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Car shipping scams are rare but are becoming more prevalent in the transportation industry. That’s why consumers need to be aware of scams and have the knowledge to avoid them. We believe shipping your car should be a worry-free process, and that means being able to trust your chosen transport company. In this blog, we’ll teach you how to avoid car shipping scams and find a reputable auto transporter.
Types of auto transport scams (and how to avoid them)
Bait and switch
A bait and switch is one of the most common scams, but fortunately, it’s easy to spot and avoid. It involves an auto transport company “baiting” customers with very low prices, then switching to a higher price after the customer has become invested in the service. There should be no legally binding contract at this point, but the scammers count on customers being committed and accepting last minute price increases.
To avoid a bait-and-switch scam, watch out for prices that are significantly lower than industry standards. We always say: If a quote seems too good to be true, it probably is. Scammers will often push customers to make a quick decision. If a company is demanding you close a suspiciously good deal, you may want to take your business elsewhere.
Upsell
While the auto transport industry strives for price stability, certain situations can lead to adjustments after booking. In some cases, several factors result in legitimate car shipping price adjustments.
However, it’s important to distinguish these legitimate adjustments from a deceptive practice known as the upsell scam. In this scam, companies lure customers with attractive initial quotes, only to increase the price significantly later in the process, often when the vehicle is already in transit.
Here’s how to spot an upsell scam:
● The price increase comes as a surprise after you’ve already booked and your vehicle has been picked up.
● The company provides vague or unconvincing reasons for the price hike.
● You’re pressured to accept the increased price without a chance to consider your options.
Reputable auto transport companies will be committed to transparency and clear communication. Any necessary changes will be communicated promptly and with a detailed explanation.
Imposter auto transporters
Scammers looking to trick unsuspecting customers will sometimes imitate successful and established companies. They’ll create websites or social media profiles using another business’s name and image to lure customers in before taking advantage of them.
Be sure to confirm a company’s contact information and identity before doing business with them. You can verify a company’s legitimacy by looking up its FMCSA or DOT numbers. Also, be sure that the company is easy to contact and has an available phone number with a responsive custom service team. If a company is hard to reach or does not readily offer a phone number, steer clear.
Look for the auto transport company on the Better Business Bureau and confirm that its website, phone number, and address match what the BBB has listed. You can find the same verified information with the FMCSA Company Snapshot.
Finally, customers should always take notice of the company name on the auto transport truck that comes to pick up their vehicle. The name on the truck should match the name that they’ve been doing with, or the name that the broker gave them if they were working with an auto transport broker. A truck with a different name, or no name at all, is a major red flag.
How to spot car shipping scams and find legit auto transport companies
Gather information on the car transport company
Get all the contact information on your potential car mover, including the full company name including any DBAs (Doing Business As), addresses, and phone numbers (local and toll-free). Ask them for Department of Transportation (DOT) and Motor Carrier (MC) license numbers. Once you have all this information, get online and investigate further. Make sure to check with the Better Business Bureau (BBB) and the Federal Motor Safety Carrier Administration (FMCSA) on complaints filed for the auto transport company you are considering.
Do not get discouraged if you see a history of complaints next to the company’s name. Even a reputable company will have some negative comments. Be sure to compare the number of complaints to the total customers served to see if the percentage is high—even 100 complaints in a year for a company that shipped 100,000 cars represents less than 1%. Also check if the complaints were satisfactorily resolved, as that demonstrates a company’s commitment to customer service.
Read online customer reviews
Reading online reviews is standard practice when buying a product or a service today. Seeing other customers’ recommendations will help you understand the type of service you will receive. Notice the overall average rating that a company has on platforms like Google Reviews—the more reviews the better.
Pay attention to your car moving quote and terms and conditions
The quote for transporting your car across the country should include all the details about moving your car. Your customer service rep should be able to walk you through the charges as well as the terms and conditions and answer any questions you may have in regards to moving your car.
Ask when payment is required (it shouldn’t be before a trucker is assigned)
Companies that are just out for your money will try to get it as quickly as possible. They may ask for payment upfront, sometimes even before a trucker is assigned, and pressure you to close the deal quickly. That’s a red flag.
A reputable car shipping company will only ask for payment after your vehicle has been accepted for transport by a qualified trucker. It’s common for a deposit to be paid when your vehicle has been assigned to a trucker, with the remaining balance due when your vehicle is delivered to its destination.
Talk to the auto moving company
Regardless of the deal you were offered by the car shipping company, you should trust your instincts. So pick up that phone and talk to a rep directly. If the company is not answering the phone or calling you back, scratch that one off your list and move on to a more responsive company. Highly reputable car shipping companies will be happy to answer your call as well as any questions you may have.
Notice how they treat your personal information
Another sign of a trustworthy auto transporter is by how they treat your information. This includes everything from your name, address, and phone number to your vehicle make, model, and transport type. Customer data is one of the most valuable assets to auto transport companies and scammers alike. This information should be closely guarded by both the customer and the company handling it.
