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Great Opportunities Ahead For Car Hauling Owner-Operators

Great opportunities ahead for car hauling Owner-Operators

People buy new vehicles every day (for personal and commercial use,) people relocate every day, and people exchange vehicles as well. And that’s great news for owner-operators in the car hauling business.

While there are so many modes of transportation, transportation by road has been identified to be the most common because of its high flexibility. And the most common road transport means in the developed world is the automobile. Relocating from one geographical location to another, international trading, purchasing a new vehicle to meet personal and business needs, carrying out certain business operations, and many more are the reasons why we the entire US economy relies on auto transporters.

A recent survey by automotive trade journal predicts that, come 2035 there would be more than 2 billion vehicles moving around the world. This has doubled the demand for auto transport services and the supply hasn’t remained the same.

The Auto-shipping industry has therefore grown beyond reasonable doubts and the annual market worth is estimated to be 5 billion US dollars and above. Optimum security, as well as timely delivery, are the main benefits customers are looking for.
If you are looking towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

The car hauling/towing services business is not a green business; as a matter of fact, you will come across several car hauling/towing services companies when you are in need of their services. So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and cost of the amount required to rent a garage and the amount needed to purchase towing vans, toolbox, fueling and maintenance, acquiring the required licenses and also the running cost of the business.

Over and above, if you are considering starting a car hauling business, your concern should not be limited to the cost of renting a garage and the amount needed to purchase equipment, but also on branding and on how to build a robust clientele base.

The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business. With a car hauling business, you should just try as much as possible to secure a garage that is close to a major road or mechanic village and then leverage on every marketing tool within your disposal especially the internet to market your car hauling/towing services company.

Get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in. The car hauling/towing services business is not a green business; as a matter of fact, you will come across several car hauling/towing services companies when you are in need of their services.

So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and cost of the amount required to rent a garage and the amount needed to purchase towing vans, toolbox, fueling and maintenance, acquiring the required licenses and also the running cost of the business.

Over and above, if you are considering starting a car hauling business, your concern should not be limited to the cost of renting a garage and the amount needed to purchase equipment, but also on branding and on how to build a robust clientele base.

The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business. With a car hauling business, you should just try as much as possible to secure a garage that is close to a major road or mechanic village and then leverage on every marketing tool within your disposal especially the internet to market your car hauling/towing services company.

Possible Threats and Challenges

If you decide to start your own car hauling business today, one of the major challenges you are likely going to face is the presence of well – established car hauling companies.

The best strategy to keep your truck loaded and riding all the time is to partner with a professional dispatch service.

This way you can focus on driving safely and deliver on time. One key aspect of your business is having enough cash to pay for current expenses (fuel, maintenance, your salary) as customers usually pay within 30 – 60 days. To avoid expensive credit you may consider invoice factoring service for owner-operators.

Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape, car hauling services companies and the likes usually struggle to maintain their old customers or even welcome new customers.

So also, unfavorable government policies can also hamper the growth of your car hauling services. There is nothing you can do as regards these threats and challenges other than to stay positive that things will work well for you.

Bill Schroeder, general manager of the Auto Haulers Association of America, says another challenge for drivers getting into car hauling today is gaining experience. Most insurance companies want drivers to have at least two years of over-the-road experience with a commercial driver’s license before hauling cars. On-the-job training is one way to learn the business.

“Small owner-operators tend to do it that way unless they work for a larger company before getting their own unit,” Schroeder says.

How much can you make as an Owner-Operator in car hauling business?

Auto hauling is one of the more difficult trucking segments to enter and master, but it also can be one of the most financially rewarding. According to data collected from 3,695,123 employees, users, and past and present job advertisements on Indeed, the average salary for “car hauler” ranges from approximately $57,806 per year for Driver to $235,344 per year for Owner Operator Driver.

What auto haulers are saying about their earnings:

“When I’m putting together a load on Central Dispatch, I’m looking for a full 10-car load, otherwise it’s not worth my time,” Lepkesays. “I used to run empty coming home, but with Central Dispatch, I was able to find cars coming back to Detroit out of Florida, so I get paid going both ways.” On a recent run, Lepke left La Crosse, Wis., and picked up eight cars in Milwaukee to haul to south Florida. He then picked up eight more cars and took them to Detroit. He grossed $11,500, about $4 a mile, but made 33 stops.

Dean Zervas, who drives hot shot and hauls cars in a two-car enclosed trailer, hauls mostly classic or rare cars, clearing $125,000 to $150,000 annually.

“I haul play toys for guys with big money,” Zervas says. “I’ve got a car background, a good presentation for customers with no straps touching the cars, and I’m at about 80 percent repeat business now. My customers know they’re getting high-quality service from me.” “Rates are higher now than they were during the recession, partly because of the driver shortage,” he says. “It seems to be worse on the car hauling side because it’s a more physical job than some other segments of the industry.”


Bottom line, industry numbers, and trends, as well as owner-operators’ testimonials, confirm that the auto hauling niche is hard but the most profitable if you can.

Sources: HuffPost

www.indeed.com

www.profitableventure.com

www.overdriveonline.com

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