Starting your own business is an exciting journey. Becoming an auto transport broker is even better.
There’s not many businesses you can start that’ll give you the potential to make a massive amount of money straight away. I’ve ran businesses from photography to making throw pillows to running an auto transport company. None of these were as easy as this one, auto transport brokering.
If done right, you can start your business today and make money tomorrow. If done wrong? Well, let’s not go down that path. Use your imagination.
I know you’re thinking, “Well that’s great Ashley, but how do I become an auto transport broker?”
Well today is your lucky day because I am going to share 16 Easy Steps to Become an Auto Transport Broker, the same steps I share with my students in ReloAcademy. (If you’re interested in more detailed steps on how to become an auto transport broker, how to run your business and what to do once you get your first client, head to ReloAcademy.)
But first there’s one step more critical than any of these and that’s finding out if you can secure the freight broker bond. So before you go running to start your new auto transport broker business, you should find and contact a few bonding companies. Find out how much you’ll need to pay and more importantly, if they are willing to finance you. Without the bond, there is no business, so do that first. Then you can follow these 16 steps on how to become an auto transport broker:
1. Choose a business name
Choosing a business name is very important. In fact, most of your potential clients will see your business name before anything else. If you have a name that looks and sounds like everyone else, you will get lost in the shuffle of the inbox.
According to The Radicati Group, their email national survey revealed that in 2014, people received an average of 81 emails per day which included 68 legitimate emails and 13 spam emails.
Imagine having to compete with 80 other emails. This number will be significantly higher if the person fills out one of those get 10 free quotes forms. So choose a name that represents you, your company and that will appeal to the kind of customers you want to attract.
In my case, ReloGeek fit the bill perfectly.
2. Incorporate your business name
Once you have a business name in place, it’s time to get incorporated. Incorporating is basically choosing a legal structure. Whether it’s an LLC, INC or Sole Proprietorship, this is a critical step. In fact, I highly recommend that you talk with both an attorney and an accountant.
Because how you file determines how you’ll file your taxes, how much you’ll pay and what your covered or not covered for if someone decides to sue you/your business, you need professional help.
Don’t skimp here.
3. Get your EIN
An EIN is an employee identification number also called a tax id. Once you’ve decided on a legal structure for your business, you need to get an EIN. Your EIN is what I like to call your business’s social security number.
The same way the government gives you a social security number when you’re born, is the same way you’ll need to apply for one for your business when you start. This is especially helpful as you won’t have to give out your social to every business or corporation you decide to work with.
If you ask me, thats a win win.
4. File for your DOT authority
Moving along. The next step is to file for your DOT authority. This step is the longest step of them all. It takes approximately 21 days to get your authority approved by the FMCSA.
5. UCR Registration
Tying in with the DOT authority is the UCR registration. This is required by both brokers and carriers. So make sure you file for yours.
6. Sign up for your BOC-3 process agents
Your BOC-3 Process agents are designated agents in each state to receive documents on your behalf. This is not a luxury, it’s a requirement. So make sure you get this squared away.
7. Fulfill Your Surety Bond Requirement
The dreaded surety bond! A $75,000 bond is required to become an auto transport broker. If you do not meet this requirement in the 21 day period while your application is being processed for your authority, it will be denied. Although I have this as a step after filing for your authority, it’s important that you shop around and make sure that you can secure the financing needed to satisfy this requirement.
The last thing you want is to invest time and money into becoming an auto transport broker only to find out you can’t procure your freight broker bond. You can find out the company I CURRENTLY recommend over in the auto transport resource section here.
8. Open your business bank account
Once you’ve filed for your authority and you’ve got all your other legal ducks in a row, including your bond, you will need to open a business bank account. I’ve heard of some people using their personal account but I do not recommend it.
You want to make sure you keep your business finances separate from your personal finances. If you transfer money from your personal account to your business account, be sure to mark it as a loan if it’s a loan or a gift if it’s a gift. Again, this is one of those times when I can say an accountant will be your best friend.
The IRS is not your best friend. They are very unforgiving.
9. Payments: Choose merchant service
It’s getting down to the wire. The next step is choosing how you want to get paid. Some people choose to go through their banks merchant service while others choose a third-party. It’s up to you. Just make sure their rates and terms are very clear and that you weigh all your options.
