Caravan Drivers are a type of NPC introduced in Titan Quest: Immortal Throne. They are identified by a yellow/green treasure chest symbol above their heads and are usually found in larger towns. The caravan offers additional inventory space as well as the possibility to transfer items between different characters. As such, they take the role of the Stash in other games like Diablo II, Sacred and Torchlight.
The Storage Area can be used to store items, which currently aren't needed by the character. The caravan's inventory initially has a size of 8x5. However, by paying a certain amount of gold, it can be expanded twice, each time by another 8x5 (for a total size of 8x15 = 120). The first expansion costs 100.000 gold, the second one 500.000 gold.
The Transfer Area is an inventory shared by all characters you have installed on the computer. This area can be used to transfer items to other characters or to simply store items you might want to use with future characters. Torchlight has a similar feature called the Shared Stash.
Note, that the Arcane Formula's tooltip doesn't check the Caravan Driver's inventory when looking for any existing ingredients.
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