In order to understand how you become an Auto Transport Broker, first you need to know exactly what that means. An Auto Transport Broker is an individual and or company who organizes and arranges carriers to deliver your vehicle. Due to brokers not being held down by any specific company, they are allowed to traverse the wide array of options when it comes to the best option to ship your car. The broker is responsible for making sure the carrier has proper insurance coverage, and that they pick up the vehicle and drop off all in the necessary time parameters.
Now to become a successful Auto Transport Broker you don’t necessarily need to have schooling (degrees or diplomas) in order to be successful, however experience in the industry goes a long way. Not only does knowing the industry go a long way, but also having a background in marketing and sales is not only a major plus but arguably necessary in order for you to reach that next level of your business. With all that being said, even though having expertise in marketing/ sales and also having a background in Auto Transportation will give you the edge, it is not required for you to actually become a broker, the following are all things that you need to start your journey (in no particular order):
1. DOT NUMBER
The number which is used to track safety records of the company
2. INSURANCE
You will not only need to have valid insurance for your business but also liability insurance which protects you from any accidents that may happen during delivery.
3. SURETY BOND
This is basically insurance for your customers, and will protect them from failed deliveries and or damages to their vehicle. The bond usually covers from $5,000 to $10,000.
4. Brokers License
Last but not the least, a broker’s license is mandated by the Federal Motor Carrier Safety Administration in order to operate a profitable auto transportation business in America. This license allows you to operate as a car shipping business legally. After filling out an application and paying a fee, the FMCSA (Federal Motor Carrier Safety Administration) will conduct a background check before moving forward with the application.
These 4 things are very important to the beginning and continuation of your transport business, however these next 2 things will be pivotal to your success:
START UP CAPITAL
Though it could be a lucrative business, there are many different start up costs which are affiliated with starting this brokerage. From paying for the license, and insurance/ bonding to the marketing and potentially hiring of employees, you will need to have some kind of savings in order to be successful.
BUSINESS PLAN
This is a very straight forward entry on this list, having a plan is crucial in this day and age when technology reigns supreme. It will only be in your best interest to have a marketing strategy, projections for your finances and any plans for scaling if that is what you want. Having a plan will also have you plan out things like:
i) Where are you finding potential customers
ii) How are you converting these customers
iii) How will you manage your employees
Source: https://www.a1autotransport.com/how-to-become-an-auto-transport-broker/
