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Manheim Mondays – Fleet Driver Cary at Car Transport

Car Transport as a Fleet Driver

This week at Manheim Kansas City, we talked to Cary at Car Transport. He has been a driver for years, and enjoys being a company driver that gets home every night, without a lot extra to worry about.

Are you based out of Texas?

No, here in Kansas City.

Oh, we are based here in Kansas City. Yeah, that’s where one of our offices is, is out of Kansas City. How long have you been driving for?

Hauling cars? Probably 7 ½ 8 years.

And you haven’t worked at Car Transport that whole time?

No, it will be 3 years at the end of the month.

Awesome, and how did you get into car hauling?

I drove a box around, I drove a tanker around…hauling cars you just make more money.

That makes sense, you’ve seen profits from that?

Eh, yeah. I can’t make that money any place else.

Have you tried other industries?

Cary, Car Transport driver at Manheim Kansas City

Cary, a fleet driver at Car Transport, poses for a photo at Manheim Kansas City on Feburary 08, 2019

Yeah, hauling cars for a company like this…I can’t make even close to what I can here.

Do you get to go home on the weekends?

I’m home every night. I drive a load from here to St. Louis and then one back.

Wow, that’s really cool. Are you planning to work at Car Transport for a while?

[laughs] No…I mean, I’m planning on winning the lottery or getting a really good stock, you know? [laughs] but in case that doesn’t happen, I’ll be hauling cars.

And since you’ve been hauling the whole time, has anything changed? What’s changed?

Positive or negative?

Both.

“Biggest negative has been the logbooks, the way they do that. The positives is maybe that the equipment is better. Easier to use. When I first started we had a bunch of decks. Instead of having three levers…All these red levers here? That’s all for the top. Instead of the 7 or 8 here, we used to have 20.”

And what do those all do? They just do different angles and stuff? That’s cool, I’ve never heard anyone say anything about the angles of the trucks.

Yeah.

That’s cool, so do you own the truck? Or lease it? No? You’re just 100% w-2?

“I’m 100% W-2.

Would you ever own?

I owned a truck before, I didn’t haul cars, but I would never own another truck again…when I owned my truck, I was working 70-80 hours a week as an owner operator and was making the same as a company driver after I paid out in breakdowns and fuel and maintenance…I wasn’t prepared when I got into it. I thought it was going to be a piece of cake, and it wasn’t…with this truck, if something happens to it, they come and take care of it. My truck, I don’t care if I’ve worked 20 hours that day. I still have to fix it.

Car Transport eBOL app Super Dispatch

Do you think being an owner operator or contractor is worth it? Have you done fleet driving and had your own authority? Which is better? Let us know in the comments!

How to Handle a Carrier – Broker Relationship in Car Transport

Tom Stec of Fury Transport is a Super Dispatch customer and occasional blog contributor.

When I started my career as a car hauler I learned a valuable lesson about how to handle damage claims. After delivering a vehicle, the dealer found damage to the undercarriage. The broker notified me about the damages and my initial reaction was to deny the claims made against me. I was given two options to resolve the claim; either pay for the damages or not pay and be blacklisted by the broker.

At the time I thought this was unfair to me because normally I don’t check the undercarriage of vehicles and as a result, I did not list damages on my condition report. What really helped ease the situation was that the broker was very calm and told me it’s not a big deal, just a cost of doing business.

Mistakes like this happen all the time in this industry. I was reluctant to pay but I knew that in the long run it was not worth losing contact with this broker over a couple hundred dollars. I generated far more revenue hauling for this broker and I knew it was not a wise business decision to get blacklisted and miss out on future potential profits.

Carrier – Broker relationships have deteriorated in the new age of car transport

The internet has revolutionized the car transport industry with the formation of load boards such as CentralDispatch. Online load boards have made it easier for carriers to book loads and have made it easier for carriers to connect with brokers. Though the internet has simplified the process of connecting with brokers it has made it harder for carriers to build solid, lasting business relationships. Before the internet, carriers and brokers relied on mutual relationships of trust and honesty to get loads picked up and delivered.Today,, many car haulers fail to create any lasting relationships with brokers because the internet enables haulers to replace them with another.

Though the internet has simplified the process of connecting with brokers it has made it harder for carriers to build solid, lasting business relationships.

But accidents in this industry are bound to happen.  And it’s beneficial for both carriers and brokers to be honest with each other not only for the sake of building lasting relationships, but also to ease the process of settling the claims that inevitably happen.

Whereas, dishonesty creates problems for brokers who then have to deal with customers. Dishonesty isn’t just hiding damages:it can also be something like not delivering on time. Delaying delivery further complicates situation between the broker-carrier, broker-customer, and ultimately carrier-broker.

Bad business hurts the broker and the customer in car transportSuper Dispatch broker car transport

Sal T. at Pristine Auto Group in Bloomfield, NJ is a used car dealer that had a serious situation with a carrier being dishonest and evasive. Sal sold a vehicle to a customer in Florida and dispatched a carrier to pick up the vehicle. The carrier picked up the vehicle, collected payment, and told Sal the vehicle would be delivered four days later.

