Table of Contents
Our Verdict
Start a car carrier trailer business by transporting vehicles for dealerships, auctions, and private parties. This niche is profitable but requires a significant upfront investment in a commercial truck and trailer, insurance, licensing, maintenance, and marketing.
Overall, a car carrier trailer business is rewarding if you’re a mechanically-inclined entrepreneur with substantial capital and a willingness to work hard. However, the work is physically demanding and the economics challenging for those lacking transportation experience. Candidly assess your skills, finances, and mindset first.
Pros
- Expand into a Large Market: Tap into the extensive U.S. vehicle transportation market, driven by its vast size and diverse population, which ensures a consistent demand for moving vehicles across states and regions.
- Utilize Well-Developed Infrastructure: Leverage the extensive network of highways and roads in the U.S., simplifying the efficient and speedy transportation of vehicles.
- Diversify Your Customer Base: Target various customer segments, including individual consumers, car dealerships, rental car companies, and government agencies.
- Capitalize on Economic Stability: Benefit from the relatively stable U.S. economy, providing a steady stream of business opportunities in the vehicle transportation sector.
- Integrate Technology: Embrace technological advancements to streamline your operations, with options such as GPS tracking, load optimization software, and online booking systems enhancing efficiency and customer service.
Cons
- Face High Competition: Navigate the highly competitive landscape of the U.S. car carrier trailer business, with numerous established players, making it challenging to stand out.
- Deal with Regulations and Compliance: Manage the complex and often expensive task of complying with federal and state regulations governing safety, environmental standards, and licensing within the transportation industry.
- Handle Insurance Costs: Address significant insurance expenses, including liability, cargo, and vehicle insurance, which can be particularly burdensome for newcomers or those with limited experience.
- Manage High Initial Investment: Secure the necessary car carrier trailers, suitable trucks, and related maintenance and insurance, requiring a substantial upfront investment.
- Navigate Fuel Price Volatility: Adapt to fluctuating fuel costs that can significantly impact operating expenses, posing challenges in budgeting and financial management.
- Address Driver Recruitment and Retention: Overcome the difficulty of finding qualified and reliable drivers, exacerbated by a national shortage of commercial drivers. High turnover rates and the need for competitive salaries and benefits can increase labor costs.
- Adjust to Seasonal Variations: Manage the variable demand for car transportation services, with certain seasons, such as winter for snowbird migrations or spring for auto auctions, experiencing higher activity levels than others.
- Address Environmental Concerns: Address the growing emphasis on environmental sustainability and emissions reduction by potentially investing in newer, more fuel-efficient vehicles or alternative fuel technologies.
Who a Car Carrier Trailer Business is Best For
Go ahead and explore this business venture if you:
- Have ability to invest $75k or more for a truck, trailer, and initial operating costs
- Acquire experience in hauling cars or in the automotive industry
- Find comfort in towing large vehicles and driving for 10+ hours
- Handle minor road repairs
- Manage to handle licensing, insurance, maintenance, and other operational components
- Handle late night/weekend transport runs themselves initially
- Build a customer base through marketing
- Comfortable working outdoors loading/unloading cars in all weather
- Have stamina for long hauls and physical car handling
- Live in states with major metro hubs – Major cities like Los Angeles, Houston, Miami and others have built-in demand from dealers, auctions and corporate relocations.
- Own a car carrier trailer business in states crossed by major interstates – Interstate highways provide convenient long-haul routes between markets. I-10, I-95, I-5, I-80 and other major interstates offer accessibility.
- Explore states with temperate climates – Avoiding extreme weather makes maintenance, tire wear, and hauling safer. Texas, California, Florida and others see minimal snow and ice.
- Live in states with pro-business regulations – Texas, Florida, Wyoming and others with less red tape allow quicker licensing and compliance.
- Leverage state trucking associations for support and cost savings
Sufficient capital, transportation experience, DIY mechanical skills, and comfort with long hours are key prerequisites to succeed in the car hauling business.
Who a Car Carrier Trailer Business Isn't For

On the other hand, explore other ventures if:
- Need access to $70,000+ in capital for equipment
- Lack a Commercial Driver’s License and car transportation experience
- Struggle with manual tasks like strapping down vehicles
- Look for primarily for passive ownership
- Need a traditional 9-5 schedule
- Hope to scale quickly with minimal time investment
- Find discomfort in handling large vehicles at highway speeds and workload fluctuations
- States with steep licensing barriers – Illinois, New York and others have tougher licensing and operating requirements. This delays operations and hikes costs.
