When you’re running an automotive dealership, constant shipping delays and unnecessary logistics complications can translate to thousands of dollars in lost profits. Other transportation challenges, such as in-transit damages and unpredictable delivery times, can also lead to missed sales and dissatisfied customers, damaging your dealership’s reputation. Dealer transport services can provide a reliable, cost-effective solution to manage your inventory and keep your customers happy.
This comprehensive guide will provide an overview of car dealership transport services, including:
- What these companies are and how they work
- Who can benefit from dealer transportation services
- Different car shipping methods and their benefits
- What types of cars do dealerships move
- Pros and cons of car dealership shipping
- Answers to other common questions about dealership auto transport
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What are car dealer transport services?
Think of a car dealer transportation company as a delivery service for vehicles. These companies transport cars for dealerships, overseeing the pick-up, tracking, and delivery of vehicles. Car dealerships use transport companies for various services, such as replenishing their inventories, moving cars to different lots, or delivering vehicles to customers. These service providers are also known as vehicle logistics or vehicle fleet management companies.
A dealership’s inventory volume can make transporting vehicles a time-consuming and costly process. Working with a dealer transport company can take the stress and hassle out of car shipping.
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Who needs car dealership transport services?
Dealers need to keep vehicles on their lots to sell to customers. But many people never think twice about the process of getting vehicles from manufacturing plants onto dealership lots. In reality, car dealer shipping involves planning and precision. When done well, this process benefits manufacturers and dealerships, but it also has impacts for car buyers.
Car dealerships
Clearly, auto dealers have a vested interest in moving vehicles onto their lots. Without new cars, inventories become stagnant and sales decrease. Dealerships receive new vehicles from manufacturers, distribution facilities, and auctions. Transport providers offer an efficient, reliable way to move cars from those locations to dealerships.
Besides keeping their inventories stocked, dealers may need to transport vehicles for these reasons:
- Dealership trades: Dealerships often trade vehicles to accommodate customers’ preferences or diversify their inventories.
- Customer deliveries: More customers now shop online for vehicles, and dealerships need to deliver those cars to them.
- Inventory relocation: Some dealerships have multiple lots, so they may transport vehicles between locations to improve sales.
Auto manufacturers
Auto manufacturers, like Honda and Ford, transport their new vehicles to dealerships through both domestic car shipping and international transport. Some carmakers have plants in the United States, enabling them to ship vehicles by truck. Many vehicles, however, come to the United States from abroad.
The United States is the largest importer of cars in the world, bringing in vehicles from Mexico, Japan, Canada, South Korea, and Germany, among other countries. As you might expect, shipping vehicles overseas involves more logistics than domestic transportation. These vehicles generally travel by cargo ships to the United States, where they continue to their final destinations via rail or truck transportation.
Car buyers
Many car buyers want to know if dealerships can ship vehicles to their homes or other convenient locations. Some people want to purchase their cars online and have them delivered. Transport services enable buyers to complete their purchases without having to visit a dealership.
Other people want to expand their car search by purchasing from dealerships in other geographic areas. Rather than making a lengthy trip to an out-of-state dealership, a consumer can use a transport service to ship the vehicle to their local dealership. Car buyers may also use transport services when ordering custom vehicles with the colors and features they want.
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How are new cars transported to dealerships?
A car shipping transport company can move vehicles to and from dealerships using several methods. While some are more common than others, each method offers its own benefits.
Lindsberg Pettway Jr., floor manager at Feldman Chevrolet of Livonia in Michigan, recommends knowing the types of shipping a transportation company offers, such as open or enclosed transport. Additionally, ask about special services the company may offer. “Check if they provide services for special requirements, such as transporting classic, luxury, or oversized vehicles,” Pettway says.
Open transport
When you see a tractor-trailer hauling multiple vehicles on the highway, that’s known as open transport. Also called open carrier or open car shipping, this method involves using an open trailer to move vehicles. Often, these trailers have multiple levels to carry seven to 10 vehicles at one time.
Open transport is the most common car shipping method, and it’s usually the most cost effective for dealerships. You can transport vehicles by open carrier across the United States and when shipping from Canada. Like other shipping methods, open transport has its pros and cons.
