Your possibility of watching a person driving a U-haul truck and pulling his car behind its back is almost impossible because we now live in a world in which billion dollar deals are finalized within a blink of an eye. You don’t need to get into the botheration of transporting your car from one place to another. Here’s where the Auto transport broker comes in. An auto transport brokering business is to act as an intermediary between the auto transport companies and individual buyers and sellers. Trying to deliver your car without auto transport broker can be a painful job and put your money and comfort at stake. It’s a horrible idea to run a business if its auto transport without broker business.. When people use a car shipping broker they accomplish two things first it relieve their stress of getting into the minute details, secondly the auto transport broker makes money. There aren’t many businesses left with the massive potential of making money but in becoming an auto transport broker your story may also become a story of rags to riches. Auto transport broker salary on average is $47000. And it seems like you are lucky today because I will be showing you 16 easy steps which will make it easy for you to ride the bumpy road of car shipping brokerage business.
But the most censorious factor among all which you need to know before starting to plan your business is to secure a “freight broker bond”. So, you need to hold your horses and don’t need to jump start in the auto transport brokerage business instead contact some credible bonding companies. Find if they are willing to pay or finance you and how much you are supposed to pay them. Bond is considered as the first and foremost thing you have to have because if it’s there you are in the business, if not, then you can pack your bags before even starting it.
Choose a business name for your Auto transport broker business:
As we all know about the famous saying “The first impression is the last impression” because the customer will make an impression about your company in his mind by the name, without even giving a microsecond attention to your work or anything else. Choose a unique and catchy name so that you don’t get lost in the shuffle of the inbox. The name should represent the company and should appeal to the customers you want to target.
Integrate your business name:
Choose a legal structure. Will your company be a sole proprietor, an LLC or INC? This is something I would warn you not to skimp on and take the assistance of an attorney plus an accountant. Because how you file, will be the determining factor of how you will file taxes. Upto what extent are you covered or are you even covered or not because this will decide who can sue you and who can’t. Professional help is a must over here!
Get your EIN:
A tax ID also called as an Employee identification number (EIN). Just like you are assigned a Social security number when you are born the same way you have to get your EIN number. This is a win-win situation as you don’t have to give your social to every other organization you work with.
File for your Document of transport (DOT):
The most time-consuming step among all is to to get your DOT. The struggle is real when it comes to DOT authority because it takes about 21 days approximately to get your authority accepted from the Federal Motor Carrier Safety Administration famously known as (FMCSA).
UCR and DOT are bonded together with the. Brokers and carriers both will be asking you for it so you better get prepared.
BOC-3 Process agents:
You may definitely not be able to move to each state all the time so you need to hire process agents who will be receiving documents on your behalf state to state. They are also a vital part of the auto transport brokerage business.
Fulfill your surety bond requirement:
You might get baffled by the amount it requires to start an auto transport brokerage business. Its $75,000 bond, yes you heard it right! If you flunk in fulfilling the requirement of the bond within the time period of 21 days when your application is being processed then it will get rejected. I am sure that the last thing you would like to do is to put your sweat and tears and come to know that you cannot get an auto transport broker license. Which is why form the very beginning you were told to get all the bond related matters straight. You should find a freight broker bond company with a good history which will surely make it a much easier task to get surety bond requirement fulfilled.
Open your business bank account:
After finalizing all the legal ducks in a row, you will need to have a business account separate to your personal account which is a no-brainier when starting a business. An accountant will be your savior in this case.
How to get paid:
You have to choose whether it will be a banks merchant service or a third party form where you will receive the money. Choose a holistic approach and find the “best possible way” among them by weighing in all the options.
When to get paid:
The question of “when” to get paid is equally important as how to get paid. Decide whether you will collect money upfront or on dispatch of the vehicle or pickup of it. You should choose the best option.
Email template for clients:
Your assisting force will be the brokering software which will save your time by not typing mail and again and again. You need to unleash the beast of your “creativity” and jot down templates that make your customers feel delightful.
Here’s where the fun part starts with the business of car shipping brokers, after aligning all the ecosystem of business. Contracts will either make you or break you. Contracts that need to be on your hitlist are broker and client contract and broker and carrier contract.
Sign Up with a good load board:
The load board is an online matching system where freight brokers and shippers are supposed to post their loads it matches people on the basis of several criteria such as message boards and load matching etc. It’s a darn good idea to signup with a load board.
Now since you have paid the price and your sweat for the auto transport brokering business, you should be thinking of making money and always remember “ your net worth is equal to your network”. It means you have to have a good network from every aspect.
Just like before starting a business there will be a brigade of naysayers that will welcome you to your door. They would make a comparison of auto transport broker vs carrier without knowing the facts. Using a car shipping carrier or to become auto transport broker may save you the fees of the broker but the vehicle carrier may add it somehow. You also need to keep in mind that if a vehicle carrier faces a breakdown or delay you will have to start the process of all over again which is very painful. An auto transport without a broker is like a handicapped labor. Its is the need of time. When you are willing to spread the business on a wide level you must not be this frugal to not hire a car shipping broker.