How to Start a Car Hauling Business: Your Guide to Success
Are you thinking about starting a car hauling business? It’s an exciting way to make money in the trucking industry! Let’s talk about how to get started and what you need to know.
What is Car Hauling?
Car hauling, or auto hauling, means transporting vehicles from one place to another. You might move one car at a time or carry several cars for dealerships. Before you start, it’s important to think about what kind of equipment you want to use and how you want to run your business.
How to Start Hauling Cars
- Make a plan: Write down your ideas for your auto hauling business. Think about what kind of cars you want to haul and who your customers might be. We always recommend writing a business plan for your trucking company before you get started.
- Get the right equipment: You’ll need a truck and a trailer designed for hauling cars. Decide if you want to start small with a single-car trailer or go big with a multi-car trailer.
- Get your paperwork in order: You’ll need special licenses and permits to haul cars legally. Make sure you have everything you need before you start.
- Find customers: Look for car dealerships, auto auctions, or individuals who need cars moved. You can also use special websites that list auto hauling jobs
Making Money in Your Car Hauling Business
Car hauling can be a great way to earn money, but it’s important to understand how it works:
- You can make about $300 to $700 per car, depending on the distance and type of car.
- The more cars you can haul at once, the more money you can make per trip.
- Building good relationships with customers can lead to repeat business.
Understanding Cost Per Mile and Profitability
To run a successful auto hauling business, it’s crucial to understand your cost per mile and how much you need to charge to break even or make a profit hauling cars.
Factors That Affect Profitability
- Miles driven: The more miles you drive, the lower your cost per mile becomes due to fixed costs being spread over more miles.
- Fuel efficiency: Improving your truck’s fuel economy can significantly reduce your largest variable cost.
- Deadhead miles: Empty miles are unpaid miles, minimizing them is crucial for maintaining profitability.
- Rate negotiation: Seeking out higher-paying loads can boost your profit margin.
Tips for Success in the Car Hauling Business
- Be reliable: Always show up on time and take good care of the cars you’re hauling.
- Stay safe: Make sure you have the right insurance to protect yourself and the cars you’re transporting.
- Keep learning: The car hauling business can change, so always be ready to learn new things.
- Manage your money wisely: Keep track of your expenses and make sure you’re charging enough to make a profit.
Apex Can Help You Start a Car Hauling Business
If you plan to haul cars over state lines, our Startup Program can help get your operating authority with the FMCSA. Take advantage of fuel discounts provided by a great fuel card. The Apex Fuel Card offers an average savings of 48* cents per gallon at more than 2,000 in-network truck stop locations. Of course, establish those relationships with brokers and shippers, so they become your dedicated lanes. Finally, work with a reputable freight factoring company, such as Apex Capital, for valuable help with immediate cash flow.
*Average savings of 48 cents per gallon is based on actual In-Network TCS client transactions for Q2 of 2024.
An earlier version of this post was published 9/30/2019.