Side note: We are in what Wells Fargo calls a “high risk” business. Don’t be surprised to find out your interest rates are higher than other traditional businesses. Especially if you’re a new business.
10. CRM: Choose a CRM System
Your CRM or customer relationship management system will be your best friend in this business. It’s how you can run your business all by your lonesome without going crazy. Who you choose as your brokering software will set the basis for how hard or easy you make your job. So be sure to choose right.
Right now, your options are JTracker, Auto Broker Dispatch and Carriersoft Megabee.
11. Decide: When you want to be paid from client
You can’t talk about how to become an auto transport broker without talking about the money. When you want to get paid from your clients is just as important as how you will get paid.
Some auto transport brokers get paid upfront while others get paid on dispatch or pickup. It’s your business and its your choice. Choose what works best for you.
12. Start writing email template for clients
Once you know when you’ll get paid, it’s time to craft your email templates. In your brokering software, you’ll notice that you have the ability to save templates so you don’t have to write an email every time.
So take this time to write out your emails. If you get stuck and need ideas or help, be sure to check out the Quote Email Templates or The Follow Up Email Templates in the shop. You’ll get access to copy and paste templates for your business.
13. Contracts
This is one of the most important aspects of your business. Contracts can make or break you. The two most important contracts you’ll need for your business are: the Broker/Client contract and the Broker/Carrier contract. You can find then auto transport broker contracts here.
14. Sign up for Load Board
Now it’s time to sign up for Central Dispatch. Central Dispatch is the number one Load Board for auto transport brokers, carriers and dealers alike. You can not get on Central Dispatch until you have your active authority.
Side note: If you choose JTracker as your CRM, you’ll need to be on Central Dispatch before you can get JTracker.
15. Leads: Sign up for Leads
Now it’s time to sign up for leads. Auto Transport leads is how you will make your money. Can you make money without buying leads? Yes. But I hope you have a really big budget.
Auto transport leads are a great way to get access to potential clients who are looking to ship their car right now. Convert these leads to clients and you’ll make money right away. This is one of the most important parts of what I teach in ReloAcademy. You can find a list of auto transport lead providers I recommend in the auto transport resource section here.
16. Start making connections
Last step in all this? Start making connections. When you start making connections, you start making money. But always remember, you have to be human. More importantly? Be you!
Conclusion:
So there you have it. 16 Easy Steps on How to Become an Auto Transport Broker. The most important thing you will do is laying the foundation.
Think of it as building a house. If the foundation isn’t done right, the house will crumble. If the foundation is strong, you’ll have a house for many years to come. It may not be the prettiest or the most exciting part of building a home, but it’s the most important. Then you get on to the good stuff.
Same thing in your business. Laying the right foundation and getting your legal ducks in a row may not be fun or exciting. Heck, who likes to keep pouring out money? Not me. But once you lay that foundation? You get to move on to the fun stuff. Making clients happy and making money.
This article is very basic at best. Yes you can follow these steps and start your auto transport broker business, but if you are really serious about doing it the smart way? Then head over to ReloAcademy and join the auto transport broker training program.
Now it’s your turn. What’s the hardest part about this process for you? Leave it in the comments below.
106 Responses
Ashley,
I just wanted to thank you for your step by step guide, it was very helpful!
I’m glad you found it helpful!
Your website is very helpful but I have taken the freight broker but I still dont no how to get cars to move. I can communicate with drivers I just dont no how to get the loads off the load boards. Can You Please help?
Are you a ReloAcademy student? If not fill out a contact form by clicking here: ReloGeek.com/contact
Ashley
Hi Ashley,
If your brand new in the auto transport industry is it true you need a database of carriers in order for shippers or large clients to even consider you as their broker or just signing up to central dispatch enough for you to get vehicles moving and shippers to trust you?
Thank you,
Jeff Chacon
p.s ReloAcademy is Great! Very valuable info!
Hey Jeff,
Signing up for central dispatch will be enough to get you started but over time, you need to be building relationships with carriers.
Hope this helps.
Ashley
How much do leads cost and do u past right then and there
The cost of auto transport leads depend on the company you’re buying them through. Before you can buy leads you need to be federally licensed.
