Getting Started in Car Hauling: What Do You Need to Transport Cars?

2023 was a roaring year for auto transport companies and the car hauling industry, with a remarkable 17% growth, translating into 23.7 million car shipments. This growth, coupled with high demand, led to a shortage in supply, while car transport companies enjoyed record profits.

Furthermore, the auto transport industry as a whole is projected to continue growing steadily, with an expected increase in market size from $10.4 billion in 2023 to $13.7 billion by 2033. This growth is driven by the rising popularity of EVs and increased transportation activities.

In other words, as a new entrant, you’ll find numerous opportunities in this expanding market. The car hauling industry presents significant growth potential, and if you’re considering entering this booming field, understanding exactly what you need to start transporting cars is crucial.

Keep reading to learn the essential steps, from legal requirements and the necessary equipment to understanding industry regulations and obtaining all the required documents, to ensure you’re well-prepared to embark on your new car hauling business.

What Do You Need to Transport Cars?

You need to check off several boxes before you can begin your operations as a car shipper. Here are three key areas to focus on.

Legal Requirements for Car Haulers

Entering the car hauling business requires navigating a series of legal hurdles to ensure compliance and secure operations. Here’s what you need to know:

• Commercial Driver’s License (CDL): Operating large car haulers typically requires a CDL. Check with your state’s Department of Motor Vehicles (DMV) for specific licensing requirements, which may vary depending on the size and type of vehicle operated.
• USDOT and MC Numbers: Register with the Federal Motor Carrier Safety Administration (FMCSA) to obtain a United States Department of Transportation (USDOT) number, necessary for all vehicles hauling cargo in interstate commerce. Additionally, if you plan to operate as a broker or carrier, you’ll need Motor Carrier (MC) authority.
• Insurance Requirements: Car haulers must carry adequate proof of insurance to cover potential damages to vehicles in transit and liability in case of accidents. This includes liability insurance, cargo insurance, and possibly additional coverage depending on the states in which you operate and the nature of your hauls.

Understanding and complying with these requirements are the first critical steps toward establishing a legitimate and successful car hauling business.

Essential Equipment for Car Transport

As with any business, investing in the right equipment is crucial to hit the ground running correctly.

First off, car haulers come in two primary types: open and enclosed trailers, each serving different purposes based on the cargo’s needs. Here’s what you need to know about them:

• Open Trailers: These are the most common and cost-effective car transport options. They are typically used for standard vehicles and are more exposed to the elements and road debris. Open trailers can carry more vehicles at once, making them efficient for mass transport.
• Enclosed Trailers: These offer enhanced protection from weather, road debris, and potential theft, making them ideal for transporting high-value, luxury, classic, or exotic cars. Enclosed transport provides a secure environment, ensuring the vehicles arrive in pristine condition. However, it can carry fewer vehicles compared to open trailers and costs more.

Choosing the right type of trailer depends on the specific needs of the clients you’re targeting, the insurance terms, and the level of protection required.

Next, in addition to the primary hauling equipment like trailers, there are several essential tools and supplies that facilitate efficient and safe car transport:

• Straps and Tie-Downs: High-quality straps are crucial for securing vehicles to the trailer, preventing movement during transit.
• Ramps: Durable ramps are needed for safely loading and unloading vehicles, especially for non-operational cars or those that sit low to the ground.
• GPS Tracking Devices: These devices track the transport in real time, providing updates on vehicle location and estimated arrival times to the hauler and clients.
• Wheel Chocks: Used to block the tires and prevent rolling, enhancing vehicle stability on the trailer.
• Emergency Roadside Kits: Including tools and supplies for handling minor repairs and emergencies on the road.

These tools not only help ensure that your vehicle condition report complies with safety standards but also improve the overall efficiency and reliability of your car shipping services.

Put simply, investing in high-quality equipment means better:

• Cargo Protection: Quality equipment such as well-maintained trailers, durable straps, and properly functioning ramps ensure that vehicles are transported without damage. This is especially important for high-value cars where damage can lead to significant financial loss.
• Safety Compliance: Using equipment that meets or exceeds safety standards is essential not only for the protection of the cargo but also for the safety of the hauler and other road users. Compliance with safety regulations helps avoid penalties and legal issues that can arise from accidents or safety violations.
• Operational Efficiency: High-quality equipment is typically more reliable, reducing downtime caused by mechanical failures or repairs. This reliability can improve service delivery times and increase client satisfaction, thereby enhancing your business reputation and potential for repeat clients.

So, investing in the best possible equipment and shipping process is not just about meeting minimum requirements; it’s about ensuring longevity, reliability, safety, and client trust in your car shipping company.