- Stay in rural states
- Explore states lacking transport infrastructure
- Attempt to operate statewide too quickly before proving your model locally
- Do not check state regulations prior to making major equipment investments
Do diligent research into your state’s unique transportation environment, costs, regulations, infrastructure, and competitors. Then tailor your preparation and strategy accordingly.
What a Car Carrier Trailer Business Offers
A Car Carrier Trailer Business Offers:
- Transport a wide range of passenger vehicles, including cars, trucks, SUVs, motorcycles, and more, across the country safely using specialized equipment.
- Provides versatile shipping options, allowing customers to choose between enclosed trailers for protected vehicle transport or open-air trailers for more budget-friendly shipping solutions.
- Offers convenient door-to-door delivery by picking up vehicles directly from the customer’s location and delivering them to their designated destination.
- Boasts nationwide reach, with established carriers having the infrastructure, drivers, and equipment needed to ship vehicles to any state within the continental United States, providing coast-to-coast capabilities.
- Equips customers with real-time tracking tools, allowing them to monitor their vehicle’s status throughout the entire transit process.
- Includes comprehensive insurance coverage, offering protection against damages or loss of the vehicle during transport, providing peace of mind to customers.
- Provides expedited shipping options for those seeking faster delivery, complete with guaranteed delivery times for an additional fee.
- Offers storage services, with some companies providing secure short or long-term vehicle storage services in enclosed and protected lots.
- Facilitates international transport with select carriers offering international transport services, allowing for the shipping of vehicles overseas using various freight methods.
- Demonstrates expertise in securely securing and transporting a wide array of vehicle types, from everyday commuter cars to high-end sports cars.
Car Carrier Trailer Business Equipment & Operating Details
Key elements to operate legally and safely include:
- Own a Class 8 commercial truck and hydraulic car trailer rated for transporting 6-8 vehicles.
- Obtain Department of Transportation authority and the necessary operating permits for legal operation.
- Secure commercial insurance covering cargo, liability, and accidents to safeguard your business and assets.
- Conduct DOT inspections, implementing a comprehensive maintenance plan, and maintaining diligent record-keeping to ensure vehicle safety and compliance.
- Utilize digital tools such as GPS devices, dash cams, tablets, and smartphones for efficient operations and communication.
- Equip your business with securement equipment, including straps, ties, wheel nets, and other tools to safely secure vehicles during transport.
- Instal loading ramps to facilitate the safe and efficient loading and unloading of vehicles.
- Register with the Department of Motor Vehicles as a motor carrier to meet regulatory requirements.
- Implement bookkeeping systems to meticulously track costs, manage invoices, and monitor cash flow for financial stability.
- Manage fuel taxes since they fluctuate by state and significantly impact operational costs, requiring careful pro forma calculations for financial planning.
Where a Car Carrier Trailer Business Stands Out
Advantages of using an owner-operator car hauler include:
Provides door-to-door convenience
The ability to pick up and deliver vehicles right at the customer’s home or location is a huge advantage over having to drive to terminals.
Ensures coast-to-coast reach
An extensive hub and spoke terminal network, coupled with experienced drivers, gives car carriers true nationwide capabilities unmatched by local transporters.
Enables real-time tracking
GPS tracking technology enables customers to monitor their vehicle’s location and status throughout its journey for total peace of mind.
Ensures timeliness
Carrying only 1 to 5 vehicles per trailer allows more direct routing and expedited options difficult for mixed freight haulers.
Facilitates rapid scaling
The asset-light model allows quick expansion through contractor drivers versus acquiring more company trucks.
Offer flexible services
Car carriers offer expedited delivery, enclosed trailers, vehicle preparation, and storage services catering to owners’ unique needs.
Minimize warehousing
Vehicles are driven directly onto trailers, avoiding warehousing that increases handling risks and costs.