A reputable auto transporter will always ask you to verify your identity whenever you contact them about your shipment. This helps ensure that you’re the only person with access to your shipment details, safeguarding it from use by imposters and fraudulent companies.
Auto transport companies to avoid
While researching car shipping services, you’ll likely gather a list of potential companies to consider. Below are some red flags to watch out for when selecting an auto transport company. If the company you’re researching fits into any of these categories, you’re probably better off taking your business somewhere else.
Unregistered auto transport companies
The FMCSA regulates the operation of commercial motor vehicles, including auto transport companies. There are two types of auto transport companies that the FMCSA oversees: carriers and brokers.
Carriers are the companies directly responsible for picking up, transporting, and delivering vehicles. They own the trucks and employ truck drivers who are qualified for auto transport services.
To be registered with the FMCSA, a carrier must meet a number of requirements including:
- Obtaining a Motor Carrier number
- Carrying appropriate insurance coverage
- Complying with safety regulations
- Meeting driver qualification requirements
- Complying with hours of service regulations
Brokers do not own car shipping equipment or employ truck drivers. Instead, they facilitate business between customers and carriers, helping customers find the best solution for their auto transport needs. To verify an auto transport broker, the FMCSA will check:
- Operating authority
- Insurance coverage
- Processing agreements
- Payment practices
- Licensing and financial responsibility
- Consumer protection
- Complaint handling
These checks help protect both customers and carriers and ensure fair business practices.
How to verify a carrier or broker with the FMCSA
You can check the registration status of a company or carrier on the FMCSA website. To look up a company, visit the FMCSA Company Snapshot database and enter the company’s DOT number. A reputable carrier or broker will have its DOT number and/or MC number readily available online or by request. If a company refuses to share its registration number with you, or you find that they are not registered with the FMCSA, look elsewhere for car shipping services.
The database will locate the company and provide an overview of the business, including contact information, operating status, operation classification, and the type of cargo it is qualified to carry. Some carriers will be registered with the FMCSA, but only for commodities like metals, building materials, produce, chemicals, etc. If you’re transporting your vehicle, you’ll want a carrier that is qualified and registered to move motor vehicles.
Companies with extremely low quotes
While everyone appreciates a good deal, be cautious of companies offering quotes significantly lower than the industry average. These unrealistically low prices could be a sign of a bait-and-switch scam, where the company later inflates the price with hidden fees or additional charges.
Companies that pressure you into a quick decision
Both bait-and-switch and upsell scammers often use high-pressure sales tactics to rush you into a decision before you have time to research or compare other options. Legitimate companies will allow you adequate time to consider their services and make an informed choice. Be wary of companies that claim to have immediate availability for pickup, especially during peak seasons when lead times are typically longer.
Companies demanding full payment upfront
Reputable auto transport companies typically require a deposit, with the remaining balance due upon delivery. Avoid companies that demand full payment upfront, especially if they insist on using untraceable payment methods like wire transfers or digital wallet services like CashApp or Venmo. These practices are strong indicators of potential scams.
By being aware of these red flags and conducting thorough research, you can minimize the risk of falling victim to scams or dealing with unreliable auto transport companies. Remember to trust your instincts and choose a company that demonstrates professionalism, transparency, and a commitment to customer satisfaction.
Frequently asked questions:
How do you trust a car transport company?
See if previous customers trusted the auto transport company by checking their rating with the Better Business Bureau (BBB) and reading online customer reviews. A high rating and plenty of positive reviews will tell you that the company is dedicated to customer service and will most likely treat you well.
How do I know if a car shipping company is legit?
If a company you’re considering using doesn’t have proper licensing, don’t use them. All operable car movers must have a Motor Carrier (MC) number, as well as a United States Department of Transportation (USDOT/DOT) number. The USDOT number is a unique classifier that the U.S. Department of Transportation uses to conduct audits and track accidents and safety information. Read how to select the best car shipping company.
Is car shipping safe?
When working with a licensed and bonded company with a solid reputation, shipping your vehicle is very safe. Shipping your vehicle can even be safer than driving it to your destination yourself as you may save time and money and have less wear and tear on your car.
What do I do if I’m the victim of an auto transport scam?
You can report an auto transport scam to the Federal Trade Commission (FTC). The FTC may not be able to resolve your issue, but your report is shared with law enforcers and used to investigate cases of fraud, scams, and bad business practices. You may help someone else avoid using a fraudulent auto transport company in the future.
About Montway Auto Transport
With nearly 20 years of experience and 100,000+ customer reviews, Montway has earned its reputation as a leader in the auto transport industry. We leverage our extensive carrier network to provide the best rates possible in all 50 states, including Alaska and Hawaii. Get started with our instant quote calculator or speak with a shipping advisor at 888-666-8929 to learn more.