“A week later my customer calls to get an update on the shipment and tells me that the carrier will be later than expected due to a hurricane” said Sal. At the time, Sal didn’t think much of it and said he would “rather have vehicle arrive later and in good condition, than risk the vehicle being damaged”. Two weeks go by and Sal’s customer calls and demands to know when his vehicle will be delivered. The buyer was very frustrated because the carrier kept delaying the delivery times and ultimately stopped receiving his calls.

“About 3 weeks after the vehicle was picked up the buyer called threatening me with legal actions and claiming I stole his money and defrauded him.” said Sal. More than three weeks after the vehicle was picked up, Sal was finally able to get a hold of the carrier and had the vehicle brought back to him. To alleviate the situation, Sal purchased the buyer a plane ticket to fly to New Jersey and drive the car back to Florida. But after some research, Sal realized that the carrier that picked up the vehicle had is MC Authority revoked by the DOT and was unable to operate his truck.

The carrier’s dishonesty resulted in monetary damages for Sal and resulted in Sal’s customer losing trust in the process of having vehicles transported by car haulers.

“Had the carrier been truthful from the start, I would have been able to find another company to deliver the vehicle,” Sal asserted. “His dishonesty not only caused me to lose money on the first shipment, it also caused me to lose money on buying a plane ticket for the buyer. Now I have to go through the trouble of small claims court to get my money back on the payment I made to the carrier because when he brought back the vehicle, he said he didn’t have the money right now.” said Sal.

If the carrier had been truthful, and communicated the problem with the Sal, all of this could have been avoided. The carrier’s dishonesty resulted in monetary damages for Sal and resulted in Sal’s customer losing trust in the process of having vehicles transported by car haulers. Simply being honest could have have prevented a chain of negative feelings and events from taking place.

The carrier has ruined his relationship with Sal and has narrowed his network of brokers for employment. This was an easy job where everyone could have left satisfied, if the carrier had just been honest.

The Broker – Carrier relationship can benefit everyone – if you let it.

Building a good relationship with brokers can lead to more profits for the carrier. One of the greatest benefits to maintaining a good relationship with brokers is that those brokers will call you first when they have a good load and they will generally be able to offer more for the load because they trust that the carrier can get it done without any issues.

I have built a solid relationship with a broker I work with and whenever that broker gets a load he usually offers it to me first. This is beneficial for me because I am offered the load before it is put up on the load board. I have no one to compete with and I know that the load will be paid on time without any issues. With trust and honesty I am also able to ask more for the load and the broker is always willing to work with me so that both parties are happy with the negotiated price. On top of all this, the broker always offers me a no fee quick pay instead of the standard fifteen day pay.

With trust and honesty I am also able to ask more for the load and the broker is always willing to work with me so that both parties are happy with the negotiated price.

The importance of maintaining a good relationship between brokers is essential for carriers to make it in the long run of their business. When carriers focus on building lasting relationships, they end up making more profits and are given more opportunities. In this new age of car transport, carriers must treat their business as a brand and work every day to build a good brand image. When a carrier provides excellent service and a lot of value to a broker or customer, they build a better brand image. With a better brand image, those customers are likely going to come back for more business. Repeat customers are what carriers need to prosper in the trucking industry, especially during the slow times when there isn’t much work. When damage claims arise, the process of handling these claims is so much smoother when the carrier is honest and values the relationship they have with the broker. Honesty and integrity will allow both parties to resolve the issues and meet at terms that are fair for both sides. We all know how competitive the car transport industry is so we must seek to provide more value to customers in the form of honesty and integrity. Once a customer sees value in a company they will likely want to work with that company again.

Tom Stec is Owner and Operator of Fury Transport and a Super Dispatch customer.

BacklotCars reaches faster car transport times enabled by our Shipper API

Like Super Dispatch, BacklotCars set out to disrupt a long-standing part of the automotive industry. With Super Dispatch focused on modernizing automotive logistics, BacklotCars is focused on modernizing automotive wholesale.

Four years ago, founders Justin Davis and Josh Parsons were working at Manheim Auctions. They saw a broken system – limited access to inventory, capital and inefficient transport.

Justin and Josh created BacklotCars, as an alternative to brick and mortar auctions. BacklotCars is connecting dealers across the United States and quickly becoming the easiest way for stores to both source, sell, transport and finance wholesale inventory. Both Super Dispatch and BacklotCars continue to disrupt long-standing industries.

Justin and Josh created BacklotCars, as an alternative to brick and mortar auctions.

How BacklotCars is different

“Originally, most dealers would go to local auctions to buy and sell cars. What we did was turn it into an online marketplace, without the physical location,” Sean, the Director of Transportation said to Super Dispatch. “This allows them to purchase inventory outside of their particular region. So for example, if I’m in Kansas City, I’m not limited to the local auction. I can purchase cars across the country.”

