Car Hauling fo' $

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To deliver trailers , I think you need some kind of a contract with the dealer or the manufacturer. It would be best if you lived near the pickup or drop off point. Most guys that I've heard about haul for the manufacturer. Call around and ask. Also , you will only be paid for the mileage one way. It will have to cover driving both ways.

 

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Ben/Bob,

That one-way hauling dilemma is the biggest hangup for me; trying to figure out how to guarantee a load going and coming.

I've talked to my accountant and she tells me that, figuring the cost of a $40,000 truck, with a 50% depreciation over three years, plus the cost of fuel (@ $2/gal. ), and routine maintenance expenses... 55¢ per mile would be a "conservative" cost base allowance. That's just money that it will cost me to operate the truck and remain in the "same shape" I began in...

Since I'd be starting with a '97 model truck (already largely "depreciated") my cost per mile would be a little less. Although, for tax purposes, the truck would begin it's depreciation life all over again, starting with a "new" (for business purposes) value of, say, $28,000. I'm told, though, that the minimum cost per operating mile would be about 50¢.

And that figure doesn't allow for other, direct trip-related expenses, obviously, such as meals, lodging, toll road/bridges fees. I don't know how to assess (on a per mile basis) what those costs might amount to. Then there are the normal costs associated with doing business, like general office overhead (gotta figure something for that phone/fax line, business forms, company checking account, professional fees/licenses, insurance).

I'm guessing that, when all is said and done, I'd have a minimum of $1. 00 per mile in "fixed costs," and that'd be figuring a "Motel 6"/McDonalds" kind of existence on the road, say $60 per driving day for meals and lodging.

Somebody mentioned, earlier, being paid $2 per loaded mile for hauling. If you were only going to gross (profit before taxes) $1 per mile loaded, you'd have to drive EVERY mile attached to something, or you'd end up either losing money, or driving for minimum wage.

Say you made a 1000 mile roundtrip to drop off a 5th wheel camper at a dealership. The dealer pays you $500 on delivery. You spend the night at "Shady Hollow" Motel 6 and drive home the next morning. You're out of pocket $60 for meals and hotel, plus $160 on fuel ($2/gal. -- 12 mpg). So, you got maybe $280 in your jeans for 20 hours behind the wheel. So far, you've "grossed" $14 an hour, right? But, you gotta remember to figure your vehicle depreciation and maintenance costs, plus your general overhead, too.

I don't see how it'd be economically feasible, at $2. 00 per mile, unless you were running, loaded, all the time. And, even then, it seems like you'd be working pretty much just to buy a new truck every three years when your current one was worn slap out...

I think the real "money" (real "opportunity") would be in hauling wealthy retirees personal vehicles, maybe in a nice covered trailer. Either that, or really nice auction/show vehicles like exotic sports cars, motorcycles, or antique cars -- something like that. Hard to see how a car dealership or camper/5th wheel manufacturer is going to allow you to make any money... Seems like they'd be out to work you and your truck to death for peanuts.

 

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Sasquatch, just got back from a 2,500 mile trip to the Rockies in my truck and read your topic with interest. Back in 97 at age 45, I took advantage of a buy out from my company and have been living off the land since then. I've looked really hard at hot-shotting as a way to use "THE TRUCK" to supplement the famely income, but so far my numbers look a lot like yours. A local (45 miles away) HVAC manufacture pays $1. 25 per loaded mile to deliver equiptment in the lower 48, that's one way. Requires a 40' flat bed trailer. And to be legal a CDL is required, along with the approprate DOT numbers on the truck door, gotta get your own athority, or run under someone else's, have lot's of insurance (can be expensive as you know). And from what I understand, if you don't have a sleeper on your truck, you've got to show hotel reciepts if asked when you pull into a check station.

To cut to the bottom line, I haven't been able to figure out how to make it work. Some do and more power to em. I'd sure like to give something like you're considering a try if it's possible to make a little additional money after all the intangibles are factored in.

