratchet straps
Moving blankets

Thinking about growing in your city and getting not just one truck but two? It’s good to consider this early in the game since, for every new truck you invest in, you open up an additional revenue stream for your hauling business.

🏦 You can apply for small business loans or grants to help you purchase trucks, tools, hauling equipment, and cover other costs of starting the business such as getting the business license.

Keep in mind however that the more your truck(s) costs, the more hours you’re going to need to put in just to stay on top of payments before making any profit. Make sure you’re servicing an area where there’s enough demand to supply your investments.

If you don’t want to purchase a new truck right now but need more cubic feet, you can also make a smaller investment and attach a trailer to your current vehicle.

Check out the following trailers that you can use to expand your cubic feet :

Dump Trailer
Utility Trailer
Enclosed Trailer

If you are starting a company where you have your own branding, website, social media, marketing team, etc. then you will want to register your hauling business at this point.

A business license, put simply, is essentially a tax receipt given by your city. If you’re going in with partners, look into registering as an LLC. Laws vary by state, so check out local resources such as the chamber of commerce, city clerk, zoning and planning department, or other local offices to assist with registering your hauling business.

💼 The nationwide average to purchase a junk removal business license is between $50 – $400 .

As an independent contractor you are considered self-employed and will then be paying self-employment taxes. You can still be hired by another company or person to do a job, but how you go about completing it is determined by you .

Starting a business as an independent hauler gives you earlier and easier access to jobs in your area because you can offer your services through gigs listed on websites like Craigslist or make more money by signing up to be a Loader for free access to junk hauling jobs in your area with logistics companies like LoadUp.

In some cities, independent contractors can operate their business by paying a low fee to the city they’re servicing. However, other cities may not require a business license and instead ask you to obtain a permit to conduct business.

Unlike W2 employees, you don’t have an employer withholding taxes from your paycheck and you will instead need to pay the IRS money at the end of the year.

cobb county waste management transfer station

If you plan on operating locally within the same state, look into your local requirements for operating an intrastate commercial vehicle and for your type of hauling service.

Depending on what you plan on hauling, the size of your vehicle, and your state regulations, you may need to obtain a commercial drivers’ license.

Also familiarize yourself with your state requirements for the items you plan on handling. If you plan on working in the junk removal industry and maybe hauling hazardous waste, you need to be aware of proper disposal processes in your county.

🤔 Wondering how to start a junk removal business specifically? Check out our detailed guide !

Next, you’re going to need to get commercial insurance to protect your vehicle, along with liability insurance to protect your business. Investing in insurance policies for your hauling business gives you peace of mind and opens more doors as it builds trust with customers.

Independent contractors working with apps like the LoadUp Driver app are often given the option to be assisted with liability insurance for jobs referred through that platform.

🏷️ The average cost for $1 million general liability coverage is between $450 – $1000 per year.

If you’re planning to work completely independently then you should get in touch with a commercial insurance broker to choose the best insurance option for starting your own independent hauling business.

Now that you’re all set to provide hauling services, you need to build your customer base!

With long-established, competing hauling services like 1-800-GOT-JUNK, College Hunks, and, yes, even LoadUp, you’ll want to make really smart business decisions at the beginning .

You can start the affordable route and just spread the word with friends, family, and referrals but eventually you’ll want to invest some money in marketing and advertising.

However, the most cost-effective to get your hauling company’s profits growing from the get-go is by joining a gig-referral app like the LoadUp Driver app as an independent hauler .

While most hauling gigs are lead-based, meaning you still need to seal the deal before making money from your time and effort, the Loader app only provides paid-for jobs .

Don’t Waste Time On Hauling Leads

The way it works is when a customer books with us, we give you 60% of the profits for every job your hauling business completes. When jobs are booked online or over the phone, they go into the app with the payout listed, and you can accept as many jobs as you want and even assign them to team members.

As a Loader, you are still your own independent business but are simply completing jobs in your area that were booked through our system and are up for grabs on our Driver app. We’ll never tell you how to do your job, where or when you work, or how many jobs to take.

