Making a Living Hauling Cars.

Equipment, Permits, and Insurance

Can you make money hauling cars, and other things on wheels? The answer is yes. however, it is a business and you have to treat it like a business. In this article, we are going to talk about what you need to make it work. Like any business and job, you need the correct tools. Having the correct tools will save you time, money, and make the job more enjoyable. I did this for a year and really enjoyed it. Not having the right truck will limit your income potential and cause you a lot of headaches and costly repairs. Some trucks just will not withstand the workload. So I am telling you this from personal experiences in hopes of helping anyone who is considering this business.

The first thing that you need is the right truck. Anything less will sabotage your efforts. The Dodge 5500 with a diesel engine dual alternators and the heavy-duty front suspension is a great vehicle. The Dodge 3500 one ton is another good choice. You have to be able to haul more than one car at a time to make a profit in this business. Either truck can tow between27, 000 to 30,000 pounds it has the torque and the power that you need when you need it. If you purchase the truck new, you will spend between $42,000.00 and $48,000.00 you can find these trucks in auctions around the country for $23,000.00 or less you just have to shop around, there are some good deals out there. Adding a brush guard to the front of the truck is a smart idea. As much driving as you will be doing, the chances of you hitting a deer or an elk is severely increased. Hitting a large animal can cause you a lot of down time having a brush guard can help minimize the damage. You will also need safety triangles, fire extinguisher, and a first Aid kit.

The next thing you need is a good trailer. You will definitely want a Fifth Wheel or a gooseneck. Personally, I like the fifth wheel I find that it is easier to hook up. There is a wide selection of designs and layouts if you purchase a car hauler that is all you are going to haul so you limit your income potential drastically. However, if you purchase a deck over then you can haul between two or three cars on the deck. A few of the trailer manufacturers will build a platform over the king pin. This allows you to haul three Motorcycles, or two ATV’s, or a couple of Golf Carts increasing income potential.

 Most deck over trailers have what they call a dovetail. This is about a three-foot section at the rear of the trailer bed that is tapered so that you have a lower ground clearance at the rear. This is great for hauling cars. However, it can cause some problems in hauling pallets of product. A few manufacturers offer what is called a pop-up dovetail, which rises once you are loaded so that the deck is flat. This option is well worth the investment

There are many small moms and pop businesses that cannot afford to purchase an entire truckload of product for their inventory, so they purchase a smaller quantity. Most trucking companies like to deal in full truckloads so they charge exorbitant rates for smaller loads. This has made it easier for the small transporter to make money on these deals.

A few pieces of equipment that you are going to want on your trailer, includes a generator, Air Compressor, Marine battery, and a power winch. Other equipment includes air hose an impact wrench, air nozzle for inflating tires. I have picked up cars from insurance salvage yards and they will usually load them for you. Nevertheless, when you get to the receiver and one of the vehicles has a flat tire it is a challenge to unload. Other equipment includes several short pieces of chain two feet long. I always used a threaded chain link to attach the chain to the rub rails of the trailer. I would then hook the end of the ratchet strap to the chain. Attach the other end of the to the ratchet strap to the frame of the car. If your trailer is equipped with floor mounted D rings, you can hook the ratchet strap to it, and avoid using the rub rail. A couple of long chains at least twenty-five feet with hooks on each end. You can never have too much chain or secure a vehicle too much. I always used ratchet straps to tie the vehicle down. Some drivers use chain binders either of these will get the job done. I have seen some drivers use a combination of both. There are many good trailer manufacturers out there that will custom build you a trailer when you tell them what you are using it for they will know what you need. Flat tires on your trailer or truck will happen. Depending on where you are, it could be hours for roadside assistance to reach you. With a generator and air compressor, you can have the tire changed and back on the road in thirty minutes or less. In this business, time is money.

Most of your auto shippers are going to be car enthusiasts who have purchased the car from other individuals and they are restoring them. Sometimes the car does not run. Alternatively, it will be in a place that is hard to get into. This is where the winch and the chain come in handy. Especially when you have to unload one vehicle, so you can load another car because of the delivery locations.

Along with the right equipment, you have to have the right insurance and permits, it is just good business and it is ethical. Insurance is going to be one of your biggest expenses. You want to have at least a million dollars in liability. Depending on the types of vehicles that you are, hauling it is suggested that you carry at least five hundred thousand dollars in cargo insurance. You can save some money here by choosing a higher deductible however you need to have the deductible amount in a separate bank account in the event of a loss.

For example, you have a five thousand dollar deductible for cargo insurance. Loaded on the trailer; you have a 1969 Mustang, a 1976 VW Beatle, and a 1980 Corvette. Somehow or another the Corvette comes loose the back end of the Corvette hits the pavement before you can get stopped. You can see that there is some serious damage done to the undercarriage. The total value of the Corvette is valued at eighteen thousand dollars. You find out that you have seven thousand dollars in damages and you only have three thousand in your bank account. Your insurance company is only going to pay your customer two thousand dollars, you give the customer the three thousand that you have, and this still leaves you two thousand dollars short. This could be very devastating; you have to either to take out another loan, deplete your operating account, or risk a lawsuit by the customer. In addition to the bad word of mouth that you are getting. 

You can also save money on your comprehensive and uninsured motorist insurance by having the higher deductibles again you will want to have the money in the bank to cover the deductible. Otherwise, it could easily put you out of service if you were to hit an elk, a deer, or if someone hit your truck that was uninsured, the repairs could be costly. Check with your insurance carrier, sometimes it makes more sense to pay a little more for the insurance for a lower deductible until so you save up the money to set aside.

To operate a truck and trailer of this size, you will be required to have a commercial driver's license. Many people cringe at the idea of obtaining this. However, it is not that hard to do, and it is well worth it. It is the only way that you can haul enough freight at one time to make a good living. Should you choose to risk it as some drivers do. Keep in mind that a single violation from the department of transportation could put you out of business quickly. Not to mention the possibility of jail time, it just is not worth the risk. You will also need a DOT number and an MC number. I contacted a company by the name of Foley Carrier Services they will be happy to help you set everything up and they stand behind their work. If you do it yourself and make a mistake, it can be costly. One driver I knew was stopped in Indiana he filed his own paperwork and had the wrong GVWR on his permit he received a ticket for over three thousand dollars. It just is not worth it. Foley Carrier Services also offers a wide variety of others services that you will be interested in. You will also be required to keep a logbook, this really is not as hard as it seems and often drivers make a bigger issue than they need to. As I mentioned I did this for a year, I did not have the correct truck, which cost me a lot of money in repairs. I also had a trailer that would only haul one vehicle; on occasion, I would have a motorcycle in the bed of the truck. I could not afford the cargo Insurance. That being said there were a lot of tense moments and the stress was just unbearable. Fortunately, I never lost anybody's vehicle. I was below the weight rating so I never had to enter the DOT scales nor did I keep a log book. Be sure to visit my blog often as I will be posting additional articles about the hotshot freight business.