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How Much Do Car Hauling Businesses Make Yearly? [Profit Margin]

Car Hauling Business

Do you want to know how much money car hauling businesses make yearly? If YES, here are 8 factors that determine the profit margin for car hauling businesses. In order to have an idea of the amount a car hauler is expected to make monthly or yearly, you should clearly define the service offerings of a car hauling.

Car hauling companies are part of the automobile towing industry and players in this industry tow light or heavy motor vehicles over short and long distances. Car hauling companies may also provide incidental services, such as storage and emergency road repair services.

How Much Money Do Car Hauling Businesses Make Yearly?

So, with that in mind, we can estimate what a car hauler that offers the services listed above is expected to make, but statistics available shows that a driver with good experience and skills who has a contract to haul new cars for a car maker likely will make between $75,000 and $110,000 a year.

While ZipRecruiter is seeing annual salaries as high as $119,000 and as low as $42,000, the majority of Car Hauler salaries currently range between $59,000 (25th percentile) to $100,000 (75th percentile) across the United States. The average pay range for a Car Hauler varies little (about $41,000), which suggests that regardless of location, there are not many opportunities for increased pay or advancement, even with several years of experience.

It is important to point that there is no one mold-fits-all when it comes to how much a car hauler is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average car hauler can make yearly and these factors are;

8 Factors That Determine How Much Money Car Hauling Businesses Make Yearly

1. The Capacity of the Business

One cannot conveniently state the amount a car hauler is expected to make yearly if you do not know the capacity of the business. As a matter of fact, you can not equate the amount a car hauler that is just starting out in business with a well – established car hauler that offers services such as incidental services, such as storage and emergency road repair et al.

2. The Location the Car Hauler is Covering

The location the car hauler is covering is a major factor that will determine the amount he or she is expected to earn monthly. A key factor that can greatly influence the money a car hauler is expected to make is if he operates in a location where people that can afford his or her service.

The truth is that; you will struggle to make good money as a car hauler if you locate the business in an area filled with people who don’t cars; people that rely on public transport.

A recent report released by IBISWorld shows that industry establishments (car hauling companies) are generally located in regions with relatively high population and vehicle concentrations, notably the Southeast and West regions. The report further stated that the Automobile Towing industry is a needs-based industry and companies typically locate where there is the highest concentration of drivers and a lack of public transportation.

3. The Management Style of the Car Hauler 

Another key factor that will determine the amount a car hauler is expected to make yearly is the management style of the business. Trust me, the results you will get when you are good manager will be far different from what a poor manager will make.

The idea is that a good car hauler business will not just retain their old customers, they will also keep getting new customers especially through recommendations.

4. The Types Additional Services Offered By The Car Hauler

Interestingly, another factor that can influence the amount a car hauler is supposed to make is the types of additional services they are specialized in. For example, it is normal for car haulers to also be engaged in offering storage and emergency road repair services. Any car hauler that offers these additional services will no doubt earn more than a car hauler that only offer basic services.

5. The Business Approach of the Car hauler Business

There are different business approaches that a car hauler can choose from and no doubt it will greatly influence the amount they make monthly and yearly. A car hauler may decide to work alone and he can also decide to partner with other businesses that will recommend clients to them.

It is easier to find car hauler that offers robust services partnering with transportation companies, car dealership business, mechanic garages, car importers and exporters and key players in the automobile industry. In essence, a well – organized car hauling business who works with others will surely make more money than a solo business.

6. The Advertising and Marketing Strategies Adopted by the Car Hauler – Business

Another key factor that will determine the amount a car hauler can make yearly is the advertising and marketing strategies adopted by the management of the business. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more.

But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a car hauler that is engaging in aggressive marketing to make same amount yearly with a car hauler that is passive with its advertising and marketing.

7. The State of the Tow Truck

As expected, if you make use of a brand – new tow truck for your car hauling business, you are expected to spend less on fueling and routine maintenance when compared to making use of fairly used trucks and that will no doubt affect the amount you are expected to make from the business.

The truth is that you don’t need to be a mechanic to know component parts of your tow truck that should be looked into to know when they are due for maintenance. If you are a car hauler or the owner of a tow truck, it’s important to understand preventive maintenance and the purpose it serves.

It is well known fact that when you perform preventive maintenance on your tow truck, the lifespan of truck will be extended. It can also play an important role in sustaining a tow truck’s value in if you want to sell at after a while.

8. The Number of Years the Car hauler is in Business

Lastly, another key factor that will determine the amount a car hauler is expected to make on a yearly basis is the number of years the car hauler is in the industry. This is so because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending clients to you.

For example, in your first fiscal year (FY1) you might make one hundred and twenty thousand dollars (120,000), in your second fiscal year (FY2) you might make one hundred and fifty thousand dollars ($150,000) and in your third fiscal year (FY3) you might make two hundred and fifty thousand dollars ($250,000).

In conclusion, the amount a car hauler will make yearly is strictly dependent on all of the factors listed above and no doubt some of the major factors that counts positively in this line of business are trust, honesty, good relationship management and of course timely and safe delivery.

Once a car hauling company has gained credibility, it is easier for them to go for brand new towing trucks on a long – term leasing contract as against making use of second hand trucks which are usually expensive to maintain due to constant wear and tear.

Estimated Profit Margin of a Car Hauling Business

Privately held general freight trucking companies watch their sales expand in 2017 on average 14.9 percent, while profit margins expanded to 6 percent, compared to the past average of between 2.4 percent and 4 percent over the last six years.