As BacklotCars opens up new trade opportunities for dealers, transportation becomes important. That’s where Super Dispatch comes in.

BacklotCars runs auto transport different than traditional load boards and auctions because of the technology it utilizes. Now auto dealers across the country can transact without stepping foot on an auction floor, or worrying about transporting their purchases.

As BacklotCars opens up new trade opportunities for dealers, transportation becomes important. That’s where Super Dispatch comes in.

Changing the game of auto transport

Before Super Dispatch, employees at BacklotCars would have to manually enter everything into spreadsheets. Sean had to type VIN numbers, condition reports, instructions, delivery and pick up information into their backend system and then post vehicles as loads on the Central Dispatch load board. A single morning’s worth of car sales could take a business day to type and post online for car transportation companies to find.

Before Super Dispatch, employees at BacklotCars would have to manually enter everything into spreadsheets.

“If we sold 50 cars a day, we would manually enter them on the load board or send them over to our partners using spreadsheets,” Sean said. “Which as you can imagine, is very time consuming. So sometimes the car that sold at 8 am wouldn’t get posted and shipped out maybe for a day.”

How BacklotCars ships cars in wholesale

Before Super Dispatch helped BacklotCars post loads and match carriers, auto transportation could take 10-14 days. With Super Dispatch, 80% of loads dispatched through Backlot are delivered in less than seven days, and 65% are delivered in less than five.

The BacklotCars sales team has successfully leveraged the reduced transport time to appeal to a wider range of customers.

“In sales when they’re promoting, they say ‘Hey, we can get your cars to you in 3-4 days.’ That’s a big promotion for people that are in our buy space,” Sean said.

That’s because Super Dispatch cuts their manual work in half by integrating with BacklotCars backend marketplace technology. Now, they only need to enter information for a car once – in their own system. Once that car is sold, its information is sent to Super Dispatch through the seamless API integration.

Super Dispatch cuts their manual work in half by integrating with BacklotCars backend marketplace technology.

From there, the BacklotCars team organizes the individual vehicles and send load offers to preferred carriers within their network.

“It just auto-posts everything the minute [a car] sells, because it’s already out there…we shoot it straight over to Super Dispatch.”

The connection to the API means that BacklotCars can offer loads to trusted carriers without ever calling them – instead, the carrier gets a text and email with the load information, which they can choose to accept.

If a load can’t be taken by their preferred carrier, they can still avoid the cumbersome load-posting process on Central Dispatch.Super Dispatch API makes it easy to post to Central Dispatch when you need.

The connection to the API means that BacklotCars can offer loads to trusted carriers without ever calling them.

Also, the logistics team can easily determine if a car was damaged in transport by reviewing the electronic Bill of Lading and inspection photos. Plus they can give ETAs to customers when loads are automatically marked as picked up or delivered.

“First thing I do every morning is I track vehicles that are assigned to specific carriers. Let’s say they were supposed to be picked up over the weekend, let’s say there was an issue and it didn’t get picked up, I see that,” Sean says of the Super Dispatch dispatching tool. “So we can communicate that quickly with our customers.”

What’s next for BacklotCars?

Because Sean and Julie no longer spend their entire day posting loads to load boards, they can focus on other things; expanding their transport region, optimizing trade routes and creating carrier contacts.

“On the accounting side we went from about 9 hours of paperwork to about 15 minutes,” Sean said. “As far as the load posting, if we had 50 cars to post, I would post from when I got to work to when I left.”

“I did other things in between, but most of that time I spent posting. Now I don’t post anything. It’s out there already. I’m able to look at new routes, create partnerships with new carriers. Things like that.”

In the next year, Backlot hopes to reduce 80% of their loads to a 5 day turnover time.

Super Dispatch is planning big things for 2019 as well.

Eventually, Super Dispatch will be an end-to-end unified vehicle shipping platform for car haulers, shippers and brokers, which will enable better communication throughout the entire industry.

In the near future, Super Dispatch will become the largest vehicle shipping platform – for brokers, carriers and shippers alike. The largest network of car haulers, shippers brokers will be available in Super Dispatch’s Broker and Carrier TMS. Through tools like our Smart LoadBoard and Carrier Vetting, our platform will automate, digitize and provide visibility into the entire vehicle shipping process, all within one system.

Eventually, Super Dispatch will be an end-to-end unified vehicle shipping platform for car haulers, shippers and brokers, which will enable better communication throughout the entire industry.

 

Conversations at Manheim Kansas City

To stay close to our customers and the car hauling industry in general, Super Dispatch regularly steps out of the office to ask people what they think: about our product, about the industry, or about anything that is topical for the people we create our product for. This week at Manheim Kansas City, we spoke with Dan, Owner Operator of DHI and Ty, CEO/Owner Operator of Cars on the Move:

Who are you and what is your company?

