How Cars Are Transported Between Dealerships

Most cars move between dealerships on professional auto carriers—open multi-vehicle trailers for routine shipments and enclosed carriers for high-value models—while some long-haul moves ride rail and short, local transfers are driven by licensed “drive-away” drivers. Dealers arrange these moves through manufacturer logistics networks or third‑party transporters, document condition at pickup and delivery, insure the trip, and reconcile inventory and titles on arrival.

The Main Ways Vehicles Move Between Dealers

Dealers select transport methods based on distance, vehicle value, timing, and weather. The options below reflect the most commonly used modes in the U.S. and many other markets.

• Open car carriers: The industry workhorse; 7–10 vehicles on a two-deck trailer, cost-effective for routine dealer trades and stock moves.
• Enclosed carriers: Boxed trailers protecting from weather and road debris; used for luxury, exotic, or collector vehicles and during severe weather.
• Rail (autoracks): Efficient for long interregional moves; vehicles typically travel plant/port to regional railheads, then finish by truck (“last mile”).
• Drive-away services: Licensed drivers move a car under dealer plates or temp tags for short hops or urgent trades; fastest but adds mileage and road risk.
• Flatbed/tow trucks: Used for single-unit moves over short distances, or when a car is inoperable.
• OEM logistics pipelines: Manufacturer-contracted carriers (e.g., United Road, Jack Cooper, RPM) re-route in-transit or inbound stock directly to another dealer.

In practice, dealers often mix methods—rail or OEM pipelines for long legs and open carriers or drive-away for the last miles—balancing cost, speed, and vehicle protection.

The Typical Dealer Trade or Transfer Process

When one store needs a specific unit another store has—color, trim, or allocation—their teams execute a documented trade. The steps below summarize how the handoff normally works.

1. Locate and agree: Dealer A requests a vehicle; Dealer B accepts a swap or wholesale price.
2. Verify specs and readiness: VIN, options, software level, open recalls, and accessories are confirmed.
3. Paperwork packet: Trade agreement, purchase order or wholesale bill, and instructions for MSO/title handling are prepared.
4. Book transport: OEM network, a brokered carrier via a load board, or in-house fleet is scheduled with pickup/delivery windows.
5. Pre‑ship inspection: High-resolution photos/video and a condition report are completed; odometer and key count recorded.
6. Vehicle prep: Fuel to safe level (or 30–60% SOC for EVs), protective covers applied as needed, alarms disabled, tow/transport mode set.
7. Pickup and documentation: Carrier issues a bill of lading (BOL), notes condition codes, and loads with approved tie-down points.
8. Tracking in transit: GPS pings or carrier updates provide ETA; delays are communicated (weather, traffic, rail dwell).
9. Arrival inspection: Receiving dealer compares condition against BOL/photos, logs any exceptions, and signs delivery.
10. Inventory and delivery prep: DMS/CRM updated, PDI completed, software updates applied, and the vehicle detailed for sale.

This workflow keeps custody clear from store to store, limits disputes about damage, and ensures the car can be retailed quickly on arrival.

Costs and Timing

Pricing and lead times vary by lane, load density, and season. Wholesale dealer-to-dealer rates are lower than consumer retail, but surge during model changeovers and end-of-quarter pushes.

• Typical timelines: Local 50–150 miles often same or next day; regional 200–500 miles in 1–3 days; cross-country 5–10 days, longer if rail is involved.
• Cost drivers: Distance and route density, open vs enclosed, vehicle size/weight, fuel surcharges, metro pickup/delivery complexity, and seasonal demand.
• Ballpark pricing (U.S., 2025): Open multi-car wholesale lanes often range roughly $0.70–$1.20 per mile per unit; enclosed commonly 50–100% higher. Single-unit hot shots cost more.
• Rail considerations: Lower per-mile cost on long routes but add terminal dwell and coordination for last-mile trucking.

Dealers reduce costs by batching loads, using backhauls, and avoiding weekend/holiday pickups that add accessorial fees and delays.

Risk Management and Insurance

Professional carriers mitigate risk with equipment standards and insurance, while dealers document condition to protect both sides. The elements below are standard safeguards.

• Cargo insurance: Carriers carry cargo coverage; dealers should verify policy limits match vehicle values, especially for exotic or EV inventory.
• Open-lot insurance: Covers dealership-owned inventory during loading/unloading; terms vary by policy.
• Bill of lading (BOL): The legal contract of carriage that captures VINs, condition, mileage, and exceptions at pickup and delivery.
• Photo evidence: Time-stamped photos/video at origin and destination minimize disputes about transit damage.
• Tie-down best practices: Use wheel straps or manufacturer-approved points; avoid frame damage on aluminum or composite structures.
• Weather and routing: Carriers may delay or re-route for storms; enclosed transport is recommended for hail-prone seasons or luxury vehicles.
• Claims process: Note damage on the BOL at delivery, take photos immediately, and file within the carrier’s specified window.

