While the Internet simplifies arranging car transport, it also heightens the risk of falling prey to auto transport scams. This issue affects both customers, who may end up losing money or their vehicles, and legitimate freight companies that strive to differentiate themselves from fraudulent operations.

Car carrier scams can be surprisingly easy to fall into. Many of these scams avoid direct contact with their victims. Instead, a customer searches for “car shipping near me” or “freight companies near me” and finds several options. After receiving quotes, they may be drawn to one company offering an unusually low rate, flexible scheduling, and local operations, which may seem like a great deal at first glance.

At this stage, customers often neglect to verify the company’s legitimacy and proceed to schedule a pick-up and pay for the shipment through the company’s website. When the scheduled date arrives, no truck shows up to collect the vehicle. Attempts to contact the company are met with silence, leaving the customer stranded as both their money and the business vanish. Thankfully, there are straightforward measures you can take to avoid auto transport scams. By paying attention to factors such as website design and employee behavior, you can spot several red flags that may indicate a fraudulent operation.

How Do Auto Transport Services Operate?

The process begins with obtaining quotes from vehicle carriers. Once you select a company, you’ll sign a contract outlining the terms of service, the reserved spot for your vehicle on the trailer, and the transport dates.

Before pick-up, the transport driver will contact you to arrange a convenient time, typically giving at least 24 hours’ notice. During pick-up, the driver will inspect your vehicle and complete a Bill of Lading, documenting its condition and destination. Any pre-existing damage will be noted to distinguish it from any damage that may occur during transport. Note that insurance only covers damage to the vehicle itself; personal items inside the car are not insured.

Vehicles can be loaded onto trailers in two ways. Open car carriers use steep, narrow ramps for loading, where the car is driven onto the trailer. Enclosed trailers, on the other hand, feature a lift gate, acting like an elevator. Lift gates keep the vehicle level during loading and unloading, making them ideal for low-clearance or high-value cars. However, lift gate trailers are more expensive than open carriers.

Shipping companies typically provide a delivery window of several days. This flexibility allows them to pick up other vehicles along their route and avoid road hazards and adverse weather. Transporting multiple cars helps keep costs down, and it’s better to wait than to risk damage by rushing through poor conditions.

Without a good understanding of this process, it’s easy to fall for car transport scams. To help you avoid fraudulent practices and ensure you’re dealing with a trustworthy carrier, watch out for these red flags.

Auto Transport Scam: The Fake Business Website:

One of the simplest car transport scams involves creating a fake business website. Scammers can set up a seemingly legitimate site without needing a physical address. They lure customers in, secure a deposit, and then disappear with the money. Fortunately, there are clear signs that a website may not be associated with a real business.

Scam Avoidance Tips

1. Verify Registration with Government Agencies:

Any freight company operating across state lines must have a USDOT PIN, Operating Authority, or Motor Carrier Number—a seven-digit number required for registration in the United States. This system is managed by the Federal Motor Carrier Safety Administration (FMCSA). Additionally, auto carriers are assigned a six-digit MC Docket number by the FMCSA, which should be visible on their website.

For instance, American Auto Transport displays their MC Docket number prominently at the top of their terms of service. Once you obtain these numbers from a carrier, you can verify them on the FMCSA’s website to ensure they are accurate. If a carrier refuses to provide their USDOT PIN or MC Docket number, or if the information does not match the company details, it’s likely a scam.

2. Verify the Phone Number and Address:

Transport companies commonly use phone communication because it’s cost-effective, quick, and straightforward. However, scam businesses often provide fake addresses and phone numbers. To verify legitimacy, call the listed phone number to ensure it connects to the actual shipping company. Additionally, use third-party sites like Google Maps to check the address, which allows you to view the location and the building via street view.

If an employee refuses to provide the motor carrier number, license information, or any other publicly available details, it’s best to avoid doing business with that company. Legitimate transport companies will send emails from their official domain, such as support@XYZ.com for XYZ Auto Transport. Be cautious of emails from suspicious or generic addresses. Also, verify the company’s address listed on their website by searching for it on Google Maps; a legitimate company should have a verifiable address on the map.

3. Steer Clear of Untraceable Payment Methods:

Scam websites often request payment through untraceable methods like Western Union or MoneyGram, which allow for immediate cash withdrawals and lack traceability. Sellers offering prices significantly below market value might be fraudulent. Legitimate companies typically accept payments through credit and debit cards, local checks, or secure platforms like PayPal. Using bank accounts or other traceable payment methods is advisable, as they provide a record that can help in the event of fraud.

4. Verify with the Better Business Bureau:

It’s also important to check reviews on the Better Business Bureau (BBB) website. Look for any complaints filed against the business and see how these issues were addressed. The BBB provides detailed business reports and includes a section for accredited vehicle transport companies operating in the U.S.

5. Watch for Missing or Fake Reviews:

Every business experiences ups and downs, so even reputable shipping companies may have some negative online reviews. For instance, American Auto Transport has an average rating of 4 stars on Transport Reviews, and many credible websites feature reviews for American auto shipping. These reviews, written by past customers, help validate the authenticity and reliability of the company.

If you can’t find any reviews, the business might be new or potentially a scam. Additionally, if you encounter only overly positive reviews that seem generic or poorly written, they may be paid reviews, suggesting the company could be fraudulent.

6. Scam Brokers Pretend Not to Be Brokers:

Since most people prefer to deal directly with the shipping company, scammers will often conceal their role as intermediaries. They may have minimal direct interaction with the actual shipping company, leaving you unable to track your vehicle’s progress.

Another common scam involves hidden or additional charges. After arranging shipping and paying your deposit, you might encounter unexpected demands for extra money before the truck will take your vehicle—or even worse, after it’s already been collected. If you refuse to pay, they may withhold your car. Some scammers also omit essential services, like carrier insurance, to offer a deceptively low price.

7. Review the Contract Carefully:

Once you’ve chosen a reliable company, it’s crucial to carefully read and understand every detail of the shipping contract. Failing to review the terms thoroughly can expose you to unexpected fees, issues with damage claims, and reimbursement problems.

To prevent these issues, always examine the transport contract in detail before signing. If you have any questions, ensure that the company representative provides clear answers. If they avoid your questions or are unresponsive, it’s best to look elsewhere. Additionally, be wary if the company demands full payment or any money before sending a truck; these practices can indicate a potential auto shipping scam.

8. Get to Know the Driver:

Transport companies typically provide the driver’s name and contact information when you book their service. Contacting the driver before paying a deposit helps verify the company’s legitimacy and confirms the delivery arrangements after pickup. Having direct access to the driver is useful for tracking your shipment and addressing any delays.

Without driver information before the truck arrives, the shipping company might fabricate charges to secure a spot on their truck or claim they had to arrange a new driver at the last minute, demanding a higher fee.

Even with a reputable shipping company, there may be situations where additional charges apply. For instance, if your car fails to start on the scheduled day, the driver will need to use winches and other equipment to load it onto the trailer, which incurs extra costs.

9. Gather Photo Evidence for Damage Claims:

Always thoroughly inspect your vehicle and take comprehensive photos before shipping, even if you’ve previously used the company. This documentation will help you contest any damage claims. If you’re shipping a vehicle purchased sight unseen, ask the seller to provide photos as well. This ensures that any damage that appears upon arrival can be clearly attributed to the shipping process.

In summary, when seeking shipping services, choose reputable and established companies with a proven track record. Ensure the company holds the necessary licenses, registration, and insurance, and provides quotes that align with market standards. Customers can request quotes in person, over the phone, or online, and seek recommendations from friends or acquaintances who have successfully used shipping services.