3 Car Shipping Scams: Red Flags to Watch For and Companies to Avoid
Online auto transport scams happen daily, and the car shipping industry is no exception to the threats posed by scammers. It's important to be aware of potential scams when shipping your vehicle. By recognizing the red flags and knowing how to choose a reputable shipping company, you can protect yourself and ensure your car is transported safely and at a fair price. Keep reading to learn more about the shipping scams and the companies to avoid while partnering.
3 Common Car Shipping Scams
Understanding auto shipping scams will safeguard both your wallet and your vehicle. We have separated the most common car shipping scams:
1. Fly-By-Night Operations
A reliable car shipping company must be registered with the Federal Motor Carrier Safety Administration. And to get that registration, they need to have certain minimum amounts of insurance coverage. Ask for their motor carrier number. If they don’t have one, they’re not legit.
2. Bait and Switch
These companies initially attract customers with incredibly low shipping prices to secure the booking. However, once the contract is signed and the vehicle is in transit, they suddenly announce unexpected price hikes, often citing 'unforeseen difficulties' or 'additional costs.' This tactic forces customers to pay a higher price or risk having their vehicle delayed or abandoned.
3. Fake Reputable Companies
Scammers looking to trick unsuspecting customers will sometimes pretend to be established companies. They’ll create websites or social media profiles using another business’s name and image to attract customers before taking advantage of them.
How to Spot Car Transport Frauds
Car shipping scams can be spotted by focusing on the company’s details. Follow these steps and you will be able to spot fake companies:
Verify the Car Transport Company’s Credentials
Thoroughly check the car transport company’s information. Verify the full company name, including any DBAs (Doing Business As), along with their physical address and phone number. Request their Department of Transportation (DOT) and Motor Carrier (MC) license numbers to confirm they are properly registered. Additionally, assess their consistency and experience in the industry to ensure they have the expertise needed for safe and reliable car shipping.
Read Online Reviews
Finding a reliable vehicle shipping company is simpler when you read online reviews. Look for the company’s ratings on trusted platforms like Google Reviews, Better Business Bureau (BBB), and Trustpilot. Pay attention to the overall average rating, as well as the volume of reviews—the more reviews a company has, the better sense you'll get of its reputation and reliability.
Be Aware of Market Prices
Always check market prices to ensure you're receiving competitive rates. The quote for transporting your car should be clear and transparent. Customer service should be able to provide a detailed breakdown of the charges, terms, and conditions, and be ready to answer any questions you have about the shipping process. Avoid “too good to be true” offers.
Check If Upfront Payment Is Required
Be careful if a shipping company asks for payment upfront, especially before a carrier is even assigned. Fraudulent companies often try to secure money quickly and may pressure you into finalizing the deal without allowing time to think. If you're asked to pay in advance, it's a red flag that the company may be more focused on taking your money than actually shipping your car.
Pay Attention to Transparent Communication
Customer service can tell you a lot about a company. If they're not answering the phone or returning calls, it's a bad sign—move on to a more responsive company. Reliable auto transport companies will be eager to answer your calls and address any questions you may have.
Protect Your Personal Information
It's important to know how a company will keep your personal information secure. This includes everything from your name, address, and phone number to your vehicle’s make, model, and transport type. Make sure the company handling your information takes appropriate steps to protect it.
4 Types of Auto Transport Companies to Avoid
It can be difficult to distinguish a car shipping scam from a legitimate auto transport company. However, by doing thorough research, you can improve your chances of selecting a reputable company to ship your vehicle. Here are some types of auto transport companies to avoid:
Uncertified And Unlicensed Auto Transport Companies
Avoid shipping with auto transport companies that are unlicensed or uncertified, as they may not meet legal and safety standards. Always verify that the company is properly registered with the Federal Motor Carrier Safety Administration (FMCSA) or Department of Transportation (DOT). Ask for proof of their licensing and insurance policies before shipping. If they can’t provide this, it’s a major red flag and could lead to issues with your vehicle’s safety and security during transport.
Companies With Unrealistic Low Prices
Be cautious of auto transport companies offering prices that seem too good to be true. While affordable options are attractive, prices significantly lower than the market average can indicate a bait-and-switch scam. These companies may initially offer a low rate, only to add hidden fees or increase the price once you’ve booked. Always get a detailed quote and clarify all potential charges upfront to avoid surprises.
Companies That Require Quick Decision-Making
Avoid companies that use high-pressure sales tactics. These businesses may rush you into making a decision or try to force you into booking quickly, often creating a sense of urgency. Take your time to review options and ensure you’re comfortable with your choice before booking.
Companies That Ask For Full Payment Upfront
Reliable auto transport companies typically require a deposit, with the balance due upon delivery. If a company demands full payment before pick-up, it could be a sign of a scam, leaving you with little alternative if the service isn’t delivered as promised. Companies requesting payment through digital wallet services like CashApp or Venmo are often red flags for potential fraud.
Red Flags in Car Shipping
Let’s take a look at some common red flags that could indicate a company isn’t the right choice for you.
- Unverifiable Company Information. Be wary of companies that don’t have a professional website, physical address, or verifiable contact details.
- Lack of Transparency. Avoid companies that don’t provide clear, detailed information about their services, pricing, and terms of agreement.
- Poor Communication. Be cautious of companies with poor communication, high-pressure sales tactics, or those that are unresponsive to your questions.
- Unbelievably Low Prices. If a company offers prices that seem much lower than what you’ve seen on the market, it could be a red flag indicating a potential scam.
FAQ on Car Shipping Scams
How Do I Know If the Company is Legit?
To determine if a company is legit, check if they are properly licensed and registered with the appropriate regulatory bodies, like the Federal Motor Carrier Safety Administration (FMCSA) or the Department of Transportation (DOT).
What to Do If I Become a Victim of the Car Shipping Scam?
If you’ve fallen victim to an auto transport scam, immediately contact your bank or credit card company to dispute the transaction and report the fraud. You should also file a complaint with the Federal Motor Carrier Safety Administration (FMCSA) and any other relevant consumer protection agencies to help prevent others from falling for the same scam.
Who is a Trusted Auto Transport Company?
A trusted auto transport company is licensed, insured, and registered with the Federal Motor Carrier Safety Administration (FMCSA) or the Department of Transportation (DOT). They provide clear, transparent pricing, have positive customer reviews, and offer reliable customer service throughout the shipping process.
How Do I Find Reliable Car Shipping Companies?
To find reliable car shipping companies, research customer reviews, check for proper licensing and insurance through the Federal Motor Carrier Safety Administration (FMCSA), and ask for references. Compare quotes from multiple companies and ensure they provide clear terms and transparent pricing before making a decision.
