Detailed On How To Start A Car Transport Business

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Free Know How On How To Start A Car Transport Business

Over the years, numerous people and organizations have asked us "how to start a car transport business" and what are the requirements to operate legitimately. This is why we are pleased to write to those, one step at a time on how to start your own car transport brokerage business and we promise to be very helpful to those entrepreneurs who want to participate in the car transportation industry. So let's get started!

Step By Step On Opening Your Car Transport Business

How To Start A Car Transport Business Made Easy!

So to get started, we suggest you follow our knowledgeable every step process. It will also provide an approximate cost of how much it would cost to set up your car transport business, what is required, and the tools to achieve it. After reading our every step on creating your own car transport business, we recommend going over the FAQ section at the bottom of this page.

how to start a car transport business

Read Time: 20 minutes
Estimated Startup Cost: USD 3000

What Is Needed To Start A Car Transport Business?

- Legal Business
- Licensing and Insurance
- Bank Account
- Merchant Account
- Business Website
- Leads

Required Tools:

- Computer
- High Speed Internet Connection
- CRM ( Customer Relationship Management) Software
- Car Transport Board
- Marketing Software
- Phone System

How To Start A Car Transport Business Steps

Step 1 : It all starts with registering a new business in your state.

To start a car transport business, you need to be legally established and registered in the state of operation.

Nowadays, it is very easy to register a new business since most states allow online filing where you can start the registration process anytime.

Here are a few states online filing portals for new businesses:

Step 2 : Open a bank account for the new business.

Once your company has been successfully registered and officially incorporated, you will need to open a bank account for it. Like this, you will be able to manage the business cash flow, such as payment to suppliers and receiving payments from your clients.

Here are the best banking institutions for car transport companies:

Note: When opening a new business bank account you will require an EIN number issued the IRS. You can easily get one here.

You will also need a merchant account to process your client's credit cards. It is the easiest and simplest way to get paid for all phone orders made. Some of the banks mentioned before can also supply your business with a digital merchant account, or you can also find other options browsing the internet for merchant accounts for businesses.

Step 3 : Apply for authority to operate through the department of transportation.

To start guiding your new business in the course of car transportation, you need to apply for a license that allows your business to operate nationwide, better known as MC Number.

This authority is mandatory for every car transport brokerage. It gives us access to transport federally-regulated commodities owned others or arranging for their transport, (for a fee or other compensation, in interstate commerce).

To start the licensing application on the department of transportation website click here.

The estimated approval time frame for the license (MC) to be activated can take five to nine weeks, as long as we follow the instructions on step 4.

Step 4 : Getting bonded and compliance

After filing for the MC number, the department of transportation requires a trust fund bond for your business, better known as BMC-84 or BMC-85.

In order for the license to be granted, you must have filed the bond. If not filed, then the license will not go active, and therefore, you will not be able to operate your car transport business.

Note: This process can be done three to five weeks after applying for the license.

You will also need to file the BOC-3, which is having a processing agent for every state as a requirement from FMCSA. There are several agencies that offer this type of service for an average rate of $40, a one-time fee.

Note: After submitting your license application, many of these companies will contact you directly to offer their services, so do not worry.

Step 5 : Build up a nice looking website for your business

We are in the digital era, and if you are looking to grow your car transport business, plus be recognized in your area or nationwide, it is very important to create a great looking website for your business. You are free to customize the website with different features, services, and information regarding the services offered.

Here are a few hosting sites where you can purchase domains, corporate emails, and website builders:

Step 6 : Getting setup with a CRM and signing up to a national car transport board

If you have reached this step is, because you are almost ready to start your car transport business operation and you have learned how to start a car transport business following our guideline. Excellent job!

The car transport business is very massive in the United States. Thousands of individuals and businesses go online daily to inquire about shipping a vehicle from one place to another. The greatness of the car transport market is that y'all can work independently as a one-person corporation, or can also set up a large-scale operation, that is, hiring more employees to handle a medium or a large number of clients.

Having said that, you will need an online CRM to manage the entire database, such as customers, car carriers, lead providers, payments, emails, among other features offered within the different software out there.

These are the most popular software in the car transport business:

  • jTracker: Is web-based car shipping software with versions for both Auto Transport Brokers and Carriers.
  • Bats: Is CRM for the car transport brokers. BATS helps you grow your business automating, standardizing, and optimizing your operation.
  • Pro Abd: Is a software to help auto transport brokers run their business and manage customers.

On the other hand, many of you may wonder, how do I contact car carriers across the country to pick up the cars that were recently booked?

Remember that car transport brokers earn a commission for each transport arranged, but the ones really shipping the cars from one city to another are the car carriers.

You will need to subscribe to a national board of car carriers, where they will have access to all your orders as they come in.

The largest car transport board in the market is Central Dispatch. To get a free month use our referral code: ZAHLE.

Step 7 : Start buying leads and begin operation

Summarizing all the above, we are ready to start our operation. We have a company incorporated in your state, license to transport cars, insurance, and liability, bank account, merchant account, software to manage customers, and access to the national board of car transporters.

What is missing? Most importantly, customers!

You need to start buying leads! What are the leads? Those are people that visit online portals like ours (ShipCar.org) and request free shipping quotes. If you are enrolled in the program, then your business will get access to the customer's name, phone number, email, vehicle information, and coming from - and - going to information. From this point forward is up to your sales force to get as many deals possible.

Here are some great car transport lead providers:

Bonus : Learn how we can help you start your car transport business.

  • Adding your business to our car transport companies directory will get you thousands of impressions from potential shippers, for free.
  • Check our phone consulting packages, and speak to one of our car transport experts. We can guide you in the right direction!

How To Start A Car Transport Business FAQ

The car transport industry is a multi-billion dollar industry in the USA. 5 out of 100 Americans transport their car from one state to another every year. Plus, the fact that you can work from home or a small office from anywhere.

If you have any questions on how to start a car transport business, you can use the contact form at the bottom of the page.

How To Start A Car Transport Business Consulting Packages

If you have more questions or concerns and want to speak to one of our experts, we offer consulting packages from 30 minutes to 2 hours of telephone guidance.

Consultancy Fees:

30 Minutes: $100 USD

1 Hour: $170 USD

2 Hours: $300 USD

To schedule a consultation fill out the form below.

The number of leads you can handle depends on how many hours you intend to work per day. If you plan to work full time, we recommend handling 50 to 100 leads per day. Now, if you have a sales team, multiple that x the amount of available agents.

This depends on many factors, such as the number of sales you make and the time you have been in business. A small firm can earn anywhere from $40,000 to $100,000 per year. A medium or large business can earn from $150,000 to $1,000,000+ million per year.

how to start a car transport business

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