DAN: My name is Dan, from DHI. I own 3 trucks, I’m a fleet owner. I’ve been doing this for 8 years. I got into car hauling because I wanted to be home more. [laughs] I truly did. I did this because I owned an environmental cleanup company for the government. I owned a construction company. I did that for 12 years. I was on the road, Monday – Friday every week, so I looked at stuff and that’s how I got into it. It was supposed to be just me, one truck one trailer, that’s it. Now I got three of them, and I’m looking for a fourth. Ty is number four [laughs.]

What’s the hardest thing about the industry so far?

DAN: [laughs] I can’t say that…Probably fuel increases. I don’t know, it’s gotten kind of cut throat. What do you think, Ty?

TY: There’s nothing easy about this job.

DAN: Guys don’t work together anymore, like they used to when I first started. And I haven’t been in it for that long. Ty has been in it for a lot longer. But I don’t think guys work together as much as they used to.

Do you have an example?

DAN: Oh, I do. But I’m not going to… 

TY: Yeah, stay out of politics.

DAN: Yeah, the thing is about car hauling…is if you make a bunch of enemies…it’s a small circle. Yeah, there’s a lot of people that don’t know each other and if you start screwing up that circle… Oh yeah. It’s a tight-knit group. It’s a niche market. So you don’t want to make a bunch of enemies.

So Ty, you have worked here longer…how long have you been in?

TY: 19 years.

DAN: See? I told you, I’m just a punk, a little rookie! This guy is a legend.

TY: Yeah, I drive. I got a truck…a big rig. [laughs] I got a big one. That’s not quite as nice as the other 20 big rigs semis I had. I had a fleet of 20 new Peterbilt’s, sold out and I’m now starting over with one not so new big rig.

So do you also agree that is the hardest part of the industry? The lack of camaraderie?

Ty Thompson DHI Car Haulers Super Dispatch Manheim conversation eBOL app

Ty of Cars on the Move explains a point to Super Dispatch on the Kansas City Manheim car lot on November 8, 2018. Dan and Ty are Owner Operators and seasoned Car Haulers.

TY: I think that’s the biggest one.

DAN: That makes a big difference. Life is a lot better if everyone gets along, right? I don’t know, what do you think the hardest thing about car hauling is?

TY: It’s all the new apps – that are gonna fix everything. Like Super Dispatch! [laughs] Here’s another app, that will make it better. I’m into relationships. I miss that, I miss the relationships.

DAN: To me, what Ty said, that’s really accurate. I think we get away from talking to our customers, more now. They say “here you go, here’s the load – it’s all on your app.” And we don’t talk no more. We used to talk all the time. I mean this load here… I’ve had to work to get it loaded, and I don’t even know the customer.

And you used to know the customer?

DAN: Well, we did. It was on paper, so it was more personal. You used to walk in, and say “I need your signature” now it’s like walk in and you barely get your phone back.

TY: And you know, the network that you’re talking about is…it’s exactly right. It is a network. The problem is if you minus the people – what kind of network do you have? I’ve just got an app. That’s all.

DAN: Right. I don’t like it because I’ve had problems with other companies with apps. You know what I mean. I’ve companies where I do their app, and it is required to get delivered, and then when it comes time to get paid, all of a sudden “oh our app went down…you need to get a bill of lading signed.” Like what? That load was last week…Yeah I mean lucky for me I don’t get hurt, because it’s been mostly Kansas City and St. Louis where I run a lot. But it’s like…I can’t get that paper now. I’m a fan for and against apps, you know. They help and they hurt.

TY: I mean Super Dispatch app, or any app, it’s always okay. But it’s like – what happened to picking up the phone? I miss that.

DAN: Yeah I like that. I mean, It’s good for my biggest customer. Can you imagine all the Bills of Lading I’d have? All the stacks of paper? Because with my company, we do about 5-600 a month for one customer. So the app works good, for them. That’s handy.

TY: Yeah, plus you can still go in there and talk to them.

DAN: Yeah, but it would be hard to keep track of all that paper.

So maybe it’s better for existing relationships, but for new ones it’s almost made it worse?

DAN: It can. And you know, some of these guys are old school. I say I’m right on the cusp of the technology. I can really have a hard time with it, or I can make it real easy. But I got one driver, he’s a great driver, doesn’t tear anything up, but he struggles with it, in his 50s. There’s no doubt in my mind…you know I’ve never had to call that guy to see if he needs help, if he is going to make it to work on time or whatever – like I have with other people [laughs] – but he struggles with the technology side.

TY: And that’s what’s crazy too. You know there is a driver shortage, let’s make it worse by making it harder for the old guys.

DAN: Yeah, that’ll keep them!

We really enjoyed speaking with Dan and Ty (among a few other car haulers that we at Manheim Kansas City this week.) Tell us in the comments what your biggest challenge in the industry has been. Do you agree with them that camaraderie has broken down in the last decade? Or are all the apps what bothers you? Or is there something else?

