Recent world events have raised the price of used cars by a high percentage. If your new business includes connecting used cars in your region with buyers in other states, having a healthy relationship with a professional car shipper can make your tasks easier. However, as a new business owner, you still need to keep costs down.
Ship in the Slow Season
As a general rule, summer is the most expensive time to ship a car. Following that, January is a busy time as well. Shipping space on transport vehicles and train cars is finite. Do make sure you have an accurate quote of the shipping costs before you quote a price to a potential buyer.
Carefully consider the price of the car vs. the price of the transport. If you have found a great school car and the buyer wants it in August for their college student, the shipping cost may be prohibitively high. In such a case, it may make more sense to drive the vehicle part-way to meet up with the buyer and complete the transfer at a mid-point.
One of the biggest benefits of being a small business owner is that you can be flexible. One of the biggest problems in being a small business owner is that you take nearly all the risks on yourself. Do your due diligence and make sure you’ve received payment via wire transfer or other secure means before you set out to meet a buyer.
Go the Distance
Shipping a car under 500 miles costs almost twice as much per mile as shipping one over 1500 miles. To get the most out of your car shipping choices, look for other ways to transport a vehicle under 500 miles.
If driving it is not an option, it may make more sense to tow or haul it yourself in a rental vehicle. Of course, if vehicles and vehicle transport will be the majority of your business, it may make more sense to invest in a truck or SUV with towing capacity for short hauls. A towing dolly can be rented for up to $60 per day, so it may make more sense just to buy one.
The key to starting a small business is to combine activities along the way. If you’ve got a car to deliver one state over, do your best to stop and meet up with other small business owners along the way. You may get the chance to look at other cars or talk to other buyers along your route as well. Taking single trips for a single reason will quickly eat up all your time and a lot of your funds.
Lighten the Vehicle
The more a vehicle weighs, the more it will cost to ship. You will likely be required to load it with no more than a quarter tank of fuel. Leave the spare or the donut, as well as the jack. After that, do your best to pull as much weight out of the vehicle as possible.
Consider also lightening the payment. If your car business is in the early stages and you have a classic car to ship, it may make sense to ship it covered. The cost will be higher, but you can be confident that it will arrive unblemished. Even if the buyer will ultimately cover this cost, you will need to be able to pay for the shipping upfront.
Look for a 0% APR credit card with a long payout window, preferably with points or cash back. If you’re bootstrapping your business, you can cover the shipping expense and pay the minimum until you receive your full payout. When you receive your payout for the car, you can wipe out the shipping debt.
Keep an eye on your mailbox. One of the best benefits of paying off a card and leaving it open is that you will start to get more offers for better cards. Look for those with a welcome bonus so you can apply those bonuses against future business costs.
Confirm the Condition of the Car
Companies that ship cars must be very careful about leaks and drips. If you’re not sure that the vehicle you need to ship is leak-free, take it out for a nice long test drive and park it overnight on a clean piece of cardboard or a clean white sheet. When the engine cools down, look for drips in the morning.
Even a small oil leak or coolant drip can add to your shipping costs. It may also make it hard for the car shipper to provide you with services again. If you can’t confirm that a car will be leak-free during the course of the shipment, it may mean that you have to drain the fluids and ship it as a non-drivable car.
It is possible to ship non-drivable cars, but the cost will be higher. You may also need to have a mechanic meet the vehicle at the other end to refill fluids and get the vehicle back up and running. If you know you’re going to ship a vehicle to the new owner, don’t buy it without an overnight test drive.
Be Willing to Meet the Shipper
Your car shipper will generally charge less if you can meet them in a major transport hub. Shipping by train will also require you to meet a particular schedule or leave the vehicle in a holding lot.
Holding lots are generally secured by a fence. There may also be security on-site. If you’re just starting your business and want to be absolutely sure that your vehicle gets loaded onto that truck or that train car, adjust your schedule so you can meet the shipper and at least witness the loading yourself.
In today’s economy, having a side hustle or a side business is a great way to build your financial future. If you have an eye for cars that can turn a profit, building a strong relationship with a professional car shipper can help you expand your reach.