My concern is this line of work, in my case at least, would be like the old cowboy that won a million bucks, when asked what he was gonna do with all that money, replied "Run cows till it's all gone".

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"95" 3500, 4WHD, Ext cab. SLT, 5 spd, 4. 10 LSD, Rancho 9000's PacBrake, running boards, Mopar mud flaps, Isspro EGT, 50lb. boost, TST #8, 215HP injectors,no cat, muff or turbo ring.

 

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Sas... . You got that right on the money, I was getting about $1. 35 a loaded mile. I could only haul one way, when diesel went over $1. 10 and stayed there I had to quit. That was with a "BIG RIG". Don't forget the fixed expenses. Like insurance, they cost the same if you are sitting or driving 26 hours a day.

 

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I hope this link works. It is a BBS similar to the TDR for truckers/trucking.
http://www.truck.net/cgi-bin/bbs/forumdisplay. cgi?action=topics&forum=Newbies+(Interactive)&number=3

 

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Sas, I dont know if this helps any, but the going rate to Florida from New Jersey is $500. 00 per car. I'm guessing it's about 1300 miles.
In the county I live in, there are thousands of Sr citizens. I dont think anyone is allowed in here unless theyre 75 anymore. #ad

HTH with your decision.

 

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There's a way to work our trucks that makes us money and is of service, too. I'm convinced of it.

Here's the deal. Our society is aging, rapidly. I've made that point a couple of times, already, I know. But, I want to emphasize how FAST that change is taking place. Listen to the politicians this election cycle. What are they bleating about, folks? Free prescription drugs "for the elderly," "fixing Social Security," "reforming Medicare!" And on, and on...

Freebies and entitlements are being directed (once again) at the biggest demographic: seniors, and about-to-be seniors. The way that definition has been "defined down" by our local merchants and bankers, I'm now a senior, my-own-self! YEE-HAW! (where do I line up for my "goodies?") #ad
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Younger Americans are turned off and apathetic about politics, for a darned good reason: for starters, politicians aren't talking to them and, with the exception of Bush's efforts to privatize a tiny sliver of Social Security, nothing's being proposed that will benefit them. Politicians are pandering to seniors because there are lots of 'em, they vote, and they have most of the money.

So, services directed at seniors are going to continue to prosper. They have to. More and more seniors are also becoming "computer savvy. " My eighty-something-year-old mother just got herself an apple "I-Book" and is persecuting me with a steady diet of email.

Imagine a company/website called "Silver Bullet Car Transport" ("silver" for seniors, get it? Raise your hand if you're bowled over by my originality!) There is a manageable demand for auto-transport right now. But, as the "boomer" bulge ages, more and more folks will be electing to have their cars shipped to Florida (or, wherever) for them, instead of making that long drive. My inlaws are a case in point: a couple in their late seventies who "winter" in Florida. For years they've followed one another "caravan-style" to their Vero Beach home. Last year she decided she didn't want to drive by herself anymore. Enter "Mr. Hauler," charging $450 for the Florida run.

My prediction is that hauling prices will rise (initially) as demand rises. This is an industry that is bound to do better in the short term, before the supply of haulers responds to the increased demand from seniors. Ultimately, the bigger transport companies will see a market worthy of their interest, and they will provide mass-targeted, economical transport (the "Home Depot" approach), featuring the huge car haulers we see making deliveries at dealerships.

I think the next ten years will see the best opportunity for would-be, small-time haulers. Good marketing skills are essential, of course. Reaching the "target audience" is the challenge.

 

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Moparguy,

I talked to a local hauler, yesterday. I met with him for over an hour at his "depot" (2 acre commercial lot) just north of Atlanta.

He has a small fleet of haulers which includes three "medium duty" diesel trucks. I should have paid more attention to their make and model type, but was too distracted by his job offers. They were, though, sort of a "compromise" between our light-duty trucks and the big eighteen wheelers. They looked like serious trucks (not pickups) but, were not the typical, over-the-road tractors I'm used to seeing. One had a caterpillar engine, another had a B 5. 9 Cummins just like ours.