Adhering to Industry Regulations

The FMCSA mandates some critical regulations that every car shipping company must follow to ensure better safety and reliability of operations. These include (but are not limited to):

• Hours of Service (HOS): These regulations are critical for ensuring drivers do not operate vehicles while fatigued. They specify the maximum hours a driver can be on the road and mandate rest periods. Compliance is crucial to avoid hefty fines.
• Vehicle Maintenance Standards: Regular checks and maintenance of vehicles are required to ensure they meet safety standards. This includes routine inspections before and after trips to prevent mechanical failures that could lead to accidents or delays.
• State and Local Regulations: In addition to federal requirements, car haulers must adhere to state and local laws that may impose additional restrictions or requirements. These can vary and affect aspects like weight limits, vehicle dimensions, and routes.

Staying updated with state and local regulations is crucial for car carriers operating across different jurisdictions. These regulations can vary significantly from one state or locality to another, affecting everything from weight limits and vehicle dimensions to vehicle registration and specific route restrictions.

So, if you plan to ship a car interstate or intrastate, understanding and adhering to these diverse requirements is essential to avoid legal complications, ensure smooth operations, and maintain compliance. Regularly reviewing updates in transportation laws and engaging with local transportation authorities can help keep your operations legal and efficient.

Compliance and Safety Best Practices

Navigating the maze of transportation laws can be daunting, but staying penalty-free is crucial for the health and profitability of your car hauling business. Here are actionable tips to ensure you remain on the right side of the law and avoid costly penalties:

• Stay Informed: Regularly update yourself on changes in transportation laws through reputable sources or subscriptions to regulatory bodies’ newsletters.
• Implement Compliance Checks: Establish routine checks to ensure all aspects of your operations, from equipment to driver qualifications, adhere to the latest regulations.
• Leverage Technology: Use management software to efficiently track and manage driver hours, vehicle maintenance records, and compliance documentation.
• Engage with Professionals: Consider consulting with legal experts or compliance professionals to review your operations and advise on any potential vulnerabilities.

Moreover, here are some best practices for ensuring safety for both your drivers and everyone else on the road:

• Regular Vehicle Inspections: Conduct thorough inspections of your hauling equipment before and after each trip to identify and fix potential issues that could lead to accidents or violations.
• Driver Training: Invest in ongoing training for your drivers to ensure they are up-to-date on the latest safety protocols and driving regulations.
• Documentation: Keep meticulous records of all inspections, maintenance, and driver hours to ensure compliance and streamline any potential audits.

Adopting these best practices will help your transport company minimize the risk of penalties and enhance the safety and efficiency of your car hauling operations.

Maximizing Business Operations

Efficiency and reputation are pillars of a successful car hauling business. Here’s how strategic route planning and comprehensive fleet management can elevate your operations, ensuring you deliver reliable and timely service that keeps clients coming back:

• Efficient Route Planning: Utilize advanced GPS and routing software to determine the most efficient routes. This reduces fuel consumption, saves time, and can increase the number of trips made.
• Fleet Management: Implement a fleet management system to monitor vehicle health, track maintenance schedules, and manage driver assignments. This will ensure your fleet operates optimally and reduce downtime.

Super Dispatch enables efficient route planning and fleet management through its comprehensive tools designed for the auto transport industry. The platform includes features like advanced GPS tracking for real-time vehicle monitoring, automated load matching for optimized routing, and integrated communication tools that streamline operations across the board. It simplifies the transportation process and boosts overall efficiency, making it easier for you as a carrier to manage your operations and maintain compliance with industry standards.

Furthermore, building a solid business reputation is about showing your clients you’re reliable and committed to their satisfaction. Try to ensure your deliveries are always on time or even ahead of schedule, which helps build trust. Keep your service quality high, from taking care of the vehicles you transport to providing top-notch customer interactions. 

And don’t forget about clear, consistent communication; keep your clients in the loop with real-time updates and respond quickly to their questions. This approach improves the customer experience and further encourages them to recommend your auto shipping company to others.

Boost Your New Business with Super Dispatch

Getting started in the car hauling industry requires careful planning, from meeting legal and safety requirements to building a solid business reputation.

Super Dispatch provides an all-in-one platform designed to simplify these essential aspects of car hauling, helping you streamline operations and stay compliant with industry regulations. With tools for efficient route planning, fleet management, real-time tracking, and seamless communication, Super Dispatch empowers you to focus on what matters most: delivering reliable, high-quality service to your customers.

Ready to set off on the right foot? Contact us to get a free demo today!

FAQs

What essential documents do I need for international car transport?

For international car shipping, you’ll need certain documents, such as the vehicle’s registration, proof of insurance, customs documents, and import permits. Ensure you have an inspection report detailing any pre-existing damage to keep your vehicle safe and adequately insured throughout the transport process.

How do transport companies ensure the vehicle’s condition is documented?

Most companies use a vehicle condition report at both pickup and delivery, documenting any existing damage through a joint inspection. This helps ensure a vehicle is transported safely and any changes in condition are accurately recorded.

What do I need to transport cars safely and legally?

To transport cars, you’ll need insurance documents, a vehicle inspection report, and proper licensing. Working with the right auto transport company ensures your vehicle is handled by a reliable carrier, which is especially important for long-distance or enclosed transport. Having all essential documents, like insurance coverage and inspection reports, in place guarantees a smooth and compliant car shipment process.