Every year, hundreds of thousands of employees relocate for work. The moving boxes get sorted, the real estate agent finds a new home, and HR sends over a relocation package. But there’s one critical piece that frequently falls through the cracks: what happens to the employee’s car.
For HR managers coordinating corporate transfers — and for employees navigating the process themselves — vehicle logistics can become an unexpected source of stress, delays, and out-of-pocket costs. Here’s what both sides need to know.
Why Vehicle Logistics Deserve a Line Item in Every Relocation Package
Most corporate relocation packages cover household goods shipping, temporary housing, and travel expenses. Yet vehicle transportation is often treated as an afterthought, lumped under “miscellaneous” or left for the employee to figure out independently.
This is a mistake. Consider the math: an employee relocating from Boston to Phoenix faces a 2,400-mile drive. That’s roughly 36 hours of driving, two to three days of lost productivity, $300–$500 in fuel, hotel stays, meals, and significant wear on the vehicle. For families with two cars, double everything.
When companies include corporate vehicle relocation services as a standard line item, they remove a significant friction point. The employee arrives ready to work, not exhausted from a cross-country road trip.
The Three Models for Handling Employee Vehicle Moves
1. Employee-Managed (Reimbursement Model)
The company provides a lump sum or mileage reimbursement, and the employee handles everything. This offers flexibility but creates inconsistency. Employees unfamiliar with auto transport often overpay or choose unreliable providers.
Best for: Junior-level relocations, short-distance moves under 500 miles.
2. Company-Managed (Centralized Model)
HR or the relocation management company (RMC) contracts directly with a vehicle shipping provider. The employee simply drops off or has their car picked up. This ensures quality control and negotiated rates.
Best for: Executive relocations, high-volume transfer programs, international assignments requiring domestic vehicle movement.
3. Hybrid Model
The company provides a pre-vetted list of approved corporate vehicle relocation services providers, and the employee selects and coordinates. The company reimburses up to a cap.
Best for: Mid-size companies that want consistency without full administrative overhead.
What HR Managers Should Include in the Policy
A well-designed vehicle relocation policy should address:
Eligibility. How many vehicles per employee? Most policies cover one, with executives sometimes approved for two. Define whether leased vehicles qualify — they often require lender authorization before transport.
Covered costs. Specify whether the company pays for door-to-door transport, terminal-to-terminal, or mileage reimbursement. Include whether insurance gaps during transport are covered by the company or the employee’s personal policy.
Timing and coordination. Vehicle shipping typically takes 7–14 days for cross-country moves. HR should coordinate pickup dates so the employee isn’t stranded at either end. Many companies arrange a rental car for the gap period.
Condition documentation. Require a pre-transport vehicle inspection report. Reputable carriers provide these, documenting existing scratches, dents, and mechanical condition. This protects both parties if a damage claim arises.
International considerations. For employees relocating from overseas assignments back to the U.S. (or vice versa), customs, emissions compliance, and port logistics add layers of complexity. These moves typically require specialized freight forwarding.
What Relocating Employees Should Know
If you’re the one moving, here’s practical advice whether your company manages the process or you’re handling it yourself:
Get quotes early. Auto transport pricing fluctuates based on season, route popularity, and carrier availability. January and summer are peak seasons. Request quotes at least 4–6 weeks before your move date.
Understand the difference between open and enclosed transport. Open carriers (the multi-car haulers you see on highways) are the standard and cost-effective option. Enclosed transport costs 40–60% more but makes sense for luxury, classic, or high-value vehicles.
Prepare your vehicle. Remove personal belongings (carriers aren’t insured for contents), ensure the car starts and drives (for loading/unloading), check tire pressure, and document the fuel level. Most carriers ask that you leave about a quarter tank of gas.
Know your insurance coverage. Carriers are required to carry cargo insurance, but coverage limits vary. Check whether your personal auto policy or the company’s corporate policy covers any gap. For high-value vehicles, consider supplemental transit insurance.
Don’t fall for the lowest quote. The auto transport industry has a broker-carrier model similar to freight. Some brokers quote unrealistically low to win the booking, then struggle to find a carrier willing to haul at that price. This leads to delays. Mid-range quotes from established providers tend to be more reliable.
Red Flags to Watch For
Whether you’re an HR manager vetting vendors or an employee choosing a provider, watch for:
- No USDOT or MC number. Legitimate carriers and brokers are registered with the Federal Motor Carrier Safety Administration (FMCSA). Verify registration at safer.fmcsa.dot.gov.
- Large upfront deposits. Standard practice is a small deposit or pay-on-delivery. Anyone demanding full payment upfront before pickup is a risk.
- No written contract. Every shipment should have a bill of lading and a signed order agreement detailing price, pickup/delivery windows, and insurance coverage.
- Vague timelines. Reliable providers give realistic windows. “We’ll pick up sometime this week” isn’t a plan.
Building Vehicle Logistics Into Your Relocation Program
For HR teams looking to improve their relocation experience, adding corporate vehicle relocation services to your program isn’t just a perk — it’s a retention tool. Relocation is already one of the most stressful life events an employee can face. Every logistical burden you remove increases the likelihood they’ll complete the transfer successfully and hit the ground running.
Start by surveying recently relocated employees about their vehicle moving experience. You’ll likely find it’s a bigger pain point than expected. Then work with your RMC or procurement team to negotiate a vehicle transport agreement that can scale across your transfer volume.
The companies that handle relocation well understand that it’s not just about moving stuff — it’s about moving people. And people care about their cars.
