Vehicle transportation does not always have to involve subjecting transported vehicles to increased mileage. This is especially true when it concerns transportation over very long distances. The services of auto transport companies are one of the reasons why this is possible. Of course, there are several advantages involved, including:
- Environmental Benefits
- Reduced Traffic
- Safety & Security
- Reduced Stress & Hassle
- Cost Efficiency
- Time Efficiency
- Vehicle Preservation
- Convenience
- Flexibility
These and many more are what consumers who use auto transportation services stand to gain. By the way, you can click here for information on the history of these services.
This largely explains why some parties are interested in investing in the auto transportation industry. Well, such people need to understand a couple of things, some of which will be discussed here. So, keep reading to stay informed.
Industry Overview
Service providers that offer auto transportation services are known by several terms. Besides the use of the term auto transporters, other terms used include vehicle haulers and car carriers. Essentially, their services revolve around the shipping of vehicles from one end to another, mostly across distant areas.
Clientele for Auto Transport Companies
A large number of private individuals use these services for several reasons. For example, snowbirds are a prime example of such consumers.
However, there are several other common categories of clients that use the services of vehicle haulers. Some of them include:
- Auto Auction Houses
- Car Dealerships
- Military Personnel
- Rental Car Companies
- Car Manufacturers
- Companies that Relocate Employees
- Collector & Classic Car Owners
- Online Car Buyers
By the way, some companies in this line of work have their services tailored to suit certain clients more than others. So, this is something that should be taken into consideration when choosing these companies.
Auto Transportation Options
Several transportation options exist. The available options are:
- Road – Further broken down into open and enclosed transport
- Rail
- Sea Freight
- Air Transport
The choice of transportation option depends on several factors. The factors in question include:
- Preferences
- Location
- Cost
- Vehicle Type
- Weather & Environmental Consideration
- Time Sensitivity
- Service Availability
- Special Requirement
However, some of these factors are more influential than others. For example, certain distances cannot be covered or completely covered via road/rail. As a result, complete road car carrier services are not possible in such cases.
Hawaii is a prime example as there is no road connecting the mainland US to it. As a result, either air or sea freight option is resorted to at some point or entirely.
Cost is also a major factor. For example, every state in the country and even multiple cities in certain states have airports and even airstrips. As a result, air vehicle transport offers that accessibility edge. This is besides its quick delivery pace.
Be that as it may, it is the least common option, and this is down to its cost. As a result, Becoming an Auto Transporter entails deciding on services that you plan on offering. This is considering that many companies do not offer air vehicle transportation services considering its low patronage, because of its cost.
By the way, the cheapest car carrier service option and the most patronized is road vehicle transportation. More specifically, it is the open transport option as there is also the enclosed transport option; which is more expensive but discreet, safer, and premium.
Brokerage Service
The aforementioned part has only addressed becoming involved from the stance of an auto transporter. Well, you should also know that there is the option of getting involved in the capacity of a broker.
This implies that your company would not be directly offering the service to clients. Rather, it would be about connecting clients with capable and available car carrier service providers.
By the way, players that act in this capacity need to do a lot of networking as their success in the industry largely depends on it. For example, using brokerage services suggests that clients would be paying brokerage fees besides the actual cost of the required service. This can seem like a waste of resources, at the surface level considering that this fee would not be applicable if clients can directly contact service providers.
Therefore, successful networking suggests being able to get these services at a very subsidized rate. This is so that adding brokerage markups would not make clients pay exorbitant amounts compared to the market price.
By the way, there are players in the industry that act in both capacities – direct service provider and brokerage service provider. More often than not, the brokerage side of their operations sets in when clients require services to routes that they do not ply.
So, they consult alternatives and act in the capacity of brokers. It might also interest you to know that the concept of brokering plays out in other industries besides this one. For a broader understanding of what brokerage implies, regardless of the facet, you can visit: https://www.lawinsider.com/.
Conclusion
There is so much to comprehend in the spirit of being a part of the auto transportation industry or simply understanding how it works. However, some industry details are more basic than others, which is why this article has shed light on some of these basics. People who intend to get into the industry or simply understand how it works should therefore pay attention to these details.