How to Start a Car Hauling Business in 2023 – Step by Step Business Guide

Beginning a car hauling business will take you on an exciting but uncertain path. It’s wonderful to be somewhere between being your boss and driving automobiles you’ve never driven before. Yet, the road to success will be long and difficult, especially if you have no idea what you’re doing or how you’re going to get there.

It’s critical to get your car hauling business off to a good start. This includes taking the necessary precautions to avoid legal problems. You must also aim to make your experience as easy as possible, with few hitches.

Read on to learn more about the car hauling business and how you can start it like a boss in 2023.

What Is a Car Hauling Business?

Car hauling is the transportation of automobiles from one location to another. Drivers in this industry are in charge of loading each car into a specifically constructed trailer and assuring the vehicles’ safety. They must also ensure that the trailer complies with all weight constraints and safety regulations.

Vehicle manufacturers and dealerships are often not engaged in the transportation component of transferring automobiles. Instead, the trucking industry handles this portion of their company. A car hauling company essentially works as a go-between for the shipper and the customer.

Car hauling may also refer to moving an automobile to a new area for those who are relocating.

What Are the Advantages and Disadvantages of Owning a Car Hauling Business?

In principle, owning a car hauling business seems appealing, but are you prepared to shoulder the responsibilities? Consider the advantages and disadvantages, and then determine if you would be better off working on your own or with a trustworthy firm.

Advantages of Car Hauling Business 

  • Growing industry that can be beneficial for you
  • The profit margin is very high
  • Be the boss of your own company 
  • Business brand building 
  • Better visibility thanks to open trailers 

Disadvantages of Car Hauling Business 

  • The cost of maintenance can be high
  • High licensing cost
  • Establishing can be difficult 
  • Responsibilities increases 

What Is the Start-up Cost of a Car Hauling Business?

A car hauling business might cost between $7,000 and $15,000. The most expensive item is a down payment on a 7-car hauler trailer, which may cost anywhere from $35,000 used to $70,000 or newer.

Easy Steps to Start a Car Hauling Business 

Are you planning to start a car hauling business but don’t know where and how to start? The easiest method to avoid legal troubles or other problems is to take certain steps.

Listed below are a few steps that can help you start a car hauling business:

Step-1: Prepare the business plan- Starting a new car hauling business without a business strategy is a recipe for disaster. For example, you must understand what you will be hauling, where you may find consumers, your goals, and how you want to build the firm. Your car hauling business plan will act as a guide to assist you in dealing with unanticipated duties and expenditures. You may wish to seek expert assistance in developing the business strategy to ensure its viability.

Step-2: Obtain your CDL- After you have created the plan for the business, you must obtain a CDL-A license. This will help the company to get insured with ease and the fees would also be less. You may also need a standard “for-hire” authority to fulfill the company’s federal and state legal requirements that are necessary.

Step-3: Decide on the correct equipment- The following step is all about getting the right equipment. You’ll need to decide what kind of truck/trailer you want and then check around for prices. Many individuals select their equipment based on the route they want to take. A greater price tag implies a better profit potential. Only you can choose the best one, but keep in mind your travel goals as well as your financial situation.

Step-4: Plan your budget- Understanding your whole costs before launching any firm is critical. These include one-time, continuing, and future expenses. Do you understand where your working capital comes from, what your daily running expenditures are, and how you will handle unforeseen expenses? Making a budget will help you plan for these expenses. 

Step-5: Obtain insurance quotes- The freight you transport in the car hauling industry is of tremendous worth. As a result, insurance providers want to ensure that you have sufficient coverage. You should have $2-4 million in liability insurance and nearly $600,000 in cargo insurance.

Step-6: Learn to load and unload properly- It is a difficult task to load and unload an auto transport trailer. It takes a great deal of skill to guarantee that all moving components work properly. The driver must take into account the size of each vehicle as well as the order in which they are to be unloaded. Make sure you obtain expertise in this crucial area of the job before launching a vehicle hauling firm.

Step-7: Ensure that all legal requirements are fulfilled- You will need several permits before you can start your car transport business, including UCR (Unified Carrier Registration), IFTA (International Fuel Tax Agreement taxes), IRP (International Registration Plan taxes), HVUT (Heavy Vehicle Use Tax), DOT (Department of Transportation fees), and an MC Number. It is critical to pay the fees on time to prevent incurring large penalties or having your vehicle impounded.

Step-8: Signing up for the load board- When the FMCSA has approved your permission, you must register with the load board. Brokers, dealers, and transporters utilize a load board. The board may be used to find and book loads for a price.

Step-9: Get to work and make money- The final stage is self-evident. Maintain your legal status and drive carefully. It’s time to start generating money once you’ve begun locating loads and acquired a feel for the load board. It will not be easy, and you will make errors, but you are on the right track.


Finally, you can start your own car-hauling business with the above-mentioned tips. Car hauling for a living may be a successful business if you prepare ahead of time, remain up to speed on rules, and work hard.

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