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Auto Transport

Before they ever take their owner for his first ride or go on display in the dealer's showroom, new cars have already done a good bit of traveling. And while it may not show on the odometer, the trip from factory to dealership can be a lucrative one for those firms that specialize in automobile transport.

With the continuing popularity of foreign imports, the auto distribution business involves ocean, rail and highway carriers. It's a hotly competitive industry.

As imports have increased, competing ports have gotten overcrowded, causing unhappy manufacturers to consider moving. Consumers have little recourse when things go wrong because the industry largely falls between the regulatory cracks.

The Federal Highway Administration licenses auto transporters and requires them to carry at least $ 750,000 of insurance covering car carriers, but no regulations govern delivery delays or damage.

For those who are moving their automobiles from one location to another, consumer experts and industry insiders warn customers to choose companies with care and to read contracts closely.

There are more than 1,000 companies nationwide call themselves auto transporters, but many are brokers that farm out the actual hauling to smaller contractors. This system makes delivery dates hard to predict. The person may have eight or nine pickups, so to know exactly when the car will be at the location is almost impossible.

Customers who go through brokers might find themselves chasing strangers to collect on damage claims, since the hauler, not the broker, bears responsibility for damage. The key is to take the time to read the contract. You can save yourself a lot of grief by taking time up front.

Whether domestic, import or export, auto distribution is big business and keenly competitive. And whether port terminals, sea, rail or road carriers, more players are contending for a piece of the action.

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