Car hauling questions

[Preacher]

Since there have not been any postings here since this forum was birthed, I thought I'd be the first. Actually I have some questions that might be answered. My first question for any car hauler is, do you prefer to haul for dealers or for the general public? My second question goes to any car hauler with their own authority. On average, how much per mile are your expenses, both fixed and variable costs? The third question is for company drivers. How much have you earned in the past year and is it worth the work involved?

I have hauled cars for back hauls on my 40' gooseneck flatbed, which can carry 2 at a time. Lately it seems as though nobody wants to pay very well to have their car hauled half way across country. I have considered getting a 4 car Wally-Mo gooseneck with three on top and one in the belly, or I have thought about getting a single axle tractor and a six car trailer to start with. Any suggestions?

[car haulers]

The first truck drivers I got to know were car haulers. They set the stage for everything I've done in the trucking industry. They were union drivers, and they told me the best stories. Since then, I've met independent and non-union car haulers.

I've always wanted to watch them load the cars, and we are trying to have a demonstration of this at the Highway Interdependence Day. We have one local company that does this, and one of the committee members is asking them if they will participate and give a demonstration to the public.

Preacher, I know this doesn't answer your questions, but I have a soft spot in my heart for car haulers.

By the way, one of my students (she is 80 years old) moved to Denver from Scranton. Her son-in-law made the arrangements. I believe she said she was paying either $1200 or $1500 to have her car hauled to Denver

[Big_Dave]

Maybe fire off a PM to Dave Sweetman. He hauls cars (mostly exotic ones), for Horseless Carriage outta Jersey.

[Preacher]

I hope to eventually move from hotshotting to car hauling. Like you said, one car going to Denver was $1200! With my own authority and a 10 car hauler (3 on headrack + 7 on a stinger) I could haul for local dealers who take their cars to auction in KC or Dallas for $200 per car. Then they pick-up new inventory at the auction to bring back and re-stock the dealership. That's $2000 there and $2000 back. Not bad for 2-3 days worth of work.

I grew-up around the car business in St. Louis. My dad was a Lincoln-Mercury dealer for 28 years until he retired and sold the dealership back to Ford, who was looking to buy-out a local L-M dealer and put in a minority dealer. Prior to that he was a well known local used car dealer for over 20 years. I used to watch the car haulers bring in loads when I worked for him and I also checked the cars in. I would get into conversations with the drivers about car hauling and often thought about getting into the business, but never did. That was back 25 years ago when I was in my 20's.

Now as I look at the car hauling business and do my homework I can see that it is very profitable. Of course it is alot more work, loading and unloading cars, but the pay-off makes it all worth the extra work. For instance: 10 cars going to Dallas @ 200 ea. = $2000. Dallas to Tulsa is around 300 miles. $2000 divided by 300 = $6.66 per mile. And that is at dealer rates. Look at the retail price that was quoted for taking your car from Scranton to Denver. Multiply that times 10 and you get $12,000! One driver I talked to about 6 months ago said his 9-car hauler grossed $240,000 for the year on 80,000 miles. He was paid around $55,000 and expenses are around $70,000 for all expenses, including truck payments, insurance, and maintenance. That leaves $115,000 profit per rig, per year! Now imagine owning 5-10 rigs. Not bad if you ask me!

[Big_Dave]

Keep in mind, a lot of them car haulers run about 50% deadhead miles. I don't know if that's because of a 'exclusive contract' with a supplier or not. But most that I have talked to have said this. :wtf:

[Bikerboy]

I have also noticed alot of car haulers running empty along the 401 between toronto and michigan. Theres only two companies that haul cars along there, and there both union. They can each haul 9 cars. Seeems they haul new cars from the auto plants near toronto into michgan and then sometimes run empty back, then i will see the other company hauling cars from michigan into ontario and somethimes they will go back to michigan empty.

I would be interested in hauling cars, but since there all union, the trucks are all old ones. And new drivers start on nights. It would also not be much fun in the winter.

[Preacher]

As an independent O/O, there are load boards available that have auto hauler loads such as www.CentralDispatch.com and others. I know of another guy I talked to in Ft. Worth who started with a 3 car wedge and a 1-ton truck. Within 6 months he was up to a 6 car hauler and a single axle tractor. By the end of one year he was using a full tractor w/headrack and a 7 car high mount quick loader. Used car departments of new car dealers also must rotate inventories. Most will not keep a car on the lot over 60-90 days. They then ship them to the auction and buy replacement inventory to haul back. I don't see too much problem with getting loads going both directions. If you haul new cars it's a different story. You usually take a load out and deadhead back.

[DrivingZiggy]

One reason that some folks are trying to get cheap may be eBay. I know the guys in my car club are buying/selling cars all the time on eBay. But it seems like the millions of folks who use eBay have no clue about our side of the business.

[ATCO]

Merk forwarded me to www.uship.com
Mostly e-bay stuff... Looks like it might be source for some used cars, but a lot of these guys have really low target pricing...

[Twmaster]

Hiya Preacher.

