Blog Post

The Internet simplifies the process of booking a car carrier for your vehicle’s transportation, but it also elevates the risk of encountering auto transport scams. Such scams pose a significant issue, resulting in customers losing money or vehicles, and they tarnish the reputation of legitimate freight companies striving to distinguish themselves from fraudulent car transport operations.

Falling prey to car carrier scams is more common than one might think. Many of these scams operate without ever directly contacting their victims. Customers searching for “shipping near me” or “freight companies near me” online often come across several options. Upon comparing car shipping quotes, they notice one company offering an exceptionally good deal. This company’s prices significantly undercut competitors’, they promise vehicle pickup at the customer’s preferred time, and they claim to operate locally.

At this juncture, customers often overlook the necessity of conducting thorough research on the shipping company, naively trusting they won’t be ensnared in a car shipping scam. They proceed to arrange a pickup and pay for the service directly through the company’s website. However, when the day of shipment arrives, no truck appears to transport the vehicle. Attempts to contact the shipper prove futile, as there’s no response. By then, both the company and the customer’s payment have vanished. Fortunately, there are straightforward measures you can adopt to avoid falling prey to an auto transport scam. Whether it’s scrutinizing the website design or evaluating the conduct of the employees, various red flags can indicate a potential transport scam.

How Do Auto Transport Services Work?

The process begins with obtaining quotes from vehicle carriers. After selecting a company you wish to partner with, you enter into a contract with them. This agreement outlines the service terms, secures a spot for your vehicle on the trailer, and specifies the transport dates.

The transport driver will contact you to schedule a pick-up time, typically providing at least 24 hours’ notice. Upon arrival, you and the driver will conduct a thorough inspection of your vehicle. During this process, the driver will complete a Bill of Lading, documenting the vehicle’s condition and its destination. This document also notes any existing damage, ensuring clarity on whether any damage occurred before or during transport. It’s important to note that the insurance covers only the vehicle itself; personal items left inside are not protected.

There are two primary methods for loading a vehicle onto a trailer: using an open car carrier or an enclosed trailer. Open car carriers feature steep, narrow ramps on which the vehicle must be driven to its position on the trailer. On the other hand, enclosed trailers utilize a lift gate, functioning similarly to an elevator, to load the vehicle. This method ensures the car remains horizontal throughout the process, making it the preferred option for vehicles with low ground clearance or those of significant value, where the risk of loading accidents is a concern. However, due to the higher costs associated with lift gate trailers, opting for this method is more expensive than using an open trailer.

Shipping companies often provide a delivery timeframe that spans several days, offering flexibility to accommodate additional vehicle pickups along their route and enabling drivers to navigate around road hazards and adverse weather conditions. Transporting multiple vehicles simultaneously helps to reduce shipping costs, making it a more economical option to patiently wait for a safer delivery window than to risk damage from a hailstorm just to meet a tight deadline.

The Scam of Auto Car Shippers Without a Shipper: Exposing the Fraudulent Business Website

This scam is particularly easy to execute as the perpetrators don’t require a physical address. By creating a seemingly legitimate website, scammers can persuade potential customers to make a deposit. Once they’ve secured your payment, they disappear without a trace. However, fortunately, there are distinct indicators to suggest that the website in question is not supported by an authentic business.

Scam Prevention Tip #1: Verify Registration with Official Government Agencies

Freight businesses operating interstate must possess a USDOT PIN, Operating Authority, or Motor Carrier Number, all referring to a 7-digit identifier essential for operating within the United States. This requirement is governed by the Federal Motor Carrier Safety Administration (FMSCA), which manages the registry system. Additionally, auto carriers receive a 6-digit MC Docket number from the FMSCA, a detail that should be prominently displayed on the company’s website.

For instance, American Auto Transport prominently displays their docket number at the beginning of their terms of service. Upon obtaining these numbers from the carrier, you can verify them on the FMCSA’s website to ensure the information corresponds accurately. Should the carrier decline to provide their USDOT PIN and MC Docket number, or if the provided PIN and docket number fail to align with the business’s registered information, this discrepancy could be indicative of a scam.

Scam Prevention Tip #2: Verify the Contact Number and Address

Transport companies often communicate via phone because it’s an affordable, easy, and quick method. However, scam businesses might provide a fake address and phone number. It’s crucial to verify the authenticity of the shipping company by calling the provided phone number to ensure it’s operational. Additionally, validating their address through a third-party site, such as Google Maps, can help you pinpoint the business’s location and even view the building through street view. If a company representative hesitates to disclose their motor carrier number, license information, or any other publicly available details, it’s a red flag. Customers should consider it a warning sign and avoid doing business with such entities. Legitimate transport companies typically communicate through emails originating from their official website.

For instance, XYZ Auto Transport will receive an email from support@XYZ.com. Customers should scrutinize any emails that appear suspicious. Additionally, verify the shipping company’s address on their website. If an address is provided, cross-reference it with Google Maps to confirm its authenticity. A legitimate company’s address will be accurately reflected on Google Maps.

