Dealer-to-Dealer Auto Shipping: Essential Information
Car dealerships play a crucial role in the automotive sector by managing inventory and helping consumers find the necessary vehicles. One of the primary aspects of the auto dealership industry is transporting vehicles between dealers. Dealer-to-dealer auto shipping allows dealerships to move cars for sales, inventory management, or special promotions, making it a vital component.
However, there are particular challenges, logistics, and considerations to remember when shipping vehicles from one dealership to another. Understanding the necessary steps will help ensure smooth, cost-effective, and efficient transportation for dealership owners, managers, and others involved.
What is Dealer-to-Dealer Auto Shipping?
Dealer-to-dealer auto shipping is commonly used when a dealership needs to relocate cars for various reasons, such as:
- Shifting vehicles between branches
- Selling inventory to another dealership
- Moving cars as part of special deals or promotions
Sometimes, a dealership might need to ship a car to another location with stronger demand or a dealership specializing in a specific type of vehicle. Regardless of the reason, dealer-to-dealer shipping is a standard and essential procedure for the automotive industry.
Choosing the Right Transporter
When selecting a shipping company for dealer-to-dealer transport, choosing one trustworthy and experienced is crucial. Unlike consumer vehicle shipping, dealer-to-dealer shipments typically involve transporting several vehicles simultaneously, often in bulk. Working with a shipping company capable of handling large cargo is essential.
Look for transport companies that:
- Have a proven track record in fleet shipping.
- Are properly licensed and bonded by the U.S. Department of Transportation (DOT)
- Have sufficient insurance coverage
- Have experience with various vehicle types, including trucks, luxury cars, and exotic vehicles that may require special handling
Open vs. Enclosed Transport
The shipping method you choose for dealer-to-dealer transport will depend on factors such as budget, vehicle type, and the level of protection required.
- Open Transport:
- Open transport is the most popular and cost-effective way to ship vehicles in bulk. Cars are loaded onto an open-air trailer, carrying multiple vehicles simultaneously.
- This method is generally safe for most car models, especially standard vehicles, though cars will be exposed to the weather.
- It’s the most affordable option for dealerships shipping many cars.
- Enclosed Transport:
- Enclosed shipping provides a higher level of protection as vehicles are transported in fully enclosed trailers, shielding them from the elements, potential risks, and debris.
- This method is ideal for high-value or fragile vehicles, such as luxury cars, vintage models, and exotic vehicles.
- Though more expensive than open transport, it is worth investing in vehicles requiring extra protection.
Cost Factors in Dealer-to-Dealer Shipping
Shipping cars between dealerships involves several cost factors, including:
- Vehicle Type: Larger or more valuable vehicles may require specialized transport and incur additional costs.
- Distance: Longer distances require more fuel, time, and logistics, resulting in higher shipping fees.
- Quantity: Shipping multiple vehicles at once typically reduces the cost per vehicle.
- Seasonality: Shipping prices fluctuate depending on the time of year. Demand is higher in summer, which leads to increased rates. On the other hand, shipping costs are usually lower during the off-peak winter months.
Dealerships should consider these variables and plan shipments strategically to optimize costs. Scheduling shipments during off-peak seasons can help save money.
Preparing Vehicles for Transport
Proper vehicle preparation is essential to ensure smooth delivery and prevent damage during transit:
- Clean the Vehicles: Before shipping, cars should be cleaned to ensure that any pre-existing damage can be easily identified.
- Take Photos: Document the condition of each vehicle with clear, time-stamped photos. This provides crucial evidence in case of damage during transport.
- Ensure Operational Condition: Vehicles should be operational, as many transporters prefer working with running vehicles for more effortless loading and unloading. If a car isn’t operational, inform the transporter in advance so that special arrangements can be made (e.g., using winches for loading).
- Remove Personal Items: Most transport companies don’t allow personal belongings in vehicles during transit, so ensure all personal items are removed.
Timing and Scheduling
Timing is another crucial consideration. Dealerships often have tight deadlines, particularly when transporting cars for special promotions or new inventory. Several factors can affect delivery timing, such as:
- Weather
- Traffic
- Distance
Although transport companies typically provide an estimated delivery window, it’s essential to understand that these estimates are not guaranteed. Dealerships should allow for some flexibility in scheduling to account for unforeseen delays.
Insurance and Coverage
While reputable transport companies will have insurance to protect vehicles during transit, the level of coverage can vary. Dealerships must verify the insurance details with the shipping company before shipment, especially when transporting high-value cars. Additional insurance coverage might be necessary in some cases.
Maintaining Communication
Open communication between the dealership and the shipping company is key to a smooth shipping experience. Maintaining regular contact with the transporter and ensuring you are informed about any logistics or schedule changes are essential. From the initial pickup to the final delivery, consistent communication will help resolve any issues and keep the process on track.
