Trucking: Car Hauling, engine warranty, local trucking

Question
Bob,

My husband is a truck driver with a local trucking company in Virginia, however he is interested in starting a car hauling business.  We would like to know how to begin and possibly a step by step process in the licence's that need to be purchased, insurance, IFTA stickers etc...

Answer
Hi Renee.

The simple answer is to contact your state's Department of Transportation (DOT) office.  They can talk you through everything (or should be able to).  If he plans to drive out of Virginia, you can go to sites like www.dotauthority.com, www.authoritiesdirect.com. or www.iccauthority.com.  Depending on where he runs, it will depend on what he needs.  For starters, he'll need to get his DOT/MC numbers and Fuel Tax.

Next comes insurance.  You want to make sure you have enough in the car hauling business.  Check prices, but here are some of the top companies...

www.progressivecommercial.com
www.insuremyrig.com
www.truckinsure.com
www.cooperinsurance.org
www.gwccnet.com
www.sentry.com

The biggest piece of advise that I can give you is buy a truck with an engine warranty!  Most new owner-operators go out of business because of the truck breaking down and there is no money for repairs.  You could be talking about $10K for an engine rebuild.  You can pay thousands just to fix the a/c.  You want to have a warranty to help out in case something happens.  I've heard guys say "Well, the truck only has 400,000 miles, it won't need a rebuild until 1,000,000" or whatever.  Don't count on it!  I once drove a brand new International (4 miles on it) that broke down.  I was delivering it for a company and whatever happened, it was major.  So a used truck is a gamble, no matter what age, mileage or condition it's in.  Get an engine warranty!

Next, there is numerous software geared (no pun intended) towards trucking.  This can greatly help you run the business by keeping track of all the money! Look into that.

Finally, you can find loads by old fashioned sales or calling brokers.  In car hauling, auto auctions are a great source of new accounts.  Major, new car dealers mostly have contracts, and they're hard to get into, but swing by anyway and give a sales pitch.  Used car dealers will be your main customers, I would guess.  This is because you can pick up numerous cars at an auctions and deliver them to one location.  They don't have deals with manufacturers on shipping like the new guys, either.  Private individuals can be hard.  The time spent for picking up and delivering one vehicle at a time may not be profitable enough.

Finally, join www.ooida.com.  They have been helping Independent Truckers for decades and are a great source of information.

Good luck in your new adventure!

Bob Stephens