How to Start an Auto Transporting Business

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.

Steps

1Determine what type of auto transporting business you want to start. There are auto transporting businesses that provide open car transport for regular vehicles, specialized auto transporting businesses that offer enclosed car transport for vintage and exotic vehicles, and those that provide both types. Open car transport utilizes car haulers on which the vehicles are exposed to the elements, while enclosed car transport makes use of special car haulers that are sealed on all sides to protect the cars inside.

2Investigate the competition in your area.XTrustworthy SourceU.S. Small Business AdministrationU.S. government agency focused on supporting small businessesGo to source If a competitor already covers a large part of the market, consider specializing in one specific niche such as vintage car transport.X

3Obtain your commercial driver’s license from the appropriate department in your state.X

4Draw up a business plan that includes your start-up costs, projected revenue, market, business strategy, and marketing plan.X

5Raise investment capital by presenting your business plan to private investors or your bank.X

6Get your motor carrier number and transportation license.X In most countries, these are issued by the Department of Transportation.

7Buy cargo and liability insurance.X When starting an auto transporting business, you’re required to carry insurance on each cargo, though the amount will vary depending on your location.

8Choose a location for your auto transporting business. You’ll need good access to major routes as well as sufficient room to load and unload the car haulers. Check with your city to make sure you comply with local zoning laws.

9Have a lawyer draw up auto transporting agreements, and employee contracts if you are planning to employ staff.

10Purchase the necessary equipment.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.