Auto transport for a corporate relocation means shipping an employee's vehicle, or a family's vehicles, to a new work location on a truck instead of having the employee drive it. It saves days of travel time, gets the employee to work sooner, and is usually cheaper than paying for mileage, hotels and meals on a long drive. This guide explains how it works for HR teams, relocation managers and transferring employees, including costs, timing, billing and paperwork.
Key takeaways
- Open-carrier shipping usually costs about $500 to $1,900 per vehicle; enclosed usually costs about $800 to $2,900.
- Coast-to-coast transit typically takes 7 to 10 days, so schedule pickup about a week before the employee's start date.
- Shipping usually costs less than a long relocation drive once you count mileage, lodging, meals and lost work days.
- Companies can pay directly, reimburse the employee, or include shipping in a relocation lump sum.
- Employer-paid relocation benefits are generally taxable under current federal law, so involve payroll or a tax advisor.
Why companies ship vehicles instead of paying to drive
When a company moves an employee from Chicago to Phoenix or from Boston to Seattle, someone has to get the car there. Driving it can take three to six days each way. That is time the employee is not working, plus fuel, hotels, meals and wear and tear on the vehicle. For employees with two cars, the problem doubles.
Shipping solves several problems at once:
- Faster start dates: The employee flies to the new city and can begin work while the car is on the road.
- Predictable costs: A written transport quote is easier to budget than open-ended travel expenses.
- Less risk: Fewer long-distance driving days for the employee and family.
- A smoother move: Families can travel together instead of splitting up across two vehicles.
Shipping vs. driving: a cost comparison
The table below compares shipping a midsize car about 2,000 miles with driving it. The driving numbers are rough examples to show how costs add up. Your actual costs will depend on your company's mileage policy, hotel rates and the employee's salary.
| Cost item | Drive the car (example) | Ship the car |
|---|---|---|
| Transport or mileage | Mileage reimbursement for about 2,000 miles | Open carrier, often about $1,100–$1,600 for this distance |
| Hotels | 3–4 nights | None |
| Meals | 4–5 days of per diem | None |
| Lost work time | 3–5 days | Usually none; employee flies |
| Airfare | None | One-way ticket |
| Vehicle wear | 2,000 added miles | Only loading and unloading |
For most long-distance moves, shipping comes out even or ahead once you count the full picture, and it frees up several working days. For short moves under a few hundred miles, driving can still make sense. Get an estimate for your specific route with the car shipping cost calculator.
Planning the timeline
Corporate moves often involve many moving parts: the household goods move, temporary housing, school enrollment and a start date. The car shipment should fit neatly into that plan.
| When | Task |
|---|---|
| 3–4 weeks before start date | Request quotes, confirm vehicles, choose open or enclosed |
| 2–3 weeks before | Book the shipment and confirm billing method |
| 1 week before | Prepare vehicles, collect paperwork, confirm pickup window |
| Pickup day | Inspect with the driver and sign the bill of lading |
| In transit | Track the vehicle; coordinate delivery address |
| Delivery day | Inspect, sign and receive keys |
Typical transit times
Trips under about 500 miles usually take 1 to 3 days. Longer moves take more time, and coast-to-coast trips usually take 7 to 10 days. Many relocation teams schedule pickup a few days before the employee's flight, so the car arrives soon after they settle in. If a start date is fixed and tight, ask about a guaranteed delivery date or expedited car shipping. Same-day pickup is available in most metro areas.
Where to deliver
Door-to-door car shipping is standard. The driver comes as close to the address as safely possible. If the employee is in temporary corporate housing, check whether the building allows a large truck. A nearby store parking lot often works when a street is too narrow.
Billing options for employers
Companies handle vehicle shipping in a few common ways. The right one depends on your relocation policy.
Direct billing
The company books and pays for the shipment directly. This gives HR full control over the vendor, cost and schedule, and the employee does not have to front any money. It works well for companies that relocate people regularly.
Reimbursement
The employee books the shipment and submits the receipt for reimbursement. This is simple to set up but puts the up-front cost on the employee. Give employees clear limits, such as one or two vehicles and open transport unless approved otherwise.
Lump-sum relocation packages
Some companies give a single relocation payment and let the employee decide how to spend it. In that case, the employee chooses whether to ship or drive. Sharing a trusted transport provider is still helpful.
CTS asks for $0 deposit to book, which makes it easier to schedule shipments before a purchase order or reimbursement is processed.
Tax and policy notes
Under current federal tax law, most employees cannot deduct moving expenses, and employer-paid or reimbursed relocation costs are generally treated as taxable income to the employee. Active-duty military members moving on orders are the main exception. Many companies "gross up" relocation payments to cover the added tax.
