How to buy a used railcar: a step-by-step guide for shippers and owners

To buy a used railcar, find cars that match your commodity and route, confirm their age, gross rail load and inspection status, inspect them in person (or through a qualified inspector), then negotiate price, delivery and title transfer with the seller.

1. Start from the commodity and the route

The right car is defined by what you ship and where it moves. Before looking at listings, write down:

• Commodity and its density, which decides car type and size (for example cubic feet for a covered hopper, gallons for a tank car).
• Loading and unloading equipment at both ends: gravity outlets, pneumatic outlets, bottom or top unloading, rotary dumpers.
• Weight limits on your route. Many cars are built for a 286,000 lb gross rail load (GRL), but some short lines and industry tracks are limited to 263,000 lb. A 286k car can run lighter on a 263k line, but you lose payload.
• Hazardous materials. Tank cars for regulated commodities must meet a specific DOT specification. See the used tank car checklist.

2. Find the cars

Used freight cars are sold through brokers, lessors returning cars from lease, dealers, auctions and owners selling surplus. Listings are scattered across many sites. RailcarWire collects the public ones weekly: there are currently 151 active listings on the listings page, filterable by car type, plus wanted requests from buyers. Each listing links back to the seller.

3. Check age and remaining service life

Freight cars that run in interchange (on railroads other than their home line) are subject to the Association of American Railroads (AAR) interchange rules, which set a maximum service life based on when the car was built. Under those rules many cars are limited to about 40 years, with some designs and approved programs allowing longer. Check the built date of each car against the current AAR rules before you price it: a cheap car with two years of interchange life left is worth far less than one with fifteen. Cars used only in captive, in-plant service aren't bound by the same limit.

4. Ask for the records

• Built date, builder and car specifications (capacity, GRL, light weight, outlets, lining)
• Last commodity carried, and whether the car has been cleaned
• Recent inspections, repairs and any open defects; for tank cars, qualification dates
• Wheel, brake and coupler condition from a recent mechanical inspection
• Whether cars are currently in storage, on lease, or in service

5. Inspect before you buy

Listings describe cars "as is" more often than not. Inspect a sample of the fleet yourself or hire a qualified railcar inspector or repair shop. Look at the body and underframe for corrosion and damage, the trucks and wheels, the brake system, the coupler and draft gear, and the loading and unloading equipment. Price in any repairs needed before the cars can move loaded.

6. Understand the price

Most freight-car offers say "call for price". When a seller does post a number, it's usually per car, before delivery. Our public price log records every asking price we've seen on a public listing (6 of the current listings post one). Those are asking prices, not sale prices. What a car is really worth depends on age, condition, remaining life, spec, location and the current market for that car type.

7. Close the deal

• Bill of sale and title transfer, including any liens to be released.
• Reporting marks and registration. The car's ownership and reporting marks have to be updated in the industry's car registration system. Your seller, broker or a car management company can handle this.
• Delivery. Agree who pays to move the cars and where title passes. Cars in storage may need inspection and repairs before they can be moved.
• Insurance from the time title passes.

If you're unsure, a railcar broker or car-management firm can run the process for a fee. RailcarWire isn't a broker; we just help you find the cars.

Frequently asked questions