Some providers sell leads for as little as $1.25 per lead and others a lot higher. It just depends.
I highly recommend the guys at autotransportbrokerleads.com they have the best quality leads around.
Hope that helps you.
OK good to know thank you
You’re welcome
how do u get a federally license. and how much do it cost
You’ll need to visit the FMCSA website to apply for the license and its about $300. You’ll also need to have your $75k bond on file before you can be approved. Good luck!
Ashley
How much money do I need to start all of this
Hey Leonard thanks for writing in. The answer is it depends. There’s different factors that come into play. How much down payment you’ll need for your bond is the big void that I don’t have an answer for. Some people start with less than $5k others need upwards $10k. My advice, talk to bind companies to see what they’re telling you based on your credit. Then add another $1500 and that’s what you can expect as your start up expenses. ReloAcademy breaks down all of this for you: http://www.reloacademy.com
I noticed there is now a requirement for 3 years of relevant experience required for a brokers license? How is this enforced? Do they check this in the application process? Any loopholes if you do not have the 3 years experience?
Thanks
Brandon
Brandon, as per the FMCSA, as of today, you are not required to have any experience to become a freight broker, freight forwarder or auto transport broker. All you need to do is fill out the application and meet the insurance (bond) and other requirements. But experience is not one of them.
Hope this helps.
Thanks for the quick response Asley.
This is very helpful.
Once I get the pre-approved on the surety bond, I plan on purchasing your program.
Let me know if you have any other questions.
I’m looking to transport cars or RVs from State to state. I drove for the auction in flordia. For. 4 years. I’ve moved to here in mineola tx an looking forward to driving for some one at action I HV current drivers license from Texas an never had a ticket or wreck I’m 48 no kids an not married an ready to start driving again. For some one down here
Just frequent craigslist and other job boards. Also hit the truck stops and talk to drivers. You should be able to find a job easily. Or you can start your own business moving RV’s and cars! Either way, you gotta just start!
Ashley
Hello Ashley! Thank you for all your hard work, your website is awesome!
Do you by any chance know can a foreigner start car shipping broker business in US? Is it necessary to be a US resident to open this kind of business?
Thank you!
As long as you have access to a U.S. address and you’re able to secure bond funding, then I don’t see why not. It is however best to consult with an attorney about the legal ramifications if something was to go wrong in your business.
Ashley, Thank you very much for all the information. It is very helpful. Do I have to pay 75000 dollars for bond in order to start?
You don’t need the full amount to get started. When you contact a bonding company they will tell you how much you need to pay. I highly recommend contacting Diane at pacific financial (their website is pac-fin.com). She will help you get started. 🙂
Thank you for prompt reply, Ashley.
I am thinking to purchase your training package. Are they the same? One is covering little more subjects than the first one, right? Would it cover steps in detailed there?
Hey Susan,
There are two packages because one offers contracts and forms you need for your business while the other doesn’t. Both covers the same materials and both include complimentary leads. If you’re interested, you can join at ReloAcademy.com
Hello AShely,
I learn a lot watching you videos and thank you for sharing so much information. I currently run my own trucking company, my husband and I. We currently cover general freight but I am hoping to get in as a broker. The main question I have is it much easier to get shipper to work with us since we already the carrier? I wanted to start out brokering our own loads while getting the experience. Thanks for your time in advance .
Hello Sherette,
I wouldn’t say it is easier but it depends on whether you are referring to the auto transport industry or general freight. Shippers are looking for someone who will get their work moved without incident and on time. If you can convince them that’s you, that’s all you need.
Now being a carrier has its advantages like being able to find and locate shippers but it’s what you do with that information that matters and sometimes being a carrier can backfire. There’s a stigma about carriers so depending on how you play your cards and your experience, you can help or hurt your new venture.
With auto transport clearly you can leverage your experience. I did.
I hope this helps. Good luck!
Ashley
Hello i had a question about your website & the packages you offer, Do you offer everything i need to know from starting a broker company, i am just trying to start off small in the beginning and don’t want to have to many expectations . i wanted to know if i get all my license and stuff do i just sign up on central dispatch and be able to make money buy using the clients carriers and shippers from that website? or do i have to have my own clients and than post up a ad on central and have a carrier contact me regarding picking up that vehicle etc? if i sign up on central as a broker, how would i be making money? i was a car carrier myself but i am a part time student too and that job has taken a toll on me so wanted to this , please let me know, thank you!
