How to Start an Auto Transporting Business

auto transporting

How  to Start an Auto Transporting Business

Consumers, car dealers, and corporations across the globe rely on auto transporting businesses to move vehicles over long distances, thereby saving time, money, and wear and tear on their vehicles. And thanks to new technologies to make auto transporting more energy-efficient, it’s becoming even more popular as an eco-friendly way of moving cars. Starting an auto transporting business can be a rewarding endeavor, and requires both good management and sufficient investment capital. Read the steps below to learn how to start an auto transporting company.

  1. 1

    Determine 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.

  2. 2

    Investigate the competition in your area. If a competitor already covers a large part of the market, consider specializing in one specific niche such as vintage car transport.

  3. 3

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

  4. 4

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

  5. 5

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

  6. 6

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

  7. 7

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

  8. 8

    Choose 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.

  9. 9

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

  10. 10

    Purchase 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.
  11. 11

    Approach auto transporting brokers to be included on their subcontractors’ list. This means that they can hire you to transport cargo for them.

  12. 12

    Advertise your business in local media, as well as on the Internet.

  13. 13

    Open your auto transporting business.


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