How Do Dealerships Move Cars Between Dealerships?

More than 76% of Americans use cars to commute today. To meet the consumer demand, car dealerships must efficiently manage their inventory. One of the critical parts of automotive retail operations is auto transport for dealerships. American car dealerships need to move cars between locations to sell them. While shipping a car is not difficult, it comes with some risks and costs.

What Are The Modes Of Auto Transport For Dealerships?

Dealerships use the already established network of car dealer shipping services or brokers who use different modes to move vehicles between locations. These fleet transport solutions mainly depend on the distance covered and the delivery time it takes. The different ways used to move vehicles between dealerships include:

1. Truck Carriers

Truck shipping offers two different car shipping methods for dealerships. These methods depend largely on the needs and budget of the dealerships.

Trucks are the most reliable auto transport for dealerships to move cars within the US. However, ocean shipping takes precedence over any other car-delivering method when it comes to international shipping.

Open Transport

Dealerships choose it when a car can be transported on an open trailer. It is more cost-effective and allows dealerships to move bulk batches of cars at a low cost.

Enclosed Transport

Dealerships choose it when the car needs to be transported on protected and enclosed trailers. Dealerships mostly use it for luxury cars and EV transportation.

Data collected for the image from the 2025 NADA Logistics Report, Central Dispatch Market Data, and FMCSA Carrier Guidelines

2. Shipping By Water

Dealerships leverage ocean freight when it comes to shipping cars internationally. Ocean freight or sea freight transports vehicles using specialized ships or container ships. It is a cost-effective auto transport for dealerships compared to air shipping.

The biggest drawback of ocean freight is the slower transit time. Apart from that, dealerships also dread uncertain ocean conditions as well as other environmental factors. 

RoRo Shipping

RoRo shipping, which means Roll-on/Roll-off, is one of the fleet transport solutions. In this shipping method, vehicles can be driven on and off it as well. It is mainly used to transport vehicles across oceans and sometimes commercial vehicles on shorter routes.

There are different types of RoRo vessels available:

• RoRo ferries
• Cargo ships
• Military Sealift Command vessels

Dealerships prefer RoRo shipping due to its cost and time efficiency.

Container Shipping

Dealerships leverage container shipping for luxury cars. In this type of vehicle delivery for dealerships, cranes are used to place the cars inside the containers and onto the vessel. In contrast to RoRo shipping, this type of shipping is LoLo shipping (Lift-on/Lift-off).

The container shipping method ensures vehicle delivery for dealerships with an enhanced security level and protection for vehicles. The chances of damage during transit are lower than with RoRo shipping. Container shipping methods are more expensive. It allows dealerships to choose more efficient shipping routes as well.

3. Shipping By Air

Air shipping may not be the most preferred mode of vehicle delivery for dealerships. Most cars are transported via ships or trucks. Dealerships do not choose air freight as it is significantly more expensive than road or sea freight. The volume of cars is also smaller, adding to the cost of its rarity. However, this shipping method can be used under special circumstances, including:

• Delivery of a luxury EV or SUV
• Order placed due to the occurrence of an emergency or special event
• For testing purposes or to showcase exotic cars at an event (not applicable for dealerships)

4. Rail Transport

Rail transport is a preferred method for long-distance transit within the United States. Dealerships leverage this type of mode of transportation to deliver large batches of cars to the distribution terminals. However, large trucks are still used for the final delivery of the cars.

Types of Inventory Moved Between Dealerships

Dealerships move different types of inventory to optimize their operations to meet customer demands swiftly. For example, one dealership might need to move a car between locations to ensure another dealership has different options available. In another case, dealerships may have to deliver different accessories or parts of cars as well. 

New And Used Vehicles

Dealerships send and receive new vehicles via different shipping methods all the time. Used cars, on the other hand, are acquired by dealerships through online auctions and other car traders.

Certified Pre-Owned Vehicles & Trade-Ins

Dealerships also move vehicles that are acquired as part of trade deals. Whereas, some dealerships move certified pre-owned (CPO) cars. These cars have been used, and they come with a warranty after passing the manufacturer’s inspections.

Slow-Moving Inventory 

Dealerships move cars that are not selling well in one location to another location. Transporting slow-moving inventory reduces storage costs and increases the chances of sales by mixing the inventory.

What Dealerships Should Do To Ensure Safety And Timely Delivery

These are the actions car dealerships can take to stay ahead of the latest policies and trends in 2025 to ensure no financial losses occur during the transportation:

Always Verify The Credentials

Car dealerships can check the credentials of all car dealer shipping services by checking the USDOT numbers of the carriers, SAFER scores, and the automotive transportation company’s insurance policy before collaborating. Dealerships can also check if it offers liability insurance to cover vehicle damage, theft, and fire damage costs. For luxury cars, dealerships should also consider supplemental insurance in 2025.  

Be Transparent With The Customers

Speed limiters, tariff impact, and the insurance cost factors may increase the delivery cost in 2025. Dealerships can navigate these evolving policies by planning, monitoring adjustments regularly, and complying with the regulations to avoid financial losses.

Parting Words:

There are many fleet transport solutions to move cars between locations for dealerships. Truck and sea freight are the most common modes of vehicle delivery in the United States. In 2025, it is every dealership’s responsibility to learn about the delivery services to give the best customer service.