Hello,
Yes, my course teaches you everything you need to know to start and run your auto transport broker business. If you’re interested, head over to ReloAcademy.com. There’s a section on the site that says “Inside the Playbook”. There you’ll find out exactly what’s covered in the course.
Some of the answers to your questions can also be found in my Vault which is free premium content. All you need to do is fill out the form at the top of this page or in the sidebar to your right and you’ll get access to all the free premium content I offer.
Thanks for being here. I’m happy I have the opportunity to become part of your entrepreneurial journey! It’s an honor.
Ashley
Hello, Ashley my cousin and I have just purchased a auto transport truck and 7 car hauler. We will have our authority by the end of the month. I will be handling the central dispatch board for our company and he will be transporting the cars. Eventually I would like to getting into brokering down the line and joining Relogeek academy. At this point of just starting out what would you do yourself to make this a sucess in the first 3 months. All advice is welcome and we truly appreciate all your videos.
Hello Chris,
First of all, CONGRATULATIONS on taking the first step in your entrepreneurial journey and thanks for taking me along with you. It means a lot to me. Now for your question. The key to success is how you book, plan and nurture your clients. Yes you will rely on Central Dispatch, but you need to make relationships with the customers you serve, the brokers you interact with and anybody you come in contact with locally. When I work with carriers, the biggest thing we work on is planning for the future. So be sure everything you do is intentional.
I hope this helps and I wish you much luck and success. Keep us posted on your accomplishments.
Thanks for being part of this amazing community of brokers and carriers all working towards something GREAT!
Ashley
Thank You for the advice. I have been reading your posts and you have provided alot of needed information. I take it since their is a 21 day wait for applying for the FMCSA registration that this business can be started within 30 days?
Hello Waleed,
I am happy that you’ve found the information helpful! I am also forever grateful that you’re allowing me to be part of your auto transport journey. To answer your question, yes, you can have your business up and running in 21 days… Once you’re approved you’re ready to get your first lead. How great is that?
Keep up the great work and I wish you much luck and success on this trek. I’m rooting for you!
Ashley
Ashley, is this a business that a person can do part time ? I have a full time job but I have a interest in this as well.
Hello Kyle. I get asked this question a lot. Yes you can do it part time however you need to make sure you keep your expenses down and that you are making use of every minute of your work time. And choosing the right time to work is key. It won’t be easy but again it is doable.
Ashley
Hi Ashley, On an average what is the cost to run a Auto transport broker business . There is no overhead and 2 reps work from home. What would be the average expense per month.
Hello Denise,
The overhead will include your bond payment (whatever that may be), phone, Internet, brokering software, load board, and whatever other miscellaneous items/bills you have. This could range from a few hundred monthly to a few thousand plus the cost of leads. The best way is to find out how much your bond will be because that’s the bulk of your expenses aside from purchasing leads (which I don’t like to call an expense because you should be making money from it).
Good luck and thanks for being so awesome!
Ashley
I see in one are the Bond is 75000 and in another 5000. Is 5000 a possible down payment?
Hello Mike,
The only bond you need is $75,000, quite possibly the $5k you’re referring to is a downpayment amount. Might I ask where you’ve seen these numbers? This way I can see the context in which they were provided. Thanks for being so awesome!
Ashley
Hi Ashley. Should I take your class first then apply for license and authority or simultaneously??
Good morning. Thanks for being part of the ReloGeek family! To answer your question, I would suggest you finding out if you can secure the bond and if it’s within your budget first. I’ve had a student who took my class first and then realized they couldn’t get the bond. You don’t have to get it, just inquire to make sure you’re ok with the payments. The bond company I recommend is pacific financial. You can talk to Diane, she’s a rockstar. Tell her I sent you and she’ll give you all the info you need. (Her contact info: Diane Yeschenko |
Broker Trust Advisor | Phone: 800-595-2615 ext. 638)
If you’re okay with all the bond stuff and you’re ready to get started, then you can take the course. It’ll guide you through every step you need to do to get started in the industry.
Good luck and thanks for letting me be part of your journey.