Let us know! As always, thanks for reading.

Manheim Kansas City. Super Dispatch is the best eBOL and VIN scanner of any car hauler TMS

Super Dispatch has the best VIN scanner of any car hauler mobile app around. Click on this photo to download the free mobile app and TMS to test our text, barcode and QR code scanner.

 

 

TOP 8 things car haulers need to know before getting insurance

Your insurance is as important as buying or financing your truck and trailer, like we covered in our last posts. Because car hauling insurance can differ greatly from traditional truck insurance, Super Dispatch found an expert to help explain the process.

Brian Riker owns Fleet Compliance Solutions, which is a trucking consultancy that specializes in car hauling and towing. Due to his 30 years of experience in the truck and towing industry, he can help any new Owner Operator get their authority and wade through compliance violations.

Here are the 8 things Brian thinks are most important when shopping for truck, trailer and cargo insurance policies.

1. Read your policy well

Comprehensive cargo insurance is really what makes or breaks a car hauler with a brand new authority. But with all three of your insurance policies (truck, trailer, and cargo insurance) make sure to read your policy WELL. Ask questions like:

  • What is your monthly cost?
  • What is your deductible?
  • What does it cover?
    • Acts of god?
    • Collision?
    • Does it have Auto Hauler Constructive Total Loss?
    • Does it cover over-height loads?
    • Does it cover diminished value?
    • Does it cover burglary or vandalism?
  • Restrictions on coverage?
    • What ISN’T covered?

If you can’t read a policy inside and out, you might need to revisit being an owner-operator or get a consultant like Brian Riker. He sees the same situation happen over and over again with specialized freight haulers.

“One guy gets quoted $25,000 and the next guy gets $10,000. They think they have same coverage because they have the same million-dollar public liability for $100,000 cargo,” He says. “But what they don’t realize is that one of those policies might have a high deductible. Or one of those policies might have a lot of exclusions. So you really need to look at your policy to make sure it’s covering what you need.”

2. Make sure you have relevant car hauling experience

Brian Riker Super Dispatch Insurance quotes car hauler

Brian Riker, owner of Fleet Compliance Solutions

Most insurance companies won’t touch a new trucker unless they have had at least two years of driving experience with a fairly clean record. But car hauling is not like hauling general freight, and thus the insurance market for car haulers isn’t the same either. “Relevant experience” is one of the biggest factors in determining the price of insurance – emphasis on relevant. If you are a trucker with plenty of experience in general freight driving a dry van – don’t think that will cut it. Even with a decade of experience, general freight means little to a car hauling insurance agent

That’s because the defining traits of car hauling are: open air cargo, the need for chains and straps to secure and a hard to maneuver trailer. This kind of freight is higher liability and requires skilled maneuvering.

“To show that you have relevant experience, you need show you have operated open-deck carriers.” Riker says. “Like flat beds or low boys hauling equipment. And if you can document that, you can get more affordable insurance.”

3. Credit is a bigger factor than anything

“It shouldn’t be, but it is,” Brian says.

Insurance is ultimately a bet that you won’t cost your insurer more money in an accident than you can pay in premiums. Which means your credit is an important factor – they need to know you’ll pay on time and cover your deductible when the worst happens. When starting a business, good credit is necessary.

4. Watch out for towing insurance

eBOL super dispatch insurance blog car hauler Towing insurance can be problematic in a number of ways for car haulers. First, some insurance agents or groups will try to “upsell” new Owner Operators on extra towing insurance to accompany their liability and cargo insurance. This extra coverage will cost an Owner Operator more money, but basic towing insurance comes standard with many policies. An insurance agent might push for a more comprehensive towing plan because it will save an insurance company money on towing fees in the case of an accident.

Another issue is an agent issuing towing-specific insurance instead of car hauling-specific insurance. It will be cheaper, but it won’t cover nearly what is needed for a car hauler. Sure, a car hauler can operate with towing insurance but will likely be turned down by brokers and is putting himself at risk in the process.

.“It looks the same to the FMCSA on paper and it will get an operating authority,” Brian says. “But when they have an incident or they are transporting a vehicle across state lines, it may not cover your damages.”

5. Shop early, shop often

“I see guys put the cart before the horse, so to speak,” Brian says. “They’ll apply for an authority, and when they need the insurance filed, they’ll get stuck taking Progressive or what I call “providers of last resort” because they can’t find insurance anywhere else.”

Just like our first tip explained, the difference in insurance plans are up to the discretion of the agent. Shop around and gauge what your best deal is.

6. Have enough money for your deductible, always

“I charge $695 to start your initial authority, with $300 of that going to the FMCSA filing fee,” Brian says of his consultancy. So, I make $395 doing all the paperwork. And there are people that have to put that on a credit card because they don’t have $700 cash or in the bank to write me a check. And they’re trying to start a brand-new trucking company.”