Anyway, this guy couldn't have been nicer. He answered all my questions, in between trying to convince me to run his business and split the profits with him; he's also (on the "other acre") running a used car lot which is where he's making "most of his money. " He said, "I've got more than I can say grace over!" I told him I appreciated the thought, but wasn't looking for that sort of aggravation! #ad


Anyway, the guy has a beautiful enclosed trailer that is 47' long from the hitch that mounts to the "hide-a-ball" in the bed of my truck to the end of the trailer. I think the brand is "Featherlight" and is manufactured in North Carolina, somewhere. He paid $22,000 for it two years ago. He said, "This thing has been sitting here, idle, for over a year. I can't find anyone I trust to drive it. " He offered to split the profits that I made if I could find a market for hauling with it. I'm a little intimidated by the size of this rig, though -- it'd be 64' from the front of my truck to the rear of the trailer. That's within 5' or so of "big rig" territory, and I'd be dealing with issues like where to park it at night, on the road, and so on...

Anyway, this guy also provides transport services with his other trailers for local dealers. He gets $45 per car for local hauling around town. His inventory of trailers includes a two car flat bed, a 5-car "wedge," and a three car wedge. His drivers do have to maintain log-books and they also have their "Class-A" CDLs. What's the difference between a "Class-A," and a "Class-B," anybody know. . ?

He told me he pays his drivers one third of what he collects from every transport job, and pockets two thirds. Plus, he pays expenses (fuel) and reimburses them for any job-related mishaps (flat tire/blowout). Some jobs he makes money, some he loses money. He related this with a matter-of-fact shoulder-shrug. I asked him how much he was making and he said, "I'm grossing 24,000 per month. " I said, "WoW!" Then he responded, ". . but my expenses are running about $20,000 per month," and cracked-up laughing.

Every one of his trailers had cracks in the welds and showed serious signs of wear-and-tear. None of them was over two years old. He told me that the problem with trailer construction was that they had to be very light in order to come in under the DOT hauling "ceiling" that would double his cost of doing business and paperwork. The welds on the trailers looked amateurish, too. He said, "I'm threatening to take this company (another North Carolina manufacturer... ) to court if they don't come replace these trailers with new ones, which they've promised to do under warranty. "

All in all, the guy seemed hassled and desperate (hey, he considered ME!) for qualified drivers. His drivers put in a lot of hours on the road and probably make $35,000 -- $40,000 per year. Nothing to write home about, that's for sure.

He told me that the enclosed trailer could be driven, legally, without any markings or special certifications. Maybe not even a CDL for the driver. Kind of like the guy who drives 5th Wheel RVs from manufacturers to dealer lots -- I don't know if this is true or not. It looks sort of like an elongated horse trailer from the outside. Would the DOT have licensing requirements for this type of hauling, too? I don't know...

I'm not wild about the prospect of lots of "red-tape," log-book-maintenance type supervision. I'd want to haul just under that "threshold," if I could.

 

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Sas, you should find out if he handles the "fuel reporting" to each state. This was a major PITA for me. If you dont do it right, or on time, you get fines etc.
Tolls can be a big issue depending on where you go. It can cost over $100. 00 to go to NYC !! I dont want to go there for free!!
If youre getting $450. 00 from where you are (Ga?) to Fla, I'd jump on that.
Good luck

 

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Well Sas, you've got my attention. I have a customer service background and have had a vote in several new product/service type decisions. I know from reading your comments that you also have experiance in this area as well. In fact, you likely had the only vote. A mistake often made is to assume we know what others want and need without doing the necessary homework.

So, while I'm not questioning that there is a market here, or opportunity, how do we qualify this market. I don't know when the latest census results will be available, but this could serve as a starting point for the necessary research needed to see if our home area has the necessary concentration of potential customers (age and income/net worth qualified) needed to make the trailer/other investments, feasiable.