🤑 Wondering how much money you can make as a Loader? Find your potential earnings here!

Being a Loader is a no-contract, no-money-down opportunity for you to accept more, higher-paying jobs and make a better living with your own hauling business.

If you have just one truck, starting out as a Loader can get you your sailor’s legs.

And, if you’re more interested in being a multi-truck hauling business and have your sights set on being a nationwide hauling service, our Loader App can get you there.

Start Your Hauling Business Using Our Marketing

The Loader Program offers serious haulers help with marketing and job generation without taking a single ounce of ownership of your business.

We simply take care of the marketing for our Loaders so you can focus on completing jobs professionally and steadily grow your hauling business instead of wasting time with dead-end leads, marketing mishaps, upset customers, or late invoices.

Benefits of the Loader Program:

VIP dispatch support
High payouts per job
Increased business opportunities
Boosted advertising in your zip codes

As a Loader you will get access to our jobs, and a guaranteed increase in the earning and growth potential of your hauling business .

We’re confident that once you see the increasing advantages of providing hauling services in your area through our app, you’ll find the drive to expand your own hauling business into a nationwide fleet.

Ready to start your own hauling business? SIGN UP ❯

Frequently asked questions

If you are starting from scratch and need to buy a brand new or used truck to start your hauling business, the start-up costs can be between 25k to 90k . Check out the different costs and the investment risks when it comes to starting a hauling business in junk removal here .

Junk Removal Made Easy

Guaranteed upfront pricing online.
No on-site haggling or surprise fees.
Payments handled securely online.
Million dollar premium insurance.
Eco-friendly removal & disposal.

SCHEDULE A PICKUP

Join us on:

About Alexa

Alexa Amador is a writer, graphic designer, and murder-mystery junkie. She graduated from KSU in metro Atlanta with a bachelor's degree in English and has been working as a Digital Marketing Specialist for LoadUp Technologies since 2019. When she isn't writing helpful articles about ways to declutter our lives and homes, she's likely enjoying a glass of wine, reading, gaming or going for walks with her huskimo.

Sign up to be a Loader today.

Free upfront pricing online →

" * " indicates required fields

Call 844.239.7711
Text 678.884.4738

Find your local city

Search below to find LoadUp near you.

More results...

✔ Get your instant upfront price online

Enter your info below to get started.

By submitting this form you consent to receive marketing/promotional/notification messages from LoadUp, to opt-out reply STOP at any moment. Msg & Data rates may apply. Terms

IMAGES

How to Start a Car Hauling Business in 2023
FREE Truck Business Plan Template
The Best Car Hauling Business Plan
trucking business plan template pdf
How To Start a Car Hauling Business. Learn, Buy Registration, Run
How to Start a Car Hauling Business in 2022

VIDEO

Thinking About The Car Hauling Business 🤔 #trucker #subscribe
Here's How This Modern Car Hauling Business Got Started (MUST WATCH)
How to Start a Hauling Business
Luxury Car Hauling Business: Most Expensive Car #shorts #luxurycars #trucknhustle
Tips for starting a CARGO VAN BUSINESS + My experience after getting out the MILITARY
1st load with my Infinity GNW 500. I’m 560 pounds overweight on my drive!