This should be a given for all financial aspects of your new business, but always have cash in the bank for unexpected problems. Especially in car hauling where the liability is high, have at least the amount of your deductible in the bank at all times. Yes – that’s means at least $5,000- $10,000.

7. Stay away from captive agents

Much like “Shop Early, Shop Often” you must also “Shop Variety,” according to Brian Rikers.

“Stay away from the guy who can only write Progressive or can only write Farmer’s. You want to go to a “multi-line” agent because they can go shop among dozens of different companies to find you the best,” Brian advises. “And he’s the one who will probably choose from different underwriters what gets you the best rate.”

8. Have a plan

Brian Rikers is a person that helps Owner Operators plan, so that’s  his ultimate advice for new Owner Operators – make a plan for every aspect of your business,not just insurance.

“Have some customers ready, don’t just expect to get loads off the broker boards. Have an idea at least where you are going to get your customers, and have money in the bank,” Brian says. “Have cash put away. Don’t get in a hurry when you want to start your own company.”

Was there anything you wanted to know about insurance that we didn’t cover? Do you want to know more about deductibles or captive agents or the different types of insurance? Let us know in the comments!

 

Super Dispatch listens to feedback at AHAA

The bi-annual Auto Haulers Association of America Conference was in Fernandino Beach, FL. this fall, and Super Dispatch was happy to be in attendance for the second time ever.

Earlier this spring, we made a blog post about the ultimate takeaways our company had from the AHAA conference. The key difference between the fall and the spring was the amount of in-depth feedback we were able to get from all of the carriers at the conference. In the spring, we walked away from AHAA with a lasting impression about how time consuming it is for carriers to run a car hauling enterprise. This fall, our biggest takeaway was the extensive feedback we got on how carriers business needs change as they scale up. We were happy to hear that carriers really appreciate how focused Super Dispatch is on implementing their feedback, and we were surprised that it was not more common place.

Trucks and Trailers: financing as an Owner Operator

Financing your Car Hauler Dreams

If you just decided to make the jump into your own operating authority, you know money is a primary hurdle. Specifically, finding out where to get it.

You might’ve scrounged up the money for a CDL, training and testing. Now you can take the extra thousands you have laying around to buy yourself a shiny new truck to start hauling with, right?

Of course not! Here in America straight cash will get you anywhere you want – but 20 or 30,000 is a lot to cough up all at once. That’s why we have financing options. So how does a car hauler get the best deal possible, without being swindled?

What you need to finance a truck and trailer

 You will need to have a minimum 2 years of experience driving.

You will need to have a minimum 2 years of experience driving. That means they will pull your CDL and check your haul references to verify that experience

In addition to having a long driving record, you will need to put down at least 20% upfront and maintain a good credit score.

Some truck leasors will do deals with drivers who have credit below 600, but the lessor will end up paying thousands more and have to move through a secondary market.

While credit score is the primary factor in financing your truck, companies will watch out for other signs of bad credit. If an owner operator has 2 bankruptcies, 3 repossessions and can only put 5% down, they likely will not be financed.

Some factors – such as repossession – weigh heavier against your chances of getting a loan than a lower down payment.

How do I know if it’s a good deal?

There is no such thing as a bumper to bumper warranty in commercial trucking.

Unlike Consumer equipment, there are few financial protections in place for Commercial equipment once a contract has been signed. But there are signs Commercial Operators can be aware of before committing.finance truck trailer car hauler

There is no such thing as a bumper to bumper warranty in commercial trucking.

Just read your contract, because the contract is going to specify exactly what is covered. People will compare it to a new car.

The only conversation that is said about the warranty is when the customer asks about a warranty and a sales person will say ‘yes, this has a brand new warranty.’ That might lead a customer to think they mean bumper to bumper coverage, but they didn’t say that. There is no such thing as bumper to bumper coverage in semi truck land.

A Consumer Protection lawyer in Kansas City, Bryce Bell, has a few suggestions on auto loans that are applicable to commercial financing.

“Bait and switch financing agreements are a big one,” Bryce says. Bait and switch is a tactic where a salesperson “pre-approves” the percent of a lease agreement (say, 10%) on the spot, pending some official approval from the bank. This makes the consumer feel like they already have a great deal on a new car. Then a week later, the sales team calls back saying the bank didn’t approve it at 10%, but the dealership found another place that could approve it on the spot for 20%. Now the customer is more likely to accept this bad offer, because for a week they were sure it was as good as bought.

Beware of red flags before you sign the contract.

Be sure to read the fine print of everything 5 times before you sign anything. Any contract comes down to – if you signed it, you own it.

How to keep a truck and trailer

Finally, once you have the truck, how do you make sure you keep up on those payments? Trucks aren’t going to run themselves (yet.)

Many Super Dispatch customers say the most common problem a trucker faces is unexpected maintenance costs.

Many experienced drivers think that new trucks are made worse, due to new government regulations and emissions standards. According to some SD customers, a truck can be running fine, but the check engine turns on.

