Saturday, December 13, 2008

Car Shipping Tips

Follow this link if you have more questions about the car shipping process.

Millions of cars get shipped around the US each year. This is one of the most economical ways of moving a vehicle across a long distance without creating wear and tear on the vehicle itself.

Here are some helpful tips on locating an honest and reputable transporter and to help you make your move with some education under your belt.

There are 2 factors in car shipping. TIME AND MONEY. If you allow enough time, no matter where the vehicle is being picked up and/or going to, it will eventually get moved so long as the price is right. If you have more time, your broker can probably find a somewhat better price; if you're in a hurry then you should expect to pay more.

How much you pay depends partly on the distance, but also on how close you live to a big city. If the vehicle is being picked up in a rural area or being delivered to a rural area you'll need to pay extra in order to get the carrier to go out of his way. You can usually expect to pay anywhere from $50 - $250 extra for this service.

There are also other factors that affect the cost of shipping:

If a vehicle is inoperable (non-drivable), there is an additional fee for that service of usually $100-$150. That's because with these types of vehicles the carrier needs to be equipped with a winch in order to get the vehicle onto the truck (not all trucks have them). But even if the car doesn't work, most carriers also require that the vehicle rolls, brakes and steers and that it is accessible (not buried in the back of a barn with no way to get it out).

There are 2 main types of car carriers. One is an open carrier (similar to what you see outside of a dealership with new cars on it) and the other is an enclosed carrier. There are more open carriers in the industry then there are enclosed and open carriers are more economical as they can spread the cost of transport across more vehicles (open carrier around 6-10 cars vs. enclosed around 2-6). In addition, enclosed carriers will cost $200-$500 more than an open carrier. Enclosed carriers are more of a "specialty" carrier with higher insurance coverage on their cargo. Open carriers usually have $100-$300k cargo insurance and enclosed is around $150-$1mil depending on the type of trailer and amount of cars it carries.

As there are fewer enclosed carriers in the business, the wait time for pick up with these might take a little longer.

On an open carrier your car would be exposed to the elements just like it would be if you drove it yourself, whereas enclosed it would be protected.

If you are shipping a vehicle that is valued at more than $50K you should seriously consider an enclosed carrier. Also if the vehicle has a custom paint job and/or is lowered with a body kit, enclosed might be your only option, since they are equipped with hydraulic tailgates that can lay flat on the ground ensuring the vehicle can be loaded with low ground clearance.

There are 2 types of enclosed trailers too. The most common is a "hard side" trailer and the other is a "soft side". Soft sides are usually made of a mesh material that can be rolled up or pulled back like a curtain. Hard sided trailers are less susceptible to vandalism or theft. If this matters to you, make sure you specify which type of trailer when arranging for an enclosed transport.

The majority of the industry is made up of "mom and pop" carriers. They may have 1 to 5 trucks in their business and they usually travel along their designated routes. There are thousands of these independent carriers all over the US connecting all routes.

When setting up a transport you will usually deal with a broker (someone who can arrange transports with many different carriers) or a carrier (someone who has their own truck and/or trucks).

Carriers also act as brokers. So IF and I say IF you can locate a carrier directly, there's a good chance he may not travel along your route. That doesn't mean he won't take the job, it just means he will then broker it out to another carrier and pocket the broker's fee himself. When dealing with a carrier directly, ALWAYS clarify whether or not your vehicle will be transported on their truck.

If you deal directly with a carrier, you should get their MC# and a copy of their Insurance Certificate and CALL their insurance broker to verify they are currently insured. All reputable companies will not have a problem doing this. And be sure to verify their MC# is current with the FMCSA. ALL BROKERS AND CARRIERS HAVE TO HAVE AN MC#. You can verify whether or not they are a carrier or a broker here: Federal Motor Carrier Safety Administration. Some brokers will tell you they are a carrier to make you feel better so it is always best to look them up first.

Most commonly you will be dealing with a broker, which has its advantages.
Example:

A carrier with a horrible track record or a revoked MC license might not be forthcoming with that info, whereas a broker's job is to do a thorough background check on any carrier they utilize for transport. That means verifying current insurance and a valid MC license. In most cases they also have access to the carrier's rating within the industry. It works much like the way eBay's rating system does. A broker can see what kind of carrier they are using and make a decision based on that carrier's past performance. A smart broker will not use a carrier with a low rating as it usually translates to an unhappy customer.