Scam Prevention Tip #3: Look Out for Missing or Fake Reviews

Every business experiences fluctuations, indicating that even the top shipping companies will occasionally receive negative online reviews. For instance, American Auto Transport’s ratings on Transport Reviews hold an average of 4 stars. Numerous reputable sites feature reviews of American auto shipping, serving as crucial assets for both legitimate businesses and their customers. These evaluations, penned by former clients, signify the authenticity and reliability of American Auto Transport. The absence of reviews may suggest a company is either newly established or fraudulent. Moreover, exclusively positive, vague, or poorly articulated reviews are likely purchased and signal potential scams.

Scam Prevention Tip #4: Check With the Better Business Bureau

It’s advisable to explore reviews on the Better Business Bureau (BBB) website. Review any grievances filed against the business and note how these issues were addressed. Besides regular business assessments, the BBB offers a dedicated section for accredited vehicle transport services for U.S. carriers, providing valuable insights.

Scam Prevention Tip #5: Avoid Untrackable Payment Methods

Scam websites may request payment for their shipping services through Western Union or Moneygram. These wire transfers are untraceable, allowing recipients to quickly withdraw cash. Be wary of sellers offering goods at significantly lower prices than the market rate, as this is a common scam tactic. Legitimate payment methods typically include credit and debit cards, along with local checks. Reputable companies prefer transactions through bank accounts or PayPal, which are traceable and safer in the event of fraud.

Scam Prevention Tip #6: Avoid Rushing to Secure an Exceptionally Low Price

The kind of broker behind car shipping scams typically provides an attractively low estimate and employs aggressive sales tactics to coerce you into placing a deposit. Once you’ve made this payment, you’re essentially at the broker’s mercy. This issue has grown so prevalent that the Federal Motor Carrier Safety Administration (FMCSA) has issued a consumer advisory.

Unlike scams promising fake auto shipping services, your vehicle will indeed be shipped eventually. Once the broker secures your payment, they’ll search for a trucking company willing to transport your car at the agreed price, after deducting their own fee. Typically, only companies that are either newcomers in the industry or those with such poor reputations that direct dealings are avoided will accept these reduced rates. Even then, it may take the broker several weeks to locate a carrier willing to undertake the job at such a low cost, resulting in delays in your vehicle’s shipment.

Scam Prevention Tip #7: Scam Brokers Lie About Being Brokers

Individuals knowledgeable about vehicle shipping typically prefer to manage their car’s transport directly. However, scam artists exploit this preference by concealing their lack of direct involvement in the shipping process. Often, they maintain minimal or no contact with the actual transport company, leaving you unable to track your vehicle’s journey.

Beware of Hidden and Added Charges: Vehicle Shipping Scams that Compromise Your Car’s Safety or Inflate Costs

When you arrange for shipping and pay your deposit, you might encounter an unexpected issue: the company demands additional fees before they will transport your vehicle, or, in some cases, after they’ve already taken possession of it. If you refuse to pay the extra charges, they threaten to withhold your car. In their quest to offer seemingly low prices, some companies may also omit crucial services, such as carrier insurance, putting your vehicle at risk.

Scam Prevention Tip #8: Read the Contract

Once you’ve identified a trustworthy company, it’s crucial to meticulously review and comprehend every aspect of the shipping agreement. Neglecting to examine the contract’s terms could expose customers to unforeseen fees, ignorance regarding damage policies, reimbursement issues, and more.

To prevent any issues, it’s crucial to meticulously review the transport contract prior to signing. Should you have any inquiries, the company’s representative is obligated to address them. Avoid using their services if they refuse to answer or evade your questions. Be wary of companies demanding payment before dispatching a truck, or those requiring full payment of shipping costs upfront, as these are red flags for auto shipper scams.

Scam Prevention Tip #9: Know the Driver

Transport companies provide customers with the driver’s name and contact details when their services are utilized. This enables customers to verify the legitimacy of the service and confirm delivery details prior to paying a deposit. Access to the driver’s information is crucial for direct communication in case of any delays, enhancing the ability to track shipments effectively.

Direct communication with the driver facilitates easier shipment tracking. Without prior access to this information, shipping companies might levy additional charges to secure a spot on their trucks. In some cases, they may claim a last-minute driver change is necessary, leading to higher fees.

Even when partnering with a reputable shipping company, there could be instances where you might incur additional costs. For instance, if your vehicle fails to start on the day of transport, the driver will need to employ winches and other tools to load the car onto the trailer. This process requires both time and specialized equipment, leading to extra charges.

Scam Prevention Tip #10: Get Photo Evidence for Damage Claims

Before shipping your vehicle, conduct a thorough inspection and capture photographs, even if you have a history with the shipping company. This step simplifies the process of disputing any damage claims. Similarly, if you’re shipping a vehicle bought without viewing it in person, request the seller to take detailed photos. This ensures clarity regarding any damage incurred during shipping upon the vehicle’s arrival.

In conclusion, when seeking shipping services, customers should prioritize established and reputable companies with a proven track record. It’s essential to choose transport companies that possess the necessary licenses, registrations, and insurance, offering quotes that align with market standards. Depending on their preferences, customers can obtain quotes from these companies in person, via phone, or online. Additionally, seeking recommendations from friends or acquaintances who have had successful experiences with shipping companies can be incredibly valuable.

Scam Prevention FAQ