Tax rules change, and state rules can differ from federal rules. Talk with your payroll team or a tax advisor before you set or change a relocation policy. Military families moving on orders should also see our military car shipping page.
Preparing the vehicle
Share this checklist with transferring employees. A full version lives on our vehicle shipping checklist page.
- Clean the car inside and out so the inspection is accurate.
- Take photos of all sides, the roof, wheels, interior and odometer.
- Remove personal items. Car carriers are not licensed to move household goods, and items in the car are not covered by the carrier's insurance. Pack them with the household move instead.
- Remove toll tags and parking passes so they are not charged during transit.
- Keep about a quarter tank of fuel.
- Check for leaks, tire pressure and battery charge.
- Turn off the alarm or leave instructions.
- Leave one key with the driver and keep the spare.
- Name a contact for pickup and delivery if the employee cannot be there.
Leased and company-owned cars
If the vehicle is leased, check the lease terms. Most leases allow a move between states, but some require notice to the leasing company. For company-owned fleet vehicles, make sure the person releasing the car has authority to sign the bill of lading on the company's behalf.
Registration after the move
When an employee moves to a new state for work, they will usually need to get a new driver's license and register the car there. Deadlines vary by state and are often somewhere around 30 to 90 days after becoming a resident, but some states are stricter. Employees should confirm the exact rules with the new state's motor vehicle agency. Some states also require a safety inspection, emissions test or VIN check before registration.
Our state pages, such as Texas car shipping, include general notes on arriving in a new state.
Moving families and multiple vehicles
Many transfers involve a spouse's car or a teenager's car too. Shipping two or more vehicles together on one booking often lowers the per-vehicle price, especially when they share the same pickup and delivery addresses. If one car is a classic or luxury model, you can ship that one enclosed and the rest on an open carrier.
For employees moving to or from Hawaii, the process includes ocean transport and different paperwork. See Hawaii car shipping for details.
Choosing a transport partner for relocations
Whether you relocate a few people a year or dozens, look for:
- Proper licensing: Brokers and carriers should have active federal operating authority. CTS shipments are arranged by Niki Auto Transport (USDOT 4535689, MC 1799148).
- Insured carriers: Ask for proof of cargo insurance. CTS works with a network of more than 100,000 licensed and insured carriers.
- Clear, written pricing: No surprise fees. The CTS Best Price Guarantee matches or beats a lower written quote.
- Tracking and communication: 24/7 in-transit updates keep both HR and the employee informed.
- A satisfaction promise: CTS backs shipments with a 100% satisfaction or money-back guarantee.
Common relocation mistakes and how to avoid them
Most car-shipping problems during a corporate move come from small planning gaps. Here are the ones relocation teams see most often.
Booking too late
Relocations often get approved on short notice, and the car becomes an afterthought. Waiting until the last week can mean fewer carrier options and higher prices, especially in summer. As soon as a transfer is confirmed, request a quote, even if the exact pickup date is still a little uncertain.
Shipping the car before the employee leaves
Some employees need their car until the day they fly out. Others ship too early and end up renting a car for a week. Talk through the employee's last days in the old city and first days in the new one, then pick a pickup date that covers both. A short rental at one end is sometimes the simplest answer.
Unclear approval for upgrades
If an employee asks for enclosed transport, expedited service or a guaranteed delivery date, who approves the extra cost? Put the answer in your relocation policy. A simple rule, such as "open transport for up to two vehicles unless a manager approves otherwise," prevents back-and-forth during an already busy move.
Skipping the inspection
Busy employees sometimes sign the bill of lading without walking around the car. That makes any later damage claim harder. Remind employees, or their stand-in contact, to inspect the car at both pickup and delivery and to note any issues on the paperwork before signing.
Frequently asked questions
Is it cheaper to ship a car or have the employee drive it?
For long moves, shipping is often similar in cost or cheaper once you include mileage, hotels, meals and lost work days. For short moves of a few hundred miles, driving may cost less.
How far in advance should we book?
Two to three weeks ahead is a good target. Same-day or next-day pickup is often possible in major metros, but booking early gives more carrier choices, especially in summer.
Can the company pay the carrier directly?
Yes. Many employers book and pay for shipments directly so employees do not need to front the cost. Reimbursement and lump-sum options also work.
Can the employee put boxes in the car?
It is not recommended. Car carriers are not licensed to haul household goods, and belongings inside the car are not covered by cargo insurance. Pack items with the household goods mover.
Is employer-paid car shipping taxable?
Under current federal law, employer-paid relocation costs are generally taxable to the employee, with an exception for active-duty military moving on orders. Check with payroll or a tax advisor for your situation.
Planning a transfer for one employee or many? We can set up a simple, repeatable process for your team. Get a free quote for your next relocation.
Updated November 4, 2026