I also agree that marketing skills are essential, word of mouth is prehaps the best marketing tool there is. Of course it has to be good words from the customer's mouth. If we don't have older friends we can help with their auto transport needs, then getting the word out in retirement type area's near our homes would be a starting point. Flyers, or prehaps a speaking opportunity at the monthly retirement village meeting come to mind as low cost first efforts.

I see an opportunity to tell a group of retiries about things to be aware of when having a vehicle shipped; making sure the carrier has appropriate insurance, dependable equiptment, enclosed trailers, reputable employees, local referances. Of course our little one man company would have all those, and we would leave a supply of business cards for those that may be interested.

And of course, all the above could just be my big company background making itself known. Sometimes, when you know you're right, you, as the ad says, "Just Do It", and figure it out as you go.

 

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Sas. . I'm guessing here , but as I remember it: If you own the truck and trailer an the contents then you do not need the CDL. But, if you even have a 1/2 ton hauling 100 lb cargo that belongs to someone else, you need a CDL. The diff in class "A" and "B" is the "B" is for taxi and other little stuff, buses need a "A". The "A" is for cargo hauling and bigger vehicles.

Another site by a "Truck driver"
http://www.geocities.com/akashaTrucking/

click on "business plan"

 

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Well, I just found my Commerical Driver License Manual, version 2. 0, page 1-1;
You must have a CDL to operate:

A single vehicle with a gross vehicle weight rating (GVWR) of more than 26,000 pounds.

A trailer with a GVWR of more than 10,000 pounds if the combined weight rating is more than 26,000 pounds.

A vehicle designed to transport more than 15 persons, (including the driver).

Any size vehicle which requires hazardous materials placards.

Your state may require additional definitions of CMVs.

On the door post sticker, drivers door, the GVWR on my truck is 11,000 pounds, so OK there. In the owners manual, the GCWR is 18,000 pounds, so OK there. If I stay within DCs recommendations then, no CDL required, or so it would seem.

However, using the car dealers 47' trailer as an example, if it weighs 5k, then two cars at 4k each, plus truck at 7. 5k puts me at 20,500 pounds. Under the CDL requirement, but over the manufactures GCVR In the event of a accident, you could find that you insurance would not provide coverage due to exceeding DCs ratings.

On page 1-2 under other rules;

No one can drive a commerical motor vehicle without a CDL. A court may fine you up $5,000 or put you in jail for breaking this rule.

That's what it says, don't know what the real world interputation is. I do suspect that a hostile attorney could eat our lunch in a law-suite situation if we hauled for pay, without a CDL.

I tried to take the CDL test a few months ago, was told that I couldn't use my 3500 for the test since it didn't have a GVWR over 26,000 pounds, or a recommended GCVR over 26,000 pounds. Crazy since if pulling commerically, I'm expected to have a CDL, but that's what I was told by State Police Sargent doing the testing.

 

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Moparguy,

You are so right about "assumptions," and the trouble they can get you into...

I was making a "seat-of-the-pants" assessment, here, regarding the demographics and the conclusion that demands for all sorts of senior-directed services would be on the rise.

Corporations have a ready avenue for test-marketing their ideas. So do, evidently, politicians with their "trial balloons"; Clinton has made "focus-grouping" an art form and household term. (... forgive the political commentary... I'm hoping this compulsion will subside after Nov. 7, or the lobotomy, whichever comes first... )

I don't know how we can put the theory to the test, without, as you suggested, passing out business cards and giving things a try. Another suggestion would be to place ads in local resort/retirement community papers for hauling services.