If you’re an Owner Operator, try saving 5% of every load or a portion of your monthly income for future maintenance costs.

How have you financed your truck? What was your experience? Let us know below!

 

 

What kind of trailer should a beginning car hauler get?

Deciding your truck and trailer combination can be tough for beginning car haulers. Should you choose a tractor and double decker trailer? Do you get a Ford F450 and a wedge? These questions require a lot of thought. For a first time hauler, it is hard to make a decision. At Super Dispatch, we think the most important consideration for a beginning car hauler is trailer capacity.

How to decide what trailer size to buy

We created a flowchart to help you choose the best size trailer.

“Do you have a CDL?” is the most important question to start with:

Super Dispatch trailer CDL new to car hauling

 

Clearly, most of this decision will rest on the type of cargo you decide to haul. In this industry, certain cargo goes best with only certain kinds of trailers.

Best trailers for different kinds of car hauling

  • New cars are a high volume market and require larger trailers manned by experienced haulers.
  • The exotic car hauling market prefers enclosed trailers for extra protection.
  • Personal Vehicles shipping requires residential delivery so smaller trailers (attached to trucks instead of tractors) are more commonly used.
  • Tractors have fifth wheel steering and air brakes and thus can only be driven by CDL licensed commercial drivers.
  • Airport vehicle moves are some of the highest volume section of the industry, which requires large trailers (7-11 car haulers.)
  • Inoperable cars usually require forklifts to be moved, and can not be easily put on large double decker trailers.

The best all- around car hauling trailer

If you still aren’t sure what kind of hauling you will do, there are versatile trailers. Joey Slaughter, owner of Blue Ridge Transport LLC and author of The Beginner’s Guide To Auto Transport, suggests that new drivers buy trucks with 3 car wedge trailers.Super Dispatch BOL eBOL buying a trailer car hauler

“If you’re just beginning and have no equipment, I suggest starting with a three-car wedge trailer,” he writes. “It’s a reasonably inexpensive way to get into the auto transport business. I bought a new, three car trailer for approximately $7,000 and a used Dodge 3500 dually for $18,000 when I started. It’s easy to keep a three car trailer full, plus it’s a lot easier to maneuver in residential areas where a lot of deliveries are made.”

Super Dispatch’s product manager Vin agrees with Joey. He started hauling on a three car wedge in 2012, because of the easy profit margin.“If you can start with a three car, the first two cars will cover the cost of operation, and the third car is complete profit,” Vin says. Generally, only experienced car haulers can drive large capacity trailers. But do well hauling 3 and 4 cars at a time, and you will level up to hauling 7 or 11 cars quickly.

Stay tuned next week for our second piece about buying trailers! We will cover financing options, red flags to look out for and best buying practices.

A Guide to Shipping a Vehicle: a shipper’s perspective.

Not so long ago, I was reading car hauling-related blogs on Medium, and came across “A Guide to Shipping a Vehicle” by Brenden Mulligan.

He described his first experience ever shipping a vehicle across the country. And it was not great. He starts:

“I recently shipped a car across the country for the first time. My car ended up showing up filthy in darkness with $2,500 in damage which I didn’t see until the next day.

It was a confusing thing to set up. I imagine many people shipping cars have never done it and probably won’t need to do it again. So basically, the industry can take advantage of first timers.

Here are some things I wish I’d done differently:


  • Decide if you want open or closed transport. Open means the car will get very dirty, but it’s a lot less expensive and generally more available. Closed means the car is inside a container. I wish I would have done closed only so when the car arrived, it was clean.

  • Have the person on the pickup side take a zillion photos, send you a list of any and all damage that the vehicle had at pickup, and a photo of the pickup Bill of Lading, which is the document that is used to state the condition of the car. Know this inside and out so when it arrives, you know what damage is new.”photo inspection ship a vehicle BOL eBOL Super Dispatch car haulers

With just one experience in this industry, an individual vehicle shipper is advocating exactly a technology like what Super Dispatch offers.

Though his experience is from a completely different perspective than what we normally hear at Super Dispatch, he came to the same conclusion we have. Mulligan not only advises direct contact with the Carrier, but also photo inspections, and checking in on the location of your shipment. Our focus was on fixing the communication problems and headaches for the Carrier. But in doing so, we have begun to fix the problems on the shipper’s side as well.

Continue reading the rest of the article over at Medium….

 

Do Car Haulers Need a CDL?

Do I need a CDL with just a truck and flatbed trailer?

What are the CDL weight requirements for a car hauler?

Do I have to have CDL to haul 3 cars?

What is the maximum weight I can haul with a topkick and 40ft trailer?

I’m new to car hauling where do I start?

Hi, I’m new to car hauling-I’m looking to get a 1 or 2 car hauler to start, any suggestions?

These are some common questions that we get in the support window here at Super Dispatch. Because we have some former car haulers in our team, we decided to do a little overview of CDL steps and requirements.

