Car haulers offer options during changing times

В рубриках: Automobile | Автор: admin 14.06.2010

Car Haulers Offer Options During Changing Times

In 2010, several factors are driving up wholesale prices for used cars, with low supply being one of the most significant issues. First, with the interruption of leasing programs in 2008 and 2009 by some OEM captive finance companies, according to Manheim Consulting, the volume of new car leases offered in 2009 hit the lowest level since leasing began in the early 1980’s. Second, in the past two years, automotive manufacturers have reduced the number of guaranteed buy-back (“program”) cars offered to rental companies. The result:  fewer used rental cars and off-lease cars flowing to auction from auto manufacturers and their captive finance companies.

Additionally, the weak economy and tight credit of 2009 pushed new car sales and auto production to the lowest level in 27years, resulting in fewer used car trade-ins. On top of this, some high profile product recalls kept many cars off the market in the first quarter of the year. The combination of all these factors has constrained the supply of quality used cars. Some experts predict used car supply will improve by mid-2011, but with less product available in the very near future, and prices on the rise, used car sales managers must look farther for inventory. More used car dealers and remarketers are searching for late-model inventory from auto auctions far outside their usual 200-500 mile trading area. A first quarter 2010 survey of used car dealers by ShipCarsNow confirmed that auto dealers were increasingly turning to the Internet to find inventory for their lots.

With this information in hand, car haulers are working with used car dealers, remarketers and Internet auto auctions to offer affordable, reliable multimodal auto transportation services that include both truck and rail options. In fact, over 70 percent of all new vehicles sold in the United States are already moved to market by rail so it only makes sense for used car dealers to consider rail for longer distance trading.

With car haulers making both truck and rail options available, used car dealers have the flexibility to use the shipping method that best meets their cost and timing requirements. For instance, if moving over 500 miles, shipping a car by rail rather than truck can often lower auto transport cost by 15-30 percent, helping the used car buyer reach more distant auctions while keeping delivery cost low.

When cars ship by rail through a multimodal car hauler, the process is seamless to the dealer. After the car hauler receives the order online, it dispatches a truck that picks up the cars at their origin location. The vehicles are taken to the nearest rail terminal, loaded and secured inside railcars with wheel chocks and tire straps. Once the train arrives at a rail terminal near the final destination, the vehicles are carefully unloaded and transported via car hauler to the final destination. The entire process is coordinated from end-to-end by the car hauler’s logistics team. Vehicles moved by rail arrive in great condition because they are shipped in fully-enclosed railcars that protect the vehicles from the elements and road debris.

If you are increasingly shopping auto auctions outside your usual trading area to find inventory for your lot, you should consider using an online car hauler that offers low cost rail service as well as truck. Auto dealers should work only with a car hauler with a solid reputation, and one that maintains rigorous quality processes.

In a market where used car prices are on the rise and supply is tight; the recent obstacles are only adding additional challenges for used car dealers. Luckily, auto shipping companies have risen to the occasion. There are now solid, affordable multimodal car hauling solutions that can help dealers deliver cars which meet their customers needs.

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