Ashley
What are the requirements for being approved? Was your student denied a bond or was it that it was out of budget?
I’m not a bonding agency so I wouldn’t know what every company uses as the requirement for it. However credit and downpayment is a big factor. My advise is to just call around. See how much they quote you and go from there. I always recommend people to Pacific Financial but ultimately the decision is yours. If interested, here’s the info and be sure to tell Diane I sent you! ?
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
PAC-fin.com
Ashley
Quick question, Ashley (apologies if already answered): how much money would need be invested to get started, on average (including insurance)? And how much money would go to monthly costs (leads, tools, any additional services)? Again, on average, for a small, 2-team starting company. Thanks!
Hello Ray,
Thanks for writing in. A majority of your startup costs depends on your bond. So I like to tell everyone to check with a few bonding companies and find out how much you’ll be expected to pay. I like to recommend Pacific Financial (see contact details below), but you can choose whoever you like.
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
Monthly operating costs depends on how many leads you’re buying per month, which brokering software you choose, if you choose to do automatic quoting through them, what other expenses you have.
The point is, in this business no two operating expenses will be the same. To get an idea of either startup costs or operating costs, you’ll need to use the checklist inside the vault and call around to get quotes and calculate your personal costs.
Good luck and stay awesome!
Ashley
hi Ashley I have a question for you do I need to have some special broker license or I need to do the 16 steps that you might ge I need to do this 16 steps that you answered . I used to work for years already on a car hauler and right now I would like to be a broker which is transporting cars .
Hello Ruslan,
Thanks for commenting. You will need to be a licensed freight broker to move cars, unless you work under someone else who’s a licensed broker. The 16 steps are to help you get legally started in this business.
Of course if you want a more systemized training and personal hand holding, I offer step by step detailed lessons on starting and running your broker business along with my personal recommendation for companies to use over at ReloAcademy.com.
Not ready for that? No problem. Just follow these steps and you’ll be on your way to being a licensed broker. Good luck and thanks for allowing me to be part of your entrepreneurial journey.
Cheers to your success!
Ashley
After shipping a vehicle from Texas to Florida recently, I started thinking about become a broker. After 25 years in the airlines working for Delta and Southwest, it’s time to bring my aviation maintenance career to a close. This would be a perfect home based business for semi-retirement. I’d like to bring my daughter on board and have her work with me, so my question is this: Would she need to be licensed by the FMCSA also, or can she work under my license?
Hello Randy!
Welcome aboard. Thanks for writing in. No, she won’t need to be licensed as long as she’s working under your license. She’ll be considered an auto transport agent. Just make sure you consult with an accountant about employee tax and how to file for your corporation so you do it right from the start.
I’m happy to have you here and thanks for allowing me to be part of your family’s journey. 🙂
Ashley
Hi Ashley,
Just wanted to say how much I appreciate all of this excellent content.
I’m a 21 year old female that isn’t currently in school. I have a full time job and have no transporting experience. However my father owns his own carrier company.
I was very interested in getting into this industry and wanted to know if you had any advice on where to start? I’ve been reading all of your posts and was looking into the training program as well.
You’re an inspiration, thank you for kicking butt & creating such a great opportunity for people.
Cheers
Hello Vita,
Thanks for writing us and for the kind words.
My first advice is to sign up for the mailing list if you haven’t already. You’ll get access to the vault where there’s tons of free stuff to get you started. Other than that, there’s the training course over at ReloAcademy.com.
However I suggest that if you’re serious about starting your business, the first thing you need to do is contact bonding companies and see if you can qualify for the bond and afford it.
The company I recommend is pacific financial. See details below:
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
Hope this helps and thanks for allowing me to be part of your journey.
Ashly
Thank you for this post! Do you know of any good freight broker bond companies? I have been looking online and some pop up, but I am wondering if these companies are safe to go through.
Hello Amber,
I highly recommend pacific financial. If you do choose to contact them, tell Diane I sent you.
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
Pac-fin.com
Good luck!
Ashley
Hello Ashley ,
Thank you for your devotion to helping people succeed through quality info and advice.