I am heading back into the auto transport world. I've had enough of local/regional expedite. I left the transport business in '98 to chase a career in the IT world. Did great until the dot-bombs of 2001. :p

Anyways, I'll be reactivating my authority and buying a hauler similar to yours real soon now. I'll likely go with a Kaufman wedge trailer.

I fortunately still have contacts in the auctions around here so there is work lined up as soon as I can get back on the road.

Also as Big Dave pointed out there is a lot of deadhead involved. Fortunately most of the work going in/out of northern NJ and NYC can be set up for a round trip.

[Twmaster]

By the way, one of my students (she is 80 years old) moved to Denver from Scranton. Her son-in-law made the arrangements. I believe she said she was paying either $1200 or $1500 to have her car hauled to Denver

That is good money to the truck but you would need more than 1 car to make that trip worthwhile. Also, the lower paying auto dealer/auction work is your day-in, day-out bread and butter.

[bigdog]

Preacher, you say you haul a couple of cars on your gooseneck for back(no such term) hauls. My question to you is does your cargo insurance know you are hauling autos?

I started in this industry in the 60's and have seen all the ups and downs of trucking. I first drove a car hauler to Chicago and Detroit with a 238 Detroit. Ain't nothing more fun than loading and unloading in the snow and ice. My wife and I bulit our company to what we have today, a van divison, an auto transport division, an ag division (bulk, dump, hopper, flat) and a brokerage. The auto divison hauls local and regional to auctions and for dealers, the OTR hauls for dealers some, new autos from the factories and private individuals. We have several O/O's leased to us in the auto and van divisions, the ag division is more seasonal.

Auto hauling is not easy, it may take up to a week sometimes to get the trailer fully loaded or leave and try to load enroute. Pickups can be all over the place (it keeps our dispatch busy just refilling the asprin bottle), then getting someone to meet for delivery, (we don't leave without cash in hand) and delivering someplace we are legal to be. The paperwork is another job in itself, pictures of all vehicles ( you will learn the hard way), releases from owners, drivers having to move the owners belongings just to get in the car to drive it, the car that starts fine to load and now doesn't run when you need to unload (where is the wrecker we called 3 hours ago?) All carry jump boxes. Auctions can be even more fun, theses are the ones the driver is to pick up, wait "What name was that again?" says the guard, "No can't find that paperwork, any other name?" Found them, now the numbers to find them, golly they didn't park them in the right rows, be here for a long time (drivers get their exercise. Dealer wants cars delivered to auction and they are ready,,,,,,,,,,NO still in cleanup shop, they aren't ready, can I get them there in time for the sale.

Now for the big problem,,,,,,,,,insurance. There is only a few insurance companies that will insure autos and son , you will pay for that coverage.

Too may claims in car hauling. That's where that camera comes in handy.

Alot of hard work and headache goes into making that profit.

I have heard many drivers like you before, they see the $$ and never the rest of the story. If you can make it work good for you and go for it. Better to work for someone first as a company driver or O/O leased on. Things have changed alot in 40 some odd years. Going it on your own is no longer an option that is that profitable anymore.

[Preacher]

bigdog, I am fully aware of the pitfalls of car hauling. I do carry a digital camera in my truck and take pictures of any car I'm hauling, as well as filling-out a full condition report. As far as insurance goes, the carrier I'm currently leased to has load insurance that covers cars with a $1000 deductible per vehicle. I have also had insurance quoted to me in the event I desire to get my own authority. I have many connections within the auto biz in St. Louis and Tulsa that would be happy to have me haul for them. Dealers are the bread and butter of the car hauling biz, unless you have a contract with a manufacturer to haul from the factory. Retail hauling for the general public is better money, but like you said is more complicated when it comes to pick-ups and deliveries. However, I did grow-up around auto auctions and am very familiar with their operations.

I never said auto hauling was easy. On the contrary, it is alot of work. But with the extra work comes a better reward. Like I said before in an earlier post, a gentleman I know grossed $240,000 per year with a 9 car hauler in 80,000 miles. That's not bad. I have run a biz plan based on hauling for the dealers that I have contacts with who have said they would let me haul for them and the profit is MUCH higher than hauling general freight or reefer.

[KC]

"Things have changed alot in 40 some odd years. Going it on your own is no longer an option that is that profitable anymore."

You have that right. Things have changed a lot in the last few years. The business plan of yesterday can well be a disaster today. Rates are terrible if you have to use brokers and load boards. They can be good fillers but not to depend on. Fuel is certainly a consideration as well as the cost of insurance which is no little thing. The key to it is customers and run as few miles as you have to.

Empty miles will break you a lot quicker than loaded miles will make you.

[Twmaster]

I realize this is an old thread but I thought I would update my previous post on this topic. I have gone back into the auto hauling business and abandoned expediting. I am making more money now then ever before and am home every night. I can't complain. December was a very good month for me.

Most of my work is dealer/auction based and I'd much rather do that then deal with Joe Public. Well It's late. I've got 24 ex customs/border patrol police cars to finish moving to the auction in the AM.

:)