COMMENTS

Car Hauling Business Plan Template [Updated 2024]
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a car hauling business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of car hauling company that you documented in your company overview.
How to Start a Car Hauling Business in 2024
Operations Plan: An outline of the day-to-day operations of the car hauling business, covering logistics, fleet management, and any partnerships or collaborations. Financial Plan: A detailed financial forecast, including startup costs, revenue projections, and a break-even analysis, providing a clear picture of the business's financial health.
How to Start a Car Hauling Business
As a car hauler, your load is high-value. That means more insurance coverage, especially cargo insurance. It's standard for carriers and owner-operators to have $1 million in liability insurance and up to $250,000 in cargo insurance. An auto hauler will want to double that - $2 million in liability and at least $500,000 in cargo insurance.
How to Start a Car Hauling Business in 14 Steps (In-Depth Guide)
As America continues its long love affair with automobiles, vehicles will need transporting coast-to-coast and door-to-door. 2. Analyze the Competition. Before hitting the road, wise entrepreneurs research their competition. A few key steps can help analyze rival car hauling companies and find strategic advantages.
How To Start A Car Hauling Business: A Comprehensive Guide
Starting a car hauling business can be an exciting and lucrative venture for those who have a passion for transporting vehicles. However, like any business, it requires careful planning and a solid business plan to ensure success. One of the first steps in creating a successful car hauling business plan is to conduct thorough market research ...
How to Start a Car Hauling Business
Create a business plan for your car hauling company. The next step is to create a car hauling business plan. It's an important document you'll need to source for funding from investors, track your business's progress, and make improvements as the case may be. This document will outline your business goals, strategies, and how you plan on ...
How to Start a Car Hauling Business in 10 Steps
Step 2: Create a business plan. Trying to start a new car hauling company without a business plan is setting yourself up for problems. For instance, you need to know what you'll be hauling, where you can find customers, your goals, and how you plan to grow the business. Your car hauling business plan will serve as a guide to help you handle ...
How to Start a Car Hauling Business: Ultimate Guide
Step 3: Get Car Hauling Insurance. Before you can legally establish your business, you'll need insurance. This works to protect both you and your clients from any unintentional harm that may occur during the hauling process. You'll want to be mindful of the amount of insurance coverage that you obtain.
How to Start a Car Transport Business
In the marketing section of your car hauler business plan, identify the most effective ways to spread the word about your services. An effective plan incorporates both offline and online marketing channels. As a result, you may find it easier to boost profits with a steady stream of car-hauling loads. Select the Ideal Motor Carrier Service Niche
How to Start an Auto Transporting Business: 13 Steps
Check with your city to make sure you comply with local zoning laws. 9. Have a lawyer draw up auto transporting agreements, and employee contracts if you are planning to employ staff. 10. Purchase the necessary equipment. For a regular auto transporting business, purchase at least one open car hauler.
Ready, Steady, Start Your Car Hauling Business
Let's break this down: Insurance: Depending on a particular type of coverage — $800-$1,500. CDL: Depending on the state and school — ~$100 fee for test completion and CDL registration. Equipment: Trucks (both new and used) can come in the $15,000 to $180,000 price range, with about a $1,000-10,000 down payment.
How to Start a Car Hauling Business: A Comprehensive Guide
By conducting thorough research, creating a solid business plan, and diligently managing your operations, you can establish a successful and reputable car hauling business. Remember to prioritize customer service, adapt to industry trends, and continuously improve your services to stay ahead of the competition.
How to Write Car Hauling Business Plan? Guide & Template
A car hauling business plan should detail services offered, target clients, startup costs, licensing requirements, projected pricing and profit margins per load, and marketing strategies to reach ...
How to Start a Car Hauling Business in 2023
Step-1: Prepare the business plan-Starting a new car hauling business without a business strategy is a recipe for disaster. For example, you must understand what you will be hauling, where you may find consumers, your goals, and how you want to build the firm. Your car hauling business plan will act as a guide to assist you in dealing with ...
How to Start a Car Hauling Business
Step 1: Research and Planning. Before launching your car hauling business, it's important to conduct thorough research and develop a solid plan. Familiarize yourself with the car hauling industry, market demand, and competition in your area. Determine your target market and identify potential clients.
How To Start A Car Hauling Business: A Comprehensive Guide
A solid business plan is essential for guiding your business decisions and attracting investors or loans. Legal requirements and licensing. Navigating the legal landscape is critical for any entrepreneur aiming to enter the trucking and car hauling industry. The prerequisites for operating legally vary significantly based on geographic location, but common requirements include obtaining a ...
How To Start a Car Hauling Business In 8 Steps
Step 4: Getting your authority and fulfilling other legal requirements. Once you know you can afford/get approved for the truck/trailer setup and you can get approved and afford the insurance payments, you'll need to get your legal ducks in a row. These include: 6) Fulfill any other local/state requirements.
How to Start a Transportation Business
4. Register your transportation business and get an EIN. Now that you have the name chosen for your business, you have to register the business with that name so that it's reserved. This is also ...
Starting a Car Hauling Business
Starting a Car Hauling Business - Profitable Business Plan (Dually Truck) Car hauling is transportation of cars on a trailer or a dually truck from one place to another. The purpose of car hauling can be many and for different reasons. In earlier times, the industry was majorly unrecognised and unorganised but in the last few decades it has ...
Car Hauling Business Plan [Sample Template]
A Sample Car Hauling Business Plan Template. 1. Industry Overview. Car hauling services companies are part of the automobile towing industry and players in this industry generally tow light or heavy vehicles over short and long distances. Car hauling services companies may also provide incidental services such as storage and emergency road ...
How to Start a Car Hauling Business
AWhen it comes to starting a car hauling business, writing a business plan is a crucial step in the process. A business plan is a roadmap that outlines your goals, strategies, and financial projections for your company. To create an effective business plan, it's important to research the industry and gain a clear understanding of what you can ...
Starting a Hauling Business with a Truck
Starting a business as an independent hauler gives you earlier and easier access to jobs in your area because you can offer your services through gigs listed on websites like Craigslist or make more money by signing up to be a Loader for free access to junk hauling jobs in your area with logistics companies like LoadUp.