Pros:
- Affordable way to ship cars
- More fuel-efficient than other methods
- Ability to inspect cars visually throughout shipping
- Available for many vehicles and locations
Cons:
- Exposure to the elements, including bad weather and road debris
- Higher risk of damage if an accident occurs
Enclosed transport
If you’re worried about potential damage to your vehicles, enclosed transport may be the answer. Unlike open car shipping, this method uses an enclosed trailer to transport vehicles securely. Specialty dealers selling vintage cars or luxury vehicles often use enclosed transport for enhanced protection.
While enclosed transport offers many benefits, it also has its downsides. Enclosed trailers usually carry fewer vehicles than open-air semis. For this reason, it’s typically more expensive.
Pros:
- Better protection from weather and other elements
- Good option for high-end and specialty vehicles
- Lower risk of damage on the road
Cons:
- Higher cost than open carrier shipping
- Less fuel-efficient
- More difficult to conduct visual inspections
Shipping containers and boats
How are new cars transported to dealerships from countries abroad? Typically, they travel by boat to American ports. This method involves loading vehicles onto ships for overseas transportation. Vehicles can travel on a roll-on/roll-off (RORO) vessel, which has ramps for driving vehicles onto the deck. Cars can also be loaded into shipping containers and transferred to ships by cranes.
Pros:
- Efficient way of shipping vehicles built outside of North America
- Options for RORO or container transportation
- Cost-effective method for transporting bulk vehicle shipments across water
Cons:
- Potential for lengthy shipping times
- Complex customs regulations upon entry into the United States
Trains
If you don’t need to move vehicles across a body of water, rail transportation may be an option.
With this shipping method, cars get loaded onto a shipping container and transported by train. It’s a good choice for long-distance transportation, since there are numerous rail networks across the country. Additionally, it’s common for auto manufacturers to move large quantities of vehicles to dealerships by train.
Pros:
- More cost-effective than sea transportation
- Transports a large volume of cars at once
- Safe way to move vehicles
Cons:
- Inflexible routes
- Requires transfer to trucks for final delivery
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What types of cars do dealerships move?
Car dealers ship a variety of vehicles to and from their lots, depending on their inventories and customer needs. Many choose to partner with car dealership transporters, such as a vehicle logistics company, to move these vehicles in an efficient, reliable way.
New and used cars
Dealerships often sell a combination of new and used vehicles, and they need to maintain their inventories with quality cars, trucks, and SUVs. They use dealer transport services to ship these vehicles from manufacturers and other sources, such as dealer auctions.
Luxury and exotic vehicles
Some dealerships need to transport high-value vehicles, including luxury and exotic cars. When shipping premium vehicles, dealers often partner with transport services because these companies specialize in moving cars safely and securely. Companies may also offer increased insurance coverage for additional protection.
Classic cars
Similar to luxury vehicles, classic cars usually require additional consideration during transportation. If your dealership sells classic or vintage cars, a transportation provider can offer maximum protection when moving these vehicles.
Dealer-to-dealer auto transport
Dealer trades are a common practice in the automotive industry. A dealership may issue a trade when a customer wants a vehicle in a specific trim or color. If the dealer doesn’t have the vehicle on their lot, they can request a trade with another dealership that has the requested car in stock.
Transportation companies often have a wide network of local carriers, enabling them to facilitate trades between dealerships in different locations. They can provide both inbound and outbound transport services to handle the entire trade from start to finish.
Online sales
Limited supply and increasing prices have led some customers to shop online for new vehicles. With online shopping, customers can view inventories and purchase vehicles from dealerships in other areas. A transport company can deliver the online order to the customer.
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Pros and cons of car dealership transporters
While some dealerships handle vehicle shipping in-house, many choose to partner with transportation companies to move vehicles. Working with a dealer transport service can have both immediate and long-term benefits for your business.
