How to Avoid Car Shipping Scams: Red Flags to Watch For
Car shipping scams cost consumers millions each year. Learn to identify fraudulent companies, protect your money, and choose legitimate carriers with confidence.
Important Warning
Car shipping scams are increasingly sophisticated. Never pay large deposits upfront or wire money to companies you haven't thoroughly researched. If a deal seems too good to be true, it probably is.
Common Car Shipping Scams
1. The Bait and Switch
Scammers quote an extremely low price to get your business, then demand additional fees once your car is loaded. They may claim unexpected fuel costs, insurance requirements, or route changes.
2. Fake Broker Scams
Fraudulent brokers collect deposits from multiple customers but never arrange actual transport. They often disappear with your money, leaving you without service or recourse.
3. Deposit Scams
Scammers demand large upfront payments (often 50% or more) before providing any service. Legitimate companies typically require only small deposits or payment upon delivery.
4. Non-Existent Company Scams
Criminals create fake websites and phone numbers, posing as legitimate shipping companies. They collect payments but have no actual transport capabilities.
Red Flags to Watch For
Warning Signs
- • Quotes significantly below market rates
- • Demands large upfront payments
- • No physical business address
- • Pressure to sign immediately
- • No DOT or MC numbers
- • Only accepts wire transfers or cash
- • Poor website or no online presence
- • Refuses to provide references
Good Signs
- • Competitive but realistic pricing
- • Small deposit or payment on delivery
- • Verified business address
- • Allows time for decision-making
- • Valid DOT and MC registration
- • Accepts credit cards
- • Professional website and reviews
- • Provides customer references
How to Verify a Legitimate Company
1. Check DOT and MC Numbers
All legitimate car shipping companies must have Department of Transportation (DOT) and Motor Carrier (MC) numbers. Verify these on the FMCSA website.
2. Verify Business Registration
Check with the Better Business Bureau and your state's business registration database to confirm the company exists and is in good standing.
3. Read Reviews Carefully
Look for reviews on multiple platforms (Google, Yelp, Transport Reviews). Be wary of companies with only perfect reviews or very recent review dates.
4. Confirm Insurance Coverage
Request proof of insurance and verify coverage amounts. Legitimate carriers carry substantial liability and cargo insurance.
Protection Strategies
Payment Protection
- Use credit cards: Provides dispute protection and chargeback rights
- Avoid wire transfers: Nearly impossible to recover if scammed
- Limit deposits: Never pay more than 10-20% upfront
- Get receipts: Document all payments and communications
Contract Protection
- Read everything: Understand all terms and conditions
- Get it in writing: Verbal promises mean nothing
- Check cancellation policy: Understand your rights to cancel
- Verify pickup/delivery terms: Confirm exact locations and timeframes
What to Do If You're Scammed
If you believe you've been scammed:
- Contact your bank immediately to stop payments or dispute charges
- File a complaint with the Federal Motor Carrier Safety Administration
- Report to the FTC at reportfraud.ftc.gov
- Contact local law enforcement to file a police report
- Leave reviews to warn other consumers
Questions to Ask Before Hiring
Essential Questions:
- • What are your DOT and MC numbers?
- • Can you provide proof of insurance?
- • What is your physical business address?
- • Can you provide recent customer references?
- • What is your cancellation policy?
- • How much deposit do you require?
- • What payment methods do you accept?
- • What happens if there are delays?
Choosing a Reputable Company
When selecting a car shipping company, prioritize reputation over price. A few hundred dollars saved isn't worth the risk of losing your vehicle or thousands in deposits.
Look for companies with:
- Years of established business history
- Proper licensing and insurance
- Transparent pricing and contracts
- Positive customer reviews and ratings
- Professional customer service
- Clear communication throughout the process
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