Understanding Dealership Car Shipping
Transporting cars for dealerships refers to moving new, used, or traded-in vehicles between dealership locations or facilities like auctions, distribution centers, or auto manufacturers. This facilitates vital inventory management, reduces local overstock situations, and supplies dealers with the specific makes and models that customers want to purchase.
Dealerships may need to relocate vehicles for many reasons:
- Transporting new cars from distribution hubs, ports, or factories to retail sales locations
- Shuffling used and certified pre-owned vehicles between dealership locations to balance local inventory and meet market demand
- Moving trade-in vehicles to centralized reconditioning facilities, auctions, or wholesale partners
Most car dealership groups manage transportation logistics in-house, particularly for routine inventory shuffling. Others enlist specialized car transport businesses, rental car haulers, or third-party logistics firms to handle large-scale relocations or one-time events.
The frequency of transport needs ranges widely — from weekly load shuffling to fill gaps and improve CPO selection to one-time store openings, closures, or inventory rebalancing projects.
Careful coordination ensures vehicles arrive safely, on time, and ready to be bought — protecting profitability. Understanding the logistics of shipping cars helps dealers better manage margins and sales velocity.
Costs of Dealership Car Transport
Transporting automobiles is one of the largest variable costs in operating multi-location dealership groups. Carefully evaluating and budgeting for relocation expenses is key to preserving profit margins across a dealer network. Key factors determining auto transport prices include:
Distance
Long-haul, cross-country relocations cost exponentially more than local in-town shuffling. Industry averages range from $1-3 per mile for each vehicle transported, with 500-mile moves often starting around $800 per car.
Distance
Long-haul, cross-country relocations cost exponentially more than local in-town shuffling. Industry averages range from $1-3 per mile for each vehicle transported, with 500-mile moves often starting around $800 per car.
Number of Vehicles
Full truckloads with 8+ units achieve maximum economy of scale, with per-vehicle costs ranging from $800-1500. Shipping only a portion of a truckload means much higher per-car freight bills.
Timing
Vehicle transport rates fluctuate seasonally and are also driven up by weather delays, rush orders, or repositioning for one-way drop-offs only. This complexity requires flexibility in budgeting.
Insurance
Bumper-to-bumper policies that fully protect vehicle value are non-negotiable requirements for dealers. Typical premiums range 1-1.5% of asset value for the cars shipped.
Fuel, Tolls and Fees
These routine but variable operating costs inevitably get passed through to dealers in final transport bills. Expect ancillary fees to add 10-20% on top of base hauling rates, depending on route.
The Different Methods of Transporting Cars for Dealerships
Car dealerships primarily rely on three main methods to relocate vehicles between locations:
Truckload Shipping
This leverages specialized auto hauler trailers to move multiple vehicles on open or enclosed carriers. Open trailers can fit around 10 cars, while enclosed versions hold 6-7 for higher security. Ideal for frequent, high-volume inter-dealer transfers and efficient new inventory deliveries from distribution hubs.
Towaways
Single vehicles get transported via a tow hitch or flatbed pickup truck. Drivers can directly move cars to final destinations without consolidation, best for on-demand relocations and one-off trades.
Rail Shipping
Large trains equipped with multilevel auto racks transport new vehicles over long distances. Models at factories get driven directly onto specialized rail cars for mass movement. The most cost-efficient option for high volume but has limited flexibility.
How to Transport Cars for Dealerships
Arranging smooth car dealership transport involves:
Picking Vehicle Transport Partners
Get quotes from multiple approved auto shipping services or brokers with experience and expertise in transporting cars. Ask about routes, capacity, vehicle type expertise, and timetables.
Prepping Vehicles
Used cars may need mechanical certification or cosmetic reconditioning beforehand. Check fluid levels, tire pressure, brakes, and batteries.
Scheduling Logistics
Confirm timelines, pickup/dropoff specifics, vehicle condition reports, and staff coordination at both ends. Build loading/unloading time buffers into the schedule.
Securing Cars
Disable alarms, unlock doors, and leave a spare set of keys if transporting trades, rentals, or sensitive models. Engage antitheft devices.
Inspecting Units
Do walkaround checks for any damage before loading and unloading. Document via photos and condition reports signed by drivers and staff.
Following Up
Verify all dealership vehicles arrived safely at the final destination. Get copies of routing forms and submit them with invoices to streamline payments.
By understanding dealership vehicle transport processes, costs and contractors, finance managers can effectively oversee inventory moves between markets and stores. Careful planning and protection keep cars moving to where buyers want them.