My situation might be a little complicated than the average person. I started my business as a carrier ,with my own truck and trailer. I secured all my permits including authority and D OT number and other requirements to operate legally . Then the trailer broke down, work stopped and I couldn’t make payments including insurance ; insurance cancelled for non- payment and authority lost and DOT number inactivated.. I secured some funds to start back up but I couldn’t get authority because and didn’t have insurance but I couldn’t get insurance too because I didn’t have authority too. It was an obstacle I couldn’t scale. Sorry about the long story but I just want you know my situation to be able to tell me what you think.
QUESTION
Do I need my DOT number active before I can qualify for bond to pursue auto brokerage business ? Or is it possible to secure bond and use hat leverage to activate my DOT and number and then regain my authority ? As you well know , Authority, insurance and DOT number are inter-related. Is it possible to use the bond to activate DOT number and authority and then get into the process of being a broker?
I’d be very glad to read from you soon
Thanks again.
Peacemeka
Hello Peacemeka,
You will need to apply for a brokering bond. During the 3 week wait for your authority, you’ll need to secure the $75k bond. Operating authority for carriers is different from brokering authorities. You will need two separate companies to operate as a broker and carrier. Hope this helps.
Ashley
How often do you have to renewal the bond 75k yearly ?
Well it depends what you mean by renew. Most people will be on a payment plan so it depends on which one you sign up for. Some are monthly, others annually, and some even quarterly. For more information talk to my girl Diane over at Pacific Financial:
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
Hope this helps. Stay awesome ?
Ashley
Hi,
My name is Gabriel and I am in Guatemala. Me and a friend want to start in this business could you please let us know what we need to do? I saw the 16 steps that you showed but I am unsure if we can or not because we do not have ssn.
Hmm that’s a tricky one. I say contact Diane from Pacific Financial to see if you can get the bond. If you can then you should be able to do the business without one. Or do like most people who are overseas.. they have a friend or family member who are here in the states become a partner in their business.
But definitely reach out to her. You can find her details in the resource section here: relogeek.com/resources
Ashley
Hi Ashley, your truly a blessing sharing all this inside info with us. Thank you.
I’m currently a auto transport company with a few trucks. We tend to get more freight than we can handle so we use central to help us with the rest. Lately we’ve been super busy and using central more. I don’t want to get in trouble with central or anyone else so I’ve been acquiring about getting a broker license. This is how I came across you. So my question is can I use my current us dot number and MC number to broker or do I have to start a new one altogether? One other question, what’s the average take with brokers? Seems nobody’s telling. Lol I normally get no complaints when I quote and sometimes I wonder if I’m to cheap.
And thanks again for all the great work and help.
Matt,
Thanks for writing this. You will get in trouble and can lose your freight authority if they fmcsa finds out you’re doing that. If you’re not a broker you cannot move cars as such. You will need to get a separate license and a separate authority. A brokering authority is different from a trucking authority. You’ll also want to create a separate corporation or entity. Definitely stop what you’re doing while you’re in the clear. If someone on central realizes you’re a carrier and not a broker and decides to report you, this could be tragic for your company. Thanks for asking the question. It’s an important conversation to have.
Ashley
Hello,
As a freight brokerage, can I take on customers with auto shipping needs, or would I need to obtain separate authority with a separate company to operate as an auto transport brokerage?
Thank you!
Hey RT,
Yes if you’re a licensed freight broker you can move cars. The only thing you can’t move is household goods. You’ll need to apply for that license through the FMCSA. Stay awesome.
Ashley
Hi Ashley. If I have a pickup truck with a flatbed or trailer that can carry just one car, are there brokers out there that will hire me to transport just one car? If so, do I still need to be DOT certified? And, if lets say someone (who is not a broker) asks me to haul their car with my pickup truck, and I charge them for it, is this illegal to do?
I would love to answer all of your questions but it would take too much time to write out and so many questions I have for you.
Without leaving you hanging, to answer your question about brokers hiring you, its no biggie. You’re calling brokers or requesting loads from them online. They don’t care if it’s one car or 10. They want that car moved and they want you to be legal. Insurance, license, etc…
However I do advise against a one car setup because you’re more likely losing money and not necessarily making money but that depends on where you’re running. Again I’d have more questions for you to figure out a plan for you and whether it could work. (Although in most cases it won’t be worth your time)
If you want, got to http://www.relogeek.com/Consultations and schedule a one on one strategic consultation. I’d love to go in depth with you and your goals for your business as well as legal requirements.