With proper documentation and verified insurance, most transfers complete without issue; when damage occurs, clear BOL notes and photos speed resolution.

EV and Specialty Vehicle Considerations

Electric vehicles, performance models, and low-clearance cars require specific handling to protect components and maintain battery health.

• State of charge (SOC): Ship EVs at roughly 30–60% SOC to preserve battery health and leave margin for loading/unloading.
• Transport mode: Engage “transport/tow” or “shipping” mode per the OEM to disable auto-park and preserve 12V systems.
• Charging at arrival: Receiving dealer schedules a charge window to make the car sale-ready and to precondition for PDI.
• Thermal management: In extreme cold or heat, carriers minimize dwell; some EVs maintain battery temp, modestly impacting SOC.
• Clearance and angles: Use longer ramps and race ramps for low-nose or aero-splitter vehicles; enclosed recommended for ultra-low exotics.

Following OEM transport bulletins prevents avoidable issues like 12V drain, warning lights, or cosmetic damage to low-slung bodywork.

Regulations and Documentation

Vehicle transport touches federal and state rules in the U.S., with parallels in other regions. Compliance protects both dealers and carriers.

• Carrier credentials: FMCSA operating authority, valid DOT/MC numbers, and acceptable CSA safety scores.
• Hours-of-service: Drivers must comply with HOS and ELD requirements, which influence pickup times and delivery windows.
• Dealer plates/temp tags: Required for drive-away moves; rules vary by state on who can operate under dealer plates.
• MSO/title handling: For new vehicles, the Manufacturer’s Statement of Origin stays secure; in a trade, it’s reassigned or handled via wholesale documentation.
• Taxes and fees: Sales tax generally applies at retail delivery to the customer’s state, not during dealer-to-dealer transfers.
• International borders: Additional customs brokerage and compliance steps apply for U.S.–Canada or U.S.–Mexico moves.

Upfront verification—carrier authority, insurance, and the correct trade documents—avoids delays, fines, or title headaches later.

When a Car Is Simply Driven Between Stores

For short distances or urgent customer deliveries, dealerships sometimes send staff or contractors to drive the car one way. This method has unique trade-offs.

• Pros: Fastest for same-day needs; flexible scheduling; no loading constraints.
• Cons: Adds mileage, stone-chip risk, and exposure to road incidents; may require fuel reimbursement and temp tags.
• Best practices: Pre/post photos, BOL or transfer sheet, verify insurance, select low-traffic windows, and avoid severe weather.

Driving can be sensible within a metro area, but for anything beyond a short hop, carriers typically offer better protection and economics.

Frequently Used Terms

These common terms help decode the transport process and paperwork dealers and carriers rely on.

• Bill of Lading (BOL): The contract and condition report for the trip.
• MSO (Manufacturer’s Statement of Origin): Proof of ownership for new vehicles before titling.
• PDI (Pre-Delivery Inspection): OEM-required checks before retail delivery, often repeated after transport.
• Dealer Trade/Swap: Agreement where dealers exchange vehicles or sell wholesale to each other.
• Courtesy Delivery: A vehicle is delivered through a local dealer for a customer who bought from a distant dealer.
• Load Board: Marketplace (e.g., Central Dispatch) where carriers and brokers post and accept loads.
• OEM Carrier Networks: Manufacturer-approved transporters such as United Road, Jack Cooper, RPM, ACERTUS, and others.

Knowing the language speeds coordination among sales managers, inventory controllers, and logistics partners.

Summary

Dealers move cars using a blend of open and enclosed trucks, rail for long legs, and occasional drive-away for urgent local needs—coordinated through OEM networks or third-party carriers, with condition reports, insurance, and clear paperwork at every step. Choice of method hinges on distance, value, and timing: open carriers for everyday trades, enclosed for high-value or weather-sensitive units, and rail when cost-efficiency matters over speed. Thorough documentation and EV-specific handling keep transfers smooth and retail-ready on arrival.

How are cars transported to dealerships?

Most vehicles travel by truck at some point during transport, especially during shipments to small-town dealers. These car haulers are usually double-deck trailers that can hold about 12 vehicles. Car haulers have ramps that raise and lower to ensure smooth and quick loading.

Will a dealership ship a car to another dealership?

The simple answer is, yes. One dealership can ship a car to another and vice-versa. Most commonly, you will see this type of situation occur when a new car that a customer wants is not available. Maybe you are looking for a specific color or features that your local dealership will not have that perfect car in stock.

How are cars distributed to dealerships and customers?

Vehicles are transported to and from Vehicle Processing Centers using various methods, including trucking, rail, and sea transport. Trucks are commonly used for shorter distances and final deliveries to dealerships, while trains and ships are used for long-distance and international transport.

Are new cars shipped in containers?

Most vehicles are shipped in either 20-foot or 40-foot containers, with the choice depending on vehicle size, quantity, and whether you’re consolidating with other shipments.