A Commercial Driver’s License is a similar process to getting your regular driver’s license. You have to register within a certain state (where you reside,) you must prove your knowledge on a written permit test, hold a Commercial Driver Learner Permit for a period of time, and then perform a physical driving test.

Can I start hauling cars in ____ trailer without a CDL?

Depending on what kind of car hauling you do, you do not need a CDL to haul cars. Commercial Driver’s Licenses are designed to train commercial employees to drive heavy, oblong vehicles. Yes, there are trailers – like 2 and 3 car wedges – that are below the CDL weight requirement rules.

Rarely can we answer a weight requirement related question for someone – all vehicles and trailers have different GVWR and GCWR. No one but your truck and trailer will have these answers.

I often think that what people are really asking is “Should I start hauling cars without a CDL?”

This of course, we can’t answer either.

Do I need a Class A CDL to haul ____ truck and trailer?

While CDLs come in many classifications, Car Haulers need not worry about any classes or endorsements outside of a Class A CDL. Class A is the heaviest class of CDL, and thus the best fit for car haulers:

Class A CDL: Any combination of vehicles with a Gross Combination Weight Rating (GCWR) of 26,001 or more pounds, provided the Gross Vehicle Weight Rating (GVWR) of the vehicle(s) being towed is in excess of 10,000 pounds.

With a Class A certification, you can haul cars in a 50ft wedge all the way up to a 7 or 9 car trailer. If you aren’t sure what kind of trailer you will drive, or you aim to eventually be an O_O, this class is a must.

In Missouri (where Super Dispatch is based) obtaining a Commercial Driver’s License of any class at the DMV costs around $100 once it’s all said and done. Of course, actually paying for the license is the cheapest part of this process.

Can you get your cdl without going to truck driving school?

By this point in the CDL process, you might have noticed something: truck driving school is expensive. Whether it’s a single class, a semester or a community college – it can cost around $3,000.

This CDL thing is a huge barrier to entry!

The short answer is yes, in most states you can take both the CDL permit test and the physical driving test without paying for a trucking school. Most states will not require you to prove any sort of formal education.

Consider though, that going into any test completely blind is a bad idea.

There are some low cost options for the written and physical tests. Tom Stec, Super Dispatch customer and owner of Fury Transport LLC. in New Jersey studied for the written CDL permit test for free. To prepare for the written test, he simply read the New Jersey CDL Manual “cover to cover.”

“I prefer to read but others have watched YouTube videos and that worked better for them. There are even Apps for your phone that are in quiz format. Some people praise those because they don’t like reading,” he said.

Stec got lucky, because he was able to practice the physical driving test with his truck-driver father with his large trailer.

There are also companies and schools where you can schedule “practice tests” using your own equipment (or theirs) for a few hundred dollars. This allows you to get into a testing situation without paying thousands for multiple classes.

Most experienced car haulers scoff at the idea of classes; you can’t learn in a class, only in the field.

Do you need to test in the same vehicle that you will drive in?

Different people will say different things. The Missouri Highway Patrol (the department that runs Missouri CDL tests) says that you only need to prove your knowledge in a truck of the right classification. This means you could plan to car haul, but take a class or pass the test using a dry van. Remember though, a Ford F450 with the right trailer might be a Class A, but it won’t have air brakes, 5th wheel or a manual transmission. So you might walk out with a Class A CDL with air brake, 5th wheel and manual restrictions.

According to some of our customers, there is not much of a difference between car hauling trailers and traditional dry van.

“There’s no difference,” Tom Stec said. “We need a Class A (truck and trailer with air brake) You need additional endorsements for Tanker(hazmat),Passenger(bus), and doubles/triple trailers. We don’t need any of these additional endorsements but it looks good on your resume when applying for driving jobs!”

Prior to CDL Permit Test, you should:

  1. Obtain a valid federal MER MCSA-5875 form and Medical Examiner’s Certificate Form, (MEC) MCSA- 5876.
  2. Fill out a CDL application form specific to your state
  3. Study your state’s CDL Manual
  4. Take the CDL written permit test at a DMV

After acquiring your permit:

  1. Determine what kind of tractor / trailer combo you plan to pull
  2. Find a CDL trainer or a car hauling mentor
  3. Practice during the required time period in between your Permit and CDL test
  4. Learn every function and button about your truck / tractor / trailer

To prepare for your CDL:

  1. Get a mentor or trainer, or go to a CDL school to practice physical driving
  2. Practice:
    • Pre-trip inspection
    • Basic vehicle control
    • Road driving

CDL Super Dispatch mobile Any tips for passing driving test?

“When doing the road test, before you start driving you have to do a walk around inspection. You have to explain every single thing in detail and you can’t assume the instructor knows what you’re talking about. Picture instructor as a person who is new to trucking and you are explaining everything to them for the first time,” Stec said. “My road test instructor said that I did a better job at explaining everything than the instructors do at the CDL schools.”