Ashley
Hi Ashley,
I have just started my research in started an auto transport company. Everything sounded pretty good but I kind of got stuck on the surety bond. I just want to be clear that a 75K surety bond is required for a carrier? If so would I be applying for the surety bond as the business owner or will my driver apply for the surety bond?
The surety bond is for brokers not carriers. As a carrier you need insurance. Making sure you have the right amount of insurance for the type of equipment you’re using. 🙂
Ashley
Hi Ashley,
I have another question. Is the surety bond required for brokers and not carriers?
Surety bond is for brokers not carriers, correct.
Ashley
Hi Ashley, How do they determine if a per son qualifies for a Bond?
Hey Ben,
Hope you’re having a fantastic morning. When you call the bonding companies, they’ll ask a series of questions and usually they run your credit but it’s not the same as they would for say a house or a car. If you want a highly recommended company, check out Pacific Financial. Diane is a rockstar. Well technically they all are but I love me some Diane. See her details below:
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
There’s no obligation to choose them. You can call to find out how much it’ll cost you so you have options.
Stay awesome Ben!
Ashley
Thanks for getting back to me. Really appreciate the info.
Just want to say thank you for all your information. Is a DOT required for just brokering?
Thanks for the kind words Johnnie. I’m not sure I understand your question but yeah you need to have a DOT authority to become a broker. When you apply they’ll give you an MC ad DOT number.
Hope this helps. Stay awesome.
Ashley
Thank you for what you do. It’s awesome.
Other than the surety bond, what insurance coverages should I have and do you recommend an insurance company?
Thanks for being here John. Your surety bond is the only required one unless your city or county requires insurance for your business. You’ll have to check with them. For the bond, I recommend pacific financial.
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
Good luck!
Ashley
What are the price ranges for jt tracker software?
Johnnie,
You’ll have to contact them so they can send over a full pricing sheet.
Ashley
Hi Ashley,
I found your article very helpful! Thank you! I’m new to the industry but have many friends that haul cars. One of my friends recently approached me and asked if I can become his direct broker. He has a fleet of about ten trucks and also drives. He asked if I could build him a site and go direct with the customer. His business is fully insured and so are all the trucks. Would I need to become a licensed broker or can I go without a license if I only use my friend as the shipper? If I do need to become a broker, how hard is it to get a bond? How much money would I need to come up with if my credit score is above 730? Thank you again!
Happy it’s helped you. You would be considered a dispatcher if you’re only finding loads for him. You’ll use his MC number to do so. If you are planning on sharing that work for pay with other companies then you’ll need to become a broker.
The bond is fairly easy to get as long as you have decent credit and the proper funds.
I highly recommend pacific financial. (PAC-fin.com)
Hope this helps.
Ashley
Ashley hello
is there websites to bid on freight and forums to attend to meet potential clients needing cars moved such as mfg, rental agencies
Bob
Potential clients are everywhere. It’s a matter of figuring out which avenue is worth pursuing. As far as bidding on freight, that implies you’re a carrier. If this is true, then in essence you’re bidding on freight when you join sites like uship or central dispatch.
Hope this helps.
Ashley
Thanks so much!!!
Hi Ashley! How are you?
Which companies do you suggest me to get a good bond?? I have great credit score.
Regards,
Thanks for writing in Diego….
For the bond, I recommend pacific financial. Tell my favorite rockstar Diane that I sent you. 🙂
Diane Yeschenko
Broker Trust Advisor
Phone: 800-595-2615 ext. 638
Good luck!
Ashley
Hello, I am confused about the DOT and MC. I don’t understand why i need it. Can you please explain the role of it.
Thank you
Adilya
Hello Adilya. An MC number is your operating authority. It is a number the government gives you that says you have permission to operate. As per the FMCSA, the DOT number is a number given to you for the purpose of “monitoring your company’s safety information”.
When you put in your OP-1 Application, you will be given a temporary MC number that will become permanent once they approve you.
Hope this helps.
Ashley
Hey Ashley, I’m working in a small family-owned auto transport company. As of now we load our trucks from load boards and we are looking to expand and become a broker. How do I get a broker license to be a licensed broker in my state? Also can I use our current company name and DOT information to be a broker and carrier under same name ?