Car Hauling Business Plan Template

Car Hauling Business Plan

What Is a Car Hauling Business Plan?

Why You Need a Business Plan for Your Car Hauling Business

Sources of Funding for Car Hauling Businesses

Finish Your Business Plan Today!

Executive Summary

Company Overview

Industry Analysis

Customer Analysis

Finish Your Car Hauling Business Plan in 1 Day!

Competitive Analysis

Marketing Plan

Operations Plan

Management Team

Financial Plan

Income Statement

Balance Sheets

Cash Flow Statement

Car Hauling Business Plan Template FAQs

How Do You Start a Car Hauling Business?

OR, Let Us Develop Your Plan For You

Other Helpful Business Plan Articles & Templates

How to Start a Car Hauling Business

Step 1: Decide if the Business Is Right for You

Car hauling industry trends

Trends and challenges

What kind of people work in car hauling?

How much does it cost to start a car hauling business?

How much can you earn from a car hauling business?

What barriers to entry are there?

Related Business Ideas

How to Start a Towing Business

How to Start a Hot Shot Trucking Business

How to Start a Trucking Business

Why? Identify an opportunity

What? Determine your services and type of hauling

How much should you charge for car hauling services?

Who? Identify your target market

Where? Choose your business premises

Step 3: Brainstorm a Car Hauling Business Name

Step 4: Create a Car Hauling Business Plan

Step 5: Register Your Business

Choose where to register your company

Choose your business structure

Form Your LLC

Step 6: Register for Taxes

Step 7: Fund your Business

Step 8: Apply for Car Hauling Business Licenses and Permits

Step 9: Open a Business Bank Account

Step 10: Get Business Insurance

Step 11: Prepare to Launch

Essential software and tools

Develop your website

Focus on USPs

Step 12: Build Your Team

Step 13: Run a Car Hauling Business – Start Making Money!

Leave a Reply Cancel reply

Subscribe to Our Newsletter

10 Best Repair Business Ideas

57 Best Service Business Ideas

26 Profitable Automobile Business Ideas

How to Start a Car Hauling Business in 14 Steps (In-Depth Guide)

1. Conduct Car Hauling Market Research

2. Analyze the Competition

3. Costs to Start a Car Hauling Business

Start-Up Costs

Ongoing Costs

4. Form a Legal Business Entity

Sole Proprietorship

Partnership

Limited Liability Company (LLC)

Corporation

5. Register Your Business For Taxes

6. Setup Your Accounting

Accounting Software

Hire an Accountant

Open a Business Bank Account

Apply for a Business Credit Card

7. Obtain Licenses and Permits