Car transport services are indispensable to the movement of people from one place to another especially within and between towns, cities and states and sometimes countries.

Although private cars are common, the need for car transport businesses hasn’t diminished but continues to show signs of growth.

Starting A Car Transport Business

This type of business is a viable investment opportunity to consider for interested entrepreneurs.

Here, we’ll show you how to start your own car transport business. Achieving success isn’t at all difficult as long as you follow the right procedure. You’ll find the contents of this article useful in realizing this objective.

Writing Your Business Plan

One of the first steps to be taken in establishing your car transport business has to do with having a detailed plan for it.

Here, different aspects of the business are planned for beforehand. In other words, you’re creating a framework that helps guarantee the success of your car transport business.

Vital sections to be included in your plan are your basic business concept as well as the strategy and specific actions you plan to take in implementing it.

Your plan should also include the service you intend to offer (in this case car transportation) in addition to your competitive advantage.

What more? You’ll need to identify a clear market(s) you’ll be serving with your transport services. This will include your marketing plan. Such a plan will focus on the type of customers, your demographic audience, how you intend to attract and retain clients to make a profit, and the methods to use in doing so.

There needs to be a clear edge that sets you apart from competitors.

Other areas of your plan will include the background of your management team and key employees. Your financing needs must also be fully addressed.

What Are Your Competitors Doing?

Knowing the type of car transport services your competitors are offering as well as how they offer these services is important. It enables you to identify loopholes that need to be fixed to further increase your service efficiency.

Knowing their strengths and weaknesses enables you to position your car transport business for profitability and growth.

Get A Commercial Driving License

Before you apply for a commercial driving license for your car transport business, it’s necessary to be knowledgeable about what’s required. Licensing for commercial drivers is handled by state licensing bureaus.

As such, you’ll need to contact your state’s Department of Motor Vehicles.

These are state-level government agencies saddled with the responsibility of issuing vehicle registration for both commercial and non-commercial cars. You only need to find your state’s licensing bureau to begin the registration process.

This is a legal requirement for all car transport businesses.

Raising The Needed Capital

In most cases, entrepreneurs source for funding for their car transport businesses through a variety of ways including loans from banks as well as investments. You’ll need to decide what options seem more agreeable to you.

The cost of financing your cart transport business will be the biggest expense you’ll have to deal with or manage.

When it comes to paying for your preferred vehicles, you’ll need to clearly understand the options before you. You may decide to go for a financial lease & extended rental agreement. Under this type of agreement, there are no upfront payments. Rather, the use of a car(s) is funded from the revenue realized.

Another option available to you is the installment sale. Under this arrangement, a deposit, representing a small amount relative to the cost of such a car or vehicle is made. Such installments are fixed, with the car being your property after the fixed term.

While calculating the total capital requirements for your car transport business, it’s necessary to include running costs. This ensures the smooth operation of the business until it begins to turn a profit.

Running cost covers, repair, and maintenance, worker wages in addition to fuel or energy costs among other expenses.

Get A Tax ID Number

One of the primary requirements for a car transport business is the tax ID number. The type of tax ID number you get depends on the type of business structure you operate.

For sole proprietorships and corporations of one, your social security number will suffice.

On the other hand, having a large business that employs more than one worker or driver will require obtaining the employer identification number (EIN). This is issued by the Internal Revenue Service (the IRS). Obtaining this number is necessary as it’s used for taxation purposes.


Getting your car transport business ensures not only benefits the business, but also protects your drivers and vehicles. For workers, the worker’s compensation insurance provides compensation for injuries or accidents that results in the process of performing their responsibilities.

Getting The Right Equipment

Equipment for a car transport business is varied. These range from your fleet of cars to office equipment such as fax machines, furniture, printers, and more. Also, certain states set the minimum standards or requirements for equipment a transport business should have.

These may range from the number of cars your fleet should have among other things. It is important to find out what regulations and requirements apply for your transport service. Being able to operate within set guidelines helps you avoid unpleasant experiences such as fines or sanctions relating to breaking such regulations.


Getting the right employees, especially drivers can be a painstaking process. Not everyone that knows how to drive a car should fit in. You’ll need to conduct thorough background checks to help ascertain that such persons are fit. Also, a well-motivated workforce impacts positively on your car transport business.

When hiring your employees, you’ll need to follow set laws guiding the process. Such may include adopting or sticking to non-discriminatory hiring practices among other things.

Choice of A Name

The name you give to your transport business matters a lot. You’ll need to carefully research all possible names, while also checking for name availability to avoid duplication. During business registration, a Secretary of State name search is performed to officially determine the name’s availability.

Consider getting at least three names to ensure or increase the chances of one of them getting approved.

Starting a successful transport business is much easier when the above guidelines are followed. You can carefully actualize your goal while avoiding the common pitfalls resulting from the haphazard implementation of strategies.