There is not always a lower price option or one worth hiring a driver or company to do.
Fuel is variable was 2020 $.40 all miles 2022 $.85
Tolls fairly consistent $.05
OTR Food, minor maintenance roughly $.05
Typical 3 car carrier the backbone of dealer delivery direct expenses
2020 $.50 3/2022 $.95 (190%)
Expedited service disallows for many backhauls, or outbound. To meet arbitrating vehicle issues 7 day window. Dealer concerns.
Indirect expenses: into per mile
HD truck and trailer, properly insured, and DOT compliant $.50
do you want a personal sized vehicle hauling your $1000's or tens of $1000's of investments?
Maintenance $.10 variable/rough minimum
Skilled driver licensed and experienced or a guy that saw a youtube video? $.75
Company that stays compliant so your vehicle isn't sitting in impound, side of the road breakdowns, or out of service at a weigh station due to many issues? Price will reflect what/if it shows up.
Cost was $1.95 2022 $2.40
If only paid 1 way to expedite that truck should roll for no less than $1.50 a mile per car. Backhauls, or outbound loads should be increasing driver/company income, but to get your cars faster not relied on. Typical loaded miles with separate pickup locations only loads a trailer around 40% of the time.
I hope that helps understanding why stagnant prices, or only slight increases simply reduce the supply of carriers available. If expenses including a driver's living are not met, a CDL A driver which is needed to haul 3 car minimum volume with a decent driving record can find a job making a minimum of $50,000 a year.
Why CDL-A truck GVWR 12,000 or more, 3 car trailer rated at 18,000 is considered a 30,000 lb rig, or rated for. Any over 26K requires a CDL-A.
**Our main lane was upstate/western NY to Ohio, there was rarely any back except to NYC which requires huge tolls, is very congested, and basically not worth considering.
**Higher capacity trucks and trailers. Takes more skill and the driver should not be earning the same as a beginner rig. They are responsible for heavier loads with larger equipment. Benefit to dealers is more vehicles arrive at once, sales increase, and so does profit.
Pricing above is for Cars, Smaller SUV's, Minivans a trailer is max 53' giving each 17' length, and 4,000 lb average weight on a typical wedge 12,000 lb load ability. 5 car trailer 20,000 lbs.
Equitable truck pricing is in relation to length and weight. If you haul a 3/4T for car pricing you are losing revenues, or are you overweight even if completed you have overloaded your trailer which wears it out faster. 1T dually at 8-9,000 lbs equitable pricing is $3.00 a mile. 2* what a average vehicle fee is. If you have like our 5 car Sun country trailer very capable used was twice the cost of a new wedge. Large trucks make it no more useful than a 3 vehicle one.
I hope this was informative for anyone reading dealer or auto transporter.
For the dealers thinking this was too much? How much higher is your return on a truck vs a car to pay a reasonable fee to get it there? Thousands more, and do you want a pickup truck with the lightest trailer option carrying that investment? Our typical hauls were about 350 miles.
Auto Transporters keep some or all of these things in mind and let them sit there if it doesn't meet your expenses, with a A license there is always a job that will pay you $50K plus a year. Starter driver rates, experienced $60,70k+? a year. It will cost less to deal with equipment disposal than the income loss.
Economics of Supply and Demand:
In a society of about 300M people in the US, there is about 3-5M CDLA drivers, Auto hauling is a specialized service. According to Central Dispatch they had 13,000 transporters across US & Canada, maybe further reaching? What's included under transporters are the big guys with 9 car units more than likely focused on new car full loads, auction lots of multiple pick ups one location to same locations, and long range transports like cross country. Brokers and transport companies farming out work, so how many actual transporters are there that deliver one pick one drop per dealer to support the used vehicle industry. Not too many. If priced out of business like 3/2022 fuel hikes have done, following Covid just 2 years ago how many will be left to haul the used cars? There are only so many willing to do any type of specialized work be it auto hauling, tankers, flatbed, oversized, or hazmat loads. Lower supply, increased demand, and price will follow one way or the other. When regular freight hauls in a simple box/van trailer is paying well over auto hauling specialized work, dealers will lose another round of haulers. 3/22 Loadboard research for 20K load Upstate NY to Columbus OH $2300 comparable to our 5 car usage weight and distance.
On any industry there are only 10%? of society willing to risk all they have to go into business, most opt for a job's income & stability, and how many last out a few years? When a recent commercial regarding food (pizza) states following Covid 100K restaurants closed it will deter investment. Haulers, our store is our truck and trailer, predominantly we are our own staff.
The big resolve was to state EIDL and PPP loans through the SBA, but reality is since we sustain damage they become very critical, and decline to assist. Funny the same source paid millions to sit home and do nothing until jobs go unfilled, and many services cease to function. Try getting a meal at a truck stop at 11pm anymore.
Disclaimer: I'm sure many in busier lanes with backhauls still function n prosper well. We focused on expediting to meet specific dealer's needs, they would request faster, we did, and rates did not equal the efforts and effects of doing so. Slower we could have added more backhaul work, and they would miss their 7 day warranties. $1-200 more to haul it faster or buy a vehicle with major issues: a engine, transmission, or undisclosed bent frame? No one wins on low prices.
Larger picture impacts of just 1 less carrier:
I will not need fuel according to the fuel pump sticker $.70 less a gallon taxed 100k miles $10,000 a year
600 vehicles in 2021 hauled, at NYS tax rate of 8% on a average $10k used vehicle $480,000.
It goes on into all we invested in equipment, a location, hiring contractors, and all the jobs at shops, lots, truck stops persons, families, and all they affect. Thousands to register, and operate a single tractor. That's all tax and jobs tied to them. That is only a few examples of just mainly 1 driver, and one small company.
Like any trucking company we have boosted the economy in many ways and a little assistance to recover declined does not make good business sense, to take on high interest cash advance loans to continue, nor does holding out for lowest rates by the dealers as now we cannot support them. Picture how many dealer's used car lots would be empty with 600 less available? That's easy to do as since Covid how many large dealer lots have vast open spaces. 600 used vehicles a year were available because many are trade ins on new vehicles at much higher prices.
We are but 1 and there will be many as were just 2 years ago. Following Covid there were many brand new trailers available.