- Cost Savings
Often, dealerships partner with transportation providers because it’s more cost-effective than using internal resources to ship vehicles. The costs of in-house vehicle transportation, including personnel, fuel, and maintenance, can add up quickly. Comparatively, third-party companies offer a cost-effective transportation solution while maintaining high standards for quality, reliability, and safety. - Convenience
Companies that transport cars for dealerships have expertise handling all aspects of vehicle shipping, whether you need to ship a vehicle across state lines or arrange international transportation. A dealer transportation company can take this process off your plate, allowing you and your staff to focus on other business areas. - Compliance and insurance
Transporting vehicles, especially long distances, can involve complex regulatory requirements. Reputable dealer transport services stay up-to-date on federal and state regulations to ensure compliance with all laws. Additionally, these companies provide sufficient insurance coverage to protect vehicles during shipping, even if unexpected challenges occur. - Market Reach
Working with a transportation company can significantly expand the market reach of your dealership. By shipping vehicles quickly and efficiently, a transport service enables your dealership to reach customers in new and untapped markets. You can also increase your inventory by purchasing vehicles from other locations and shipping them to your dealership. - Customer satisfaction
Partnering with a dealer transportation company can help you meet customers’ needs, improving their experience with your dealership. You can offer contactless vehicle delivery services for customers who want to buy cars online. You can also source and deliver vehicles for customers with specific requirements or custom requests. Over time, this level of customer satisfaction can enhance your dealership’s brand and reputation.
Cons of dealer transportation providers
Although car transportation companies can offer many benefits for dealerships, there are some potential drawbacks to consider. You need to make sure a potential transportation provider can handle your dealership’s needs, especially if you require expedited transportation to meet supply-and-demand issues.
In addition, you must do your due diligence to ensure you choose a reputable provider. Unfortunately, some companies may offer cheaper prices at the expense of quality and reliability.
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How to choose the right car dealership transport service
With the right dealer transport service, you can avoid these potential problems and gain the benefits of fast, efficient vehicle shipping. If you want to make sure you choose the right car shipping company for your dealership, follow these steps.
- Research the company
Start by researching the company, including its years of experience in vehicle shipping. Typically, an established transportation provider has relationships with high-quality carriers across the country. A company that’s been in business for many years will also have the expertise to handle different types of moves, whether you need to transport high-end vehicles or deliver a large fleet across the country. - Read reviews
In addition to the company’s history, read reviews of other businesses and dealerships that have used its services. Pettway recommends using sites like Google, Yelp, and TransportReviews.com. You can also request to see client referrals or testimonials. “Ask for references from past customers to get firsthand accounts of their experiences,” Pettway says. - Ask about tracking
Your business can’t afford to be left in the dark about the current location of vehicles and their expected delivery times. Ask a prospective provider about their tracking methods. “Check if the company offers real-time tracking of your vehicle during transit,” Pettway says. “Ensure they provide regular updates on the vehicle’s status and location.” A quality transportation service will provide transparent information about tracking and delivery. A dealership should also have access to a coordinator who can provide additional information about estimated delivery times.
- Consider insurance
Ask about a company’s insurance policy to ensure it provides sufficient coverage for your shipping needs. “Verify the extent of the insurance coverage provided during transit, including what types of damage or loss are covered,” Pettway says. A good standard is to require carriers to have a minimum of $1 million in liability coverage and $100,000 in cargo insurance. - Get a quote
Once you find a provider that meets your expectations, get a quote for services. Most reputable transportation companies offer free quotes for businesses, including dealerships. You can also contact the company directly for a detailed pricing estimate based on the delivery date, location, and shipping method.
FAQs
How are cars transported to dealers?
Third-party companies usually transfer new vehicles from manufacturing plants to dealership lots, where they’re sold to the public. A car transporter for a dealership can ship vehicles by truck, train, or shipping container, depending on the origin and destination locations of vehicles.
Can a dealership ship a car to another state?
Many dealerships can ship cars to other states. These dealerships may contract with transportation companies that have experience with regulations for interstate travel.
What’s the best way to ship a car?
The best way to ship a car depends on various factors, including the type of vehicle you’re transporting and your budget. Open transport is a common way of shipping a car from a dealership, as it’s usually more cost-effective than other transportation methods.