Let’s say you need to relocate your vehicle and are looking for a trustworthy auto transporter.. You are more likely to end up with a legit, reliable shipping partner if you are already aware of the scenarios you may encounter when dealing with the countless service providers available online.
With the rise of the auto transportation industry, scams have become increasingly prevalent. It is essential to be informed about how to distinguish between a legitimate and reliable auto shipping company and a scam business that uses fraudulent tactics to deceive consumers and steal their money and vehicles by pretending to be a broker or a shipper. Here are some key signs and red flags to look for in a company before confirming your booking.
Bait and Switch Pricing
Most common but easy to spot. Scammers lure consumers with very low prices and then switch to higher prices once the customer is committed. Although there should be no legal or binding agreement at that point, they pretend that one exists. The customer is forced to accept a last-minute price hike.
Pro tip: Avoid prices that seem too low or make you rush into a decision.
Upselling Tactics
Upselling is another common red flag you should avoid. These companies lure customers with attractive initial prices and then increase them, naming it a price adjustment. Though price adjustment is a phenomenon in the transport industry, it is not usually practiced by professional companies as they strive to establish a reputation for price stability.
Pro tip: If your company dodges questions about price stability and avoids discussing what happens if vehicle transport prices rise, you are probably dealing with a scam.
No Legitimate Credentials
A legitimate shipping company should provide you with all the details of its credentials, including:
- Full name of the company, including DBAs (Doing Business As)
- Complete addresses and office locations
- Phone numbers, both local and toll-free
- Department of Transportation (DOT) and Motor Carrier (MC) license numbers
- Insurance policy number and coverage
Pro tip: Check with the Better Business Bureau (BBB) and the Federal Motor Safety Carrier Administration (FMCSA) for further verification of the credentials.
Random Drivers
Professional companies offer expedited car shipping for quick pickups and faster deliveries, but they do not send random drivers to you out of nowhere without prior interaction or information. They provide you with all the details so that you can verify the credentials before you hand over your keys and vehicle to a random driver.
Pro tip: Verify your complete credentials with both the broker and the driver. If they lack a proper background or valid information, it likely indicates a scam. The driver must also fulfill the qualifications set by transportation departments.
Complex Contract Language
An agreement is binding, and you have to abide by it, even if you didn’t read it before signing. Therefore, ensure you go through every term and condition carefully. If it’s vague, ask them to clarify it for you.
Pro tip: If your contract states that your carrier will retain the deposit in case of last-minute cancellation or if the terms are favorable to them, be cautious of the potential consequences.
Bad Customer Reviews
Customers’ feedback and testimonials can give you an overview of the company’s overall performance. Too many negative comments indicate poor performance and low-quality services. If you come across reviews accusing the carrier of scams, excessive damage claims, or a lack of response, feel confident in walking away.
Upfront Deposits
Professional shipping companies don’t require you to pay upfront costs until they assign a specialist driver to pick up your car. If the company you choose asks for non-refundable funds to initiate your shipping, it is a major red flag to avoid. Once you pay a deposit, it will become difficult to start over with a new broker because the upfront costs can go up to $200.
Pro tip: Be cautious of companies that demand full payment upfront or offer untraceable payment methods, such as wire transfers or digital wallet services like CashApp or Venmo.
High-Pressure Sales Tactics
Scammers rush you into making quick decisions by using high-pressure sales techniques. They don’t want to let you explore other options; instead, they overwhelm you with their benefits, discounted offers, and deadlines for those packages. Trustworthy companies allow you adequate time to research, explore, and make an informed decision without any pressure.
Pro tip: Immediate availability for pickup, especially during peak seasons when lead times are typically longer, is one of the indicators of such scam tactics.
Final Thoughts!
Your vehicle is valuable and should not be handed over to someone without a legitimate identity. A car shipping scam can cost you hundreds of dollars or even your vehicle. You should meticulously check who you trust with your car. In a nutshell, you should avoid scams impersonating themselves as professional companies.
They employ various cunning sales techniques, including bait and switch pricing, upselling, full upfront payments, and high-pressure sales tactics. Always verify their credentials, background, safety records, and customer feedback. Scrutinize your agreement terms before signing. If you spot these red flags in a company, you’d better find someone else for your business.
