Auto Transport Industry: Deep Dive into Car Hauling Operations

Auto Transport is a type of specialized trucking that carries more risk for the driver.

Understanding the Auto Transport in and out can be beneficial for people that want to car hauling and for companies that need to move cars around the country.

In this post we’ll go in depth into the nuances of the Car Hauling industry.

What is a car hauler

The auto transport industry serves a multitude of industries with different needs

These are the types of Auto Transport services:

OEM

OEM Stands for Original Equipment Manufacturer, this means that OEM loads are picked up from the manufacturer and delivered directly to a car dealership.

Auto Transport companies like Seaside Auto Transport that specializes in OEM Vehicles help dealerships keep healthy levels of inventory with fast deliveries of more vehicles.

Military & Government Vehicle Transport

A very specialized type of vehicle transport service that fulfills military relocation orders that require privately owned haulers.

The government also has massive fleets of vehicles such as law enforcement and emergency response vehicles often require transportation for redistributions and repairs.

Exotic & Luxury Vehicle Transport

Most Classic Car Collectors utilze enclosed auto transport to protect their high-value vehicles.

Also Luxury car dealerships often move exotic vehicles to their customers, placement in showrooms and even test drives across the country.

Salvage

Wrecked vehicles that were damaged in accidents, insurance claims or natural disasters are often moved to salvage yards, auction and even across the border to Mexico, where are then sold to individuals and yunkyards for spare parts and even for a second life.

Many of these vehicles get imported to mexico while orthers remain in the streets throughout the border as a “Chocolate” car.

Retail

Dealerships often may need to move a few or even dozens of vehicles to different locations.

Fleet Management

Many corporations that own multiple fleets across different offices, cities and even states can often require to move multiple vehicles across the country depending on their specific needs.

More often than not, companies will require to move less vehicles that what it takes to fill a good’ol Open Carrier.

Rentals

The demand for these vehicles across the country varies on the time of the year among many other factors

Many rental companies require relocating multiple vehicles to different cities and up to different states.

These companies also sell loads of vehicles at a discount after they reach a certain point, and these vehicles need to be transported.

POV

POV Auto Transport Companies specializes in transporting single vehicles from and to specific locations. Often purchased by individuals rather than a company.

These services are great because you can charge more per vehicle than Open Carriers.

But the downside is that you can do one at a time and have to be searching for new customers constantly.

Most OEM Auto Transport companies have contracts with longer periods.

Impact of Tariffs on U.S. Auto Transport’s Demand and Market Size

Since the Auto Transport industry is part of the supply chain of new vehicles its important to understand how tariffs will impact the demand for OEM Auto Transport

Although the car production trend has been steadily growing, proposed tariffs on imports from Canada and Mexico could significantly affect the production of OEM vehicles.

The original idea is to push companies to manufacture the vehicle demand inside the US. In this scenario the Auto Transport benefits from the same demand.

However the immediate result of these Tariffs would be higher cost on the vehicles, lowering the demand for new Vehicles altogether, thus leaving many Car Carriers lurking around for some driving gigs.

For Instance, 31% of Chevrolet Silverado trucks are being manufactured in Mexico and 20% in Canada

Open Hauler Auto Transport Prices

In the United States, most cars are transported across the country by truck.

Auto transport companies charge anywhere from 53 cents to over $2.30 per mile depending on many factors.

The main destinations for car shipments in the US include Los Angeles, New York City, Miami, Houston, and Dallas.

Things that can affect the pricing for Car Shipmets across the country:

• Distance: Longer distances cost more but may have lower per-mile rates.
• Gas Prices: Since fuel is as important as the truck itself, gas prices affect the cost for car hauling services
• Vehicle Size & Weight: Larger and Heavier Vehicles are more expensive to ship
• Transport Type: Enclosed transport tends to be more expensive on a per-vehicle basis.
• Seasonality: Prices tend to rise during peak seasons like summer.

How the Auto Transport Industry Work

As mentioned before, there are many different type of Auto Transportation needs and understanding their differences is key.

Open Car Carriers

Open Car Haulers are open on all sides and most are double-deckers.

These car carriers can hold up to 9 commercial vehicles which makes it a great alternative for shipping lots of cars while being the most affordable option.

In this case vehicles are not enclosed, therefore are exposed to the elements in an open car hauler and can be affected by severe weather or even road debris.

Having to clean your vehicles once they arrive is a good trade-off for an affordable auto transport service.

Enclosed Car Haulers

In the other hand, Enclosed Car Haulers are truck boxes that can fit two cars at most but mostly are design to haul only one vehicle.

Enclosed Car Hauling for single vehicles ensure your auto is protected from weather and road debris.

These service is certainly the most expensive type of car hauling since the cost per vehicle is extremely high, where you can pay a couple thousand bucks for shiping a car with OEM vehicles, enclosed car carriers can charge up to 12 grand for delivery.

Seaside Auto Transport Specializes in OEM Vehicle Transports

Fulfill your Car Carrier Needs, get a quote today.

Door-to-Door Auto Transport

Door-to-door Car Shipping is a Auto Transport service a vehicle gets picked up from and dropped at a very specific location that the client requests.

Car Carriers arrive to the pickup location, loads the truck and departs to the desired destination.

Terminal to Terminal Auto Transport

Terminal-to-Terminal auto transport is a type of auto transport service that involves moving vehicles from and to different terminals.

These car carrier companies ofter sign long period contracts to manage their auto transport needs and are a great source of work for car haulers owner operators.

Auto Transport Brokers

Auto transport brokers act as middleman that connect companies that require Auto Transport Services and Car Haulers for Service Provision.

These companies don’t typically own trucks nor vehicles, instead they provide their partners with the connections for business and take a commission on the delivery.

Although working with Auto Transport Brokers can often be more expensive, many companies prefer working with them when they are not going to utilize Auto Transport services very ofter.

Also working with an auto transport broker provides access to multiple service providers and offers that fit better needs.

In many cases working with a broker and actually be more affordable since you get to compare different prices.

While Auto Transport Brokers do the heavy lifting for you, communication issues in back-and-forths might affect your experience with car shipping since you’re not in direct contact with the provider.

Auto Transport Companies

Another option for companies that need Car Hauling Services are Auto Transport Companies.

You can work directly with a car carrier that own trucks or employ independent owner-operators and drivers to get your vehicles from and to your desired locations.

These companies allow you to save on cost since you’re not adding a broker’s commission and you get the plus of direct contact with the carrier.

However Auto Transport Companies might not be trying to compete, therefore not providing the best price in the industry.

Rather focused on quality of service, Auto Transport companies are overall a better alternative for companies that require Open Carriers to Haul Cars ofter.

How to find the perfect Auto Transport Company

Now you understand the industry and its nuances as well as differences between Auto Transport Needs.

Understanding your own needs is important to ensure you get exactly what you’re looking for.

If you’re looking to move a single vehicle often across multiple states you might want to work with a broker. Specially for luxury car dealerships where costs are not really the problem.

However if you’re a dealership, a manufacturer or a car retailer you might need to move more cars more often, then your best option is to work with a Auto Transport Company that specializes in OEM Auto Transport.

Its important to consider that car hauling is extremely challenging and risky for drivers and insurers alike.

This is why you need to consider a car carrier with experience and track record to ensure your vehicles are protected.

Sure, they’re insured, but why go through the hassle?

Get as many quotes as you can and try to lock a good deal with a lengthy contract that entice an auto transport company to keep a preferable rate for your long-term business.