Hello Mike. Thanks for reaching out. You would follow these 16 steps to get your license. Unfortunately you will need to start your brokerage under a separate business name and incorporate it. I always advise my clients that if your trucking company is Abc transport, then ideally you could name your brokerage abc brokerage this way it’s consistent with your current business but satisfies the FMCSA’s rule to have it as a separate entity.
Hope this helps Rockstar. Stay sweet.
Ashley
Thank You Ashley. Can you please advice me about this bond ( Liberty National). I got a quote from them and it was pretty reasonable, but I don’t know if they are reliable.
Thank You
I have no experience with them personally. If they’re giving you a good rate and you trust them, then by all means go with your gut. I always recommend Pacific Financial because with them, I’ve had personal experience. Sorry if it’s no help but I like to recommend companies I know, used, like or trust (or combination there of). ?
Ashley
Ashley,
Sorry to bother again. Do i need to make some kind of a contract that i sign with costumers or how does it work? Also can you recommend some lead companies that are good?
Thank You
Yes you will need a contract for you and your customers and one for you and your car haulers at the very least. Are you new to this business? If so, I would highly recommend you get some kind of auto transport broker training so you don’t make critical mistakes.
As far as leads, as of right now, I love what the guys over at irelo.com are doing. They have very high quality leads and their process from what I see is thorough.
Other companies include:
01 | autotransportbrokerleads.com
02 | leadartisans.com
03 | imoverleads.com
Ashley
With so many brokers buying leads from the same places, is there a waiting list to get leads? Are there more than 10 companies calling each lead?
Hello Tyler!
The leads are in rotation. These companies get so many leads that they’re able to sell them to lots of brokers. The most you’re sharing leads with 9 other brokers but you can buy leads that are only shared with 3 other brokers at most. Hope this helps.
Ashley
Thank you Ashley for answers. I worked as an auto hauling dispatch for a year.
SO i know how it works but i have a lot of questions about brokerage.
Okay cool. Well hope that helps!
Ashley
Thank you Ashley. I have a question. How can I get a contract job with a broker? I have a tow truck along with all the insurances, and DOT numbers. I just can’t happen to find a job in my area since I am pretty new in the business and I don’t know how to apply. If you could give me some advice on how to get a job with a broker
Okay a few things here. You mentioned a tow truck which I would assume you meant a flat bed style? If this is the case and you can haul one or two vehicle with it, then you might be able to ship cars. If you’re talking about a broker for tow truck style services I’m not sure they have them. Whereas if you’re talking about a broker for car shipping services, you can find them on load boards. Now I know nothing about the tow truck business or its requirements but if it’s the same as a regular trucking business, meaning you have a valid authority, then you can get on central dispatch. Start there. Start looking for your loads and that’s how you’ll meet brokers.
Hope this helps as much as it can. I’m not familiar with the tow truck business but might look into it later down the line. Worth exploring. ?♀️
Ashley
Ashley awesome guide, one thing is not clear is would we need to get a 75k bond before we get an answer from DOT in 21 days?
Or do we buy it first and submit it to DOT, and if its not done you don’t get approved?
I shopped around and get quotes from 3500 to 7000+ just don’t want to put up a deposit if for some reason we don’t get approved or delayed.
Can we wait to get approved by DOT first? Already got BOC-3
Don, thanks for coming by. I always recommend shopping for the bond before getting your authority just in case you didn’t like the numbers you were quoted. Since you’ve already got your quotes and Im assuming you are content with your options, now you can follow the rest of the steps. Which means putting in your application with the FMCSA and then securing the bond immediately after (aka the same day) and then waiting to get approved (14-21day wait). Obviously things like filing for your incorporation comes before everything else because you’ll need a legal business name to put on all the paperwork. Hope this helps.
Ashley
I really appreciate you for sharing this useful information.
Thanks for reading!
Ashley
1.Do I need a load board to become a broker
2. How do I start a load board.
3. How do I get people to post freight and accept freight
You don’t need a load board but you’ll need to sign up for one. You definitely don’t need to create one… sounds like you’re becoming a broker? If so, I suggest checking out my course reloacademy:
Shipmorecars.com/reloacademy
Good luck!
Ashley