My "marketing" experience consists of trying to market my little company, successfully, to remodeling clientele. I concluded that there are those who will pay a premium for superior service, and those who won't. Finding the folks with "carriage trade" expectations AND wallets is the secret, I guess. I'm reminded of the "personal trainers" in Hollyweird, "LA-LA Land," who are making obscene amounts of money making "house-calls," and getting past-their-prime "celebrities" into shape. I read about this industry and think, "Sheeze, they could just walk around the block a couple of times every day, cut down on the bonbons, and save thousands!" #ad
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Anyway, "service" would have to include immaculate equipment (to inspire confidence) and a flawless delivery record. I don't know about the enclosed trailer requirement, though. Unless you could charge a pretty hefty surcharge for that sort of transport. People who want their vehicles to arrive bug-free and immaculate, should be willing to pay a premium. I even thought about combining a further service with delivery. Maybe like a "delivery/detailing" service. $450 delivered to Vero Beach (or, wherever), $700 delivered serviced (fluids changed/pressures checked/detailed, fresh flower in the "bud vase"... ), ready to go for the season -- winter or summer service. Anything to distinguish my company from what every other "hauler" would be offering.

 

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Sasquatch - I'm on a mailing list for old Willys trucks, wagons and jeeps. With the internet and ebay etc people are buying and selling all over the place and need vehicles transported. There's a guy named Chuck on our list that goes back and forth across county with his truck and trailer making deliveries, maybe he can tell you if it's worthwhile. His email address is cmbtow@pnv.net. He has a website somewhere also, don't know the url.

 

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SAS, just re-registered and am finally able to post. I have read with interest this thread and wanted to pass on to you that in the first generation section, there is a member, with a 92 D350 regular cab, that has his own hotshot business. He pulls a 35 foot (+/-) goose neck and has 48 state authority. I'll try and find his name and pass on to you. Also, you might want to check the Jones Motor freight web site as they are the parent company of two hot shot companies (forget the names). There is also a site called expediters online that has a wealth of information. Hope this helps.

John

 

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It may help if a bunch of us went together, I have a car hauler trailer, only 16 foot. but hey if we put an add in Motorhome magazine and someone needs a haul from the Missouri area I might give it a try.

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96 CC 4X4 2500 SLT AUTO transmission, PrimeLoc, ISSPRO EGT Boost transmission Temp, GUTTED CAT, 150,000+ Miles still goin' strong, Lots of Ham Radio gear, NO IGNITION NOISE!!! Love my diesel!!!

 

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I run several Hotshots. A 92 D-350, a 2000 3500 And a 2000 FL-70 I can give you some great contacts and info if you want to e-mail me. I run 3,500 miles per week on my 92 D-350 alone. One thing to ponder is a truck registered has to run IRP tags & have a sleeper bearth. No more sleeping in the cab. up to $ 500. 00 fine. I avgerage at least $ 1. 20 per mile I only haul freight. Only had a few car loads. Several car haulers I've spoke with average p to 1. 95 per mile PER car Feel free to e-mail or call Mike 352-895-1429

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92 Std cab. LE. 215 P-pump reman cummins motor. 5-speed, 3. 54, 105 gal Aux tank in bed. Borgeson shaft, Banks Power pack. 12cm Hot end housing w/wastegate. 4" Exh, Pyro & boost guage, oil temp guage. E-brake. Galaxy DX99V, Used as a Hotshot/express Reg. at 36,000 lbs in 48 states. Custom built DOT approved Sleeper unit. & Texas Star 400 http://hometown. aol.com/hotshothauler/myhomepage/business.html 2000, 3500 being setup for Hotshot work as we speak. 250 miles todate

 

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I hauled cars... race cars to the track, stayed all weekend, and hauled them home. Normal charge was 50cents/mile, plus track-side services. I looked into forming a company, getting insurance and being "legit", but the insurance made operating at $1. 00/mile a losing battle!... and that was back when diesel was $. 85!!! I had to make agreements with the auto owners to carry their own ins. and not to sue me should something happen.

 

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David & Mike, Nice rigging.

I also sent SAS info on "Escort" duty. That would be a nice way to go for me on weekends, Do the I40 TX to AZ, or the I25 TX to CO routes (I10 too far south to be worth it att). Was researching it for NM and dont think the up-front costs for equiment/certification would be "recoupable" on the weekend running. A weekend "Hot-Shot" would be nicer to run (lower initial equipment costs but then the Insurance/tags/etc would almost equal the escort costs) so damed if I do and damed if I dont so I guess att I wont.

\\BF//