As a customer you can also look up a lot of brokers and carriers on a site called Transportreviews.com. Now, don't get scared by the negative reviews. Here are a few things to consider when visiting that site. First, not all of a company's business is represented on this site. Let say a company moves 50 cars a month, they may only get 20% of those customers leaving feedback. And, I know for myself, I'm more willing to take the time to blast a company if I feel I've been wronged than I would for praising them for doing their job. But, this is a good way to see what other customers have to say about that company. If a company has a lot of "they were rude" or "the price was more than quoted" comments or other common themed remarks throughout their feedback, that might be something to seriously consider.

When booking a transport with a company, it is recommended that you DO NOT give an upfront deposit. Most reputable companies will not require an upfront deposit. If a company does require a deposit, always get a copy (in writing) of their cancellation policy and return deposit policy PRIOR to giving your credit card info. If, for whatever reason, they can not or do not get your vehicle moved, you do not want to have to spend your time fighting with a company to get your money back.

Once you've contracted with a broker to move your car, he will post it on a national "load board" where most of the carriers around the US go to get their jobs. On that load board are many other vehicles being offered for transport with the price offered to the carrier listed (the price offered is what you are paying the carrier, less the broker's fee). Most of these prices are within range of each other. Some may be higher as they are more urgent and the customer is willing to pay more to have his vehicle picked up first, but for the most part these prices are within the same range.

Here's a scam to look out for: Let's say you get 5 prices to ship your vehicle. Four of them are within $100.00 of each other, but one of these quotes is $250.00 less than everyone else. "Great!", you think, you'll save $250.00 by going with company "A". You call them, they're very nice and friendly on the phone. They may tell you everything you want to hear and all you need to get started is a $100.00 deposit. What they'll do at this point is post your vehicle for transport on the load board. What you won't see is that it's the cheapest one listed. That pretty much guarantees it will be the last car considered by a carrier, if at all. If the price is too low it won't even be considered and therefore never get moved. You can not force a carrier to move a car. The price needs to be competitive to be worth while for a carrier to do it.

You then call company "A" a week or two later to find out when someone will be out to pick up your car. They may tell you they haven't found a carrier yet, or they had someone, but their truck broke down (trying to buy more time in hopes of a carrier becoming desperate and willing to pick it up), or they have someone, but they need more money. Whatever their story is, the truth of the matter is the car is listed too low and no one will pick it up. Should you decide to cancel at this point you will probably find out your deposit is NON-REFUNDABLE or only a portion of it is refundable. They've now wasted your time and got paid for it.

ALWAYS, ALWAYS, ALWAYS make sure the company offers a 100% return of any upfront deposit in writing prior to giving them your credit card. And watch out for super-low prices unless you don't really care how long it takes to get your car moved.

Broker's fees usually range $100-$200, depending on the size of move and how much work has to go into it. These are fair prices for the cost of doing business as the broker has to provide a bond to be in business, phone lines, office, staff, leads, marketing, etc. Plus they do provide valuable service of weeding through and verifying all the carriers to find and coordinate the best one for your transport.

Here's what to expect once your vehicle has been scheduled for pick up. You will receive a call from the driver or dispatcher to arrange a time to pick up your vehicle on the scheduled date. (It costs the carriers too much money to drive out to someone's house to findout they aren't there, so they should contact you with a time prior to showing up.)

Once there for pick up, they will do an inspection on the vehicle, noting all the pre-existing damage, mileage, etc. You will then sign that inspection report and get a copy. This protects them in the event the vehicle arrives at its destination and the customer doesn't remember that dent in the door or what have you. This also protects the customer in the event that something does happen to the vehicle during transit as this new damage will not be noted on the pre-inspection sheet.

You should always receive your vehicle during the day or in good light so you can inspect it properly. Should you find damage to your vehicle upon delivery, you need to note it on the delivery sheet (bill of lading) along with the driver's signature. This helps when dealing with their insurance company. Never try to get out of paying the driver if there is damage as they will only put the vehicle back on the truck and take it to a storage facility where you will have to pay storage fees until they are paid. It's best just to note the damage on the bill of lading and sign it and then go through their insurance company.

Mind you, millions of cars get shipped around the US each year and most go off without a problem. That doesn't mean it's a perfect industry, but knowing what to do sure makes it a lot easier.

I hope you find this info helpful.