Challenges Facing the Car Carrier Trailer Model

However, there are also substantial hurdles including:
- Incurs very high start-up costs for equipment, licensing, and operating capital
- Work long hours and managing a demanding workload inherent to the car transportation industry
- Navigate fluctuating fuel prices that directly impact profitability
- Strive to achieve profitability and maintain cash flow despite tight hauling margins
- Endure stressful driving conditions, including weather, traffic, and night hauls
- Ensure truck maintenance and complying with DOT regulations
- Compete with the scale and rates of corporate car hauling companies
- To set yourself apart from competitors as an independent operator
Qualifications to Start a Car Carrier Business
To legally haul cars for pay, you need to:
Hold a valid Class A Commercial Driver's License (CDL)
This license is necessary to operate a commercial vehicle, such as a car carrier trailer, for pay.
Register with the Department of Transportation (DOT) and Obtain Motor Carrier Authority
Registering with the DOT and obtaining motor carrier authority permits you to operate as a commercial carrier within the legal framework.
Comply with DOT Safety Standards
Ensure your operations and vehicles meet the safety standards and compliance requirements set by the DOT to promote road safety.
Secure Commercial Auto Insurance
Obtain commercial auto insurance that covers cargo, liability, and accident risks to protect yourself and your clients in case of unforeseen events.
Use an ELD (Electronic Logging Device)
Install and use an ELD to electronically log hours of service and ensure compliance with federal regulations regarding driver hours and rest periods.
Pass DOT Vehicle Inspection Requirements
Regularly maintain and inspect your vehicles to ensure they meet DOT safety standards and pass required inspections.
Maintain Adequate Financial Resources
Have the necessary financial resources to operate your business legally and safely, covering expenses like fuel, maintenance, insurance, and payroll.
Consider Business Structure
Many trucking businesses choose to incorporate as a legal entity like a Limited Liability Company (LLC) to protect personal assets and establish a formal business structure.
Cutting corners on compliance risks fines, shutdowns, and forfeiting insurance coverage when accidents occur. Do it right from the start.
How to Start a Car Carrier Trailer Business
Key steps when launching a compliant car hauling business include:
- Gain a multi-year transportation experience through working for an established carrier
- Research vehicle transportation demand in your metro area and region
- Attend auctions and dealership events to network and market services
- Purchase an appropriate commercial truck and hydraulic car trailer
- Complete DOT trucking registration, licensing, insurance paperwork
- Create company brand, website, marketing materials
- Build a customer roster with commitments before operations begin
- Stock spare parts, materials, and safety equipment
- Complete DOT inspection, maintenance, and compliance steps
- Implement hauling safety protocols, load securing training
- Test runs to refine routes, navigation, timing to maximize profit
Remember, there are no shortcuts when lives and valuable cargo are on the line.
>>>GET SMARTER: Car Carrier Trailer LLC: Everything You Must Know
Alternatives to Operating a Car Carrier Business
Other options if a full car carrier business seems too risky:
- Lease your trucks and drivers to an established car hauler
- Broker auto transports as an intermediary
- Starting a vehicle relocation service
- Manage an existing car hauler terminal
- Operate a mobile auto repair service
- Open an automotive detailing shop
- Sell add-on insurance
Evaluating these alternatives can uncover options with lower barriers to entry and capital requirements while still leveraging your auto transport expertise.
Pro Tips
- Gain hands-on experience working for an established auto transportation company first
- Track costs and aim for larger volume discounts on insurance, maintenance, equipment, etc.
- Build relationships through attending dealer auctions and networking events
- Consider specializing in higher-margin vintage, exotic, or specialty car hauling
- Leverage digital tools like load boards to secure one-off transport opportunities
- Focus intensely on safety and loss prevention to protect your assets and income
- Create a professional brand identity and website to stand out
- Provide premium care and service to differentiate from discount carriers
- Have emergency breakdown resources lined up in case of road trouble
- Secure commitments from anchor corporate clients to guarantee baseline revenue
- Do not overextend yourself hauling extensively until your operations are solid
Careful preparation, financial diligence, controlled growth, and resilience against unavoidable hurdles are proven success factors.
Recap
In summary, a well-equipped car transportation business run efficiently can absolutely deliver fulfilling ownership. But sufficient capital, transportation expertise, determination, and business management skills are fundamental.
The article provides a comprehensive review of starting and operating a car carrier trailer business. It highlights the challenges, prerequisites, and potential rewards of this venture, emphasizing the need for substantial capital, transportation expertise, and compliance with regulations.
Evaluate comprehensively your state’s transportation landscape, car hauling is an absolute thrive if key variables align. But the model is not universally suited for every market.
Do diligent planning and solicit local expertise as you consider taking the leap.