Shipping a vehicle can be stressful, and unfortunately, the auto transport industry has its share of scams. From fake websites to misleading pricing, car shipping scams are designed to take advantage of unsuspecting customers. Understanding common tactics and knowing how to spot warning signs is crucial to protecting your vehicle and finances.
The Federal Motor Carrier Safety Administration (FMCSA) has reported a significant increase in complaints against auto transporters and brokers for deceptive practices and internet fraud, urging consumers to verify licensing and avoid companies that aren’t properly registered with FMCSA before booking car shipping.
At Sherpa Auto Transport, we help customers navigate the shipping process safely, providing transparent pricing, verified carriers, and reliable service. This guide explains the most common auto transport scams, teaches you how to recognize them, and provides actionable tips for auto transport companies to avoid.
Key Takeaways
- Auto transport scams often involve misleading pricing, fake buyers, and phishing attempts to steal personal information.
- Red flags include unusually low quotes, aggressive upselling, vague communication, and requests for full upfront payments.
- Researching companies, checking DOT registration, and reading verified reviews are the best ways to avoid fraud.
- Choosing reputable providers like Sherpa Auto Transport ensures a secure and stress-free car shipping experience.
In This Guide:
- What is an Auto Transport Scam?
- Common Car Shipping Scams
- How to Spot an Auto Shipping Scam
- How To Avoid A Car Shipping Scam?
- How to Verify an Auto Transport Company
- Bottom Line
- Car Shipping Scam FAQs
What is an Auto Transport Scam?
An auto transport scam occurs when fraudulent companies or individuals mislead customers using deceptive pricing, fake transactions, or false advertising. These scams can result in financial loss, stolen vehicles, or identity theft. Scammers often pose as auto transport brokers or car buyers, using phishing tactics, fake contracts, or bait-and-switch pricing to exploit customers. Being aware of the different types of scams is the first step toward avoiding them.
Common Car Shipping Scams
1. Bait and Switch
One of the most common car shipping scams is bait and switch. Fortunately, it’s easy to spot and avoid. This scam starts with an auto transport company offering an unusually low price to attract customers. After booking, the price suddenly increases, often with claims of unexpected fees, fuel costs, or last-minute changes. Scammers may pressure customers to act quickly, creating a sense of urgency.
Warning Signs:
- An extremely low quote compared to competitors
- The company refuses to provide a written contract
- Sudden price hikes after you’ve made an initial deposit
How to Avoid It:
- Get multiple binding quotes in writing
- Read the fine print before signing any agreement
- Work with reputable companies that have transparent pricing
2. Upsell Auto Transport
Some companies attempt to upsell services after booking, claiming your vehicle requires upgrades such as enclosed transport or expedited shipping at additional cost. While price adjustments can be legitimate, scammers use this tactic to extract extra money unnecessarily.
Warning Signs:
- Aggressive upselling tactics after you’ve already booked
- Claims that your original transport option is unavailable
- Pressure to pay extra fees for services you didn’t request
How to Avoid It:
- Clearly define your shipping requirements before signing a contract
- Ask for all fees upfront to avoid surprise charges
- Choose a company with a price-lock guarantee
3. Fake Buyer Phishing Scam
This scam targets vehicle sellers. A “buyer” offers to handle shipping but requests banking details, personal information, or upfront payment for fake shipping fees. No transport occurs, leaving the seller vulnerable to fraud or identity theft.
Warning Signs:
- A buyer insists on handling shipping themselves
- Requests for wire transfers or prepaid gift cards
- A buyer who refuses to meet in person or provide verifiable contact details
How to Avoid It:
- Use a secure payment method (never wire money to a stranger)
- Verify the buyer’s identity before proceeding
- Arrange your shipping with a reputable company
4. Fake Sellers
Fake sellers are scammers tricking unsuspecting by posing as successful and established firms. These firms create websites or social media profiles using another business’s name and image to lure customers in before taking advantage of them. Scammers also pose as car sellers, advertising vehicles at too-good-to-be-true prices and claiming they’ll ship the car after receiving payment.
In reality, no car exists; once you send the money, it disappears. 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.
Warning Signs:
- The seller refuses to show the car in person
- Requests full payment before shipping
- Uses fake escrow services to appear legitimate
How to Avoid It:
- Only use trusted marketplaces like Autotrader or Cars.com
- Insist on an in-person meeting or video call to verify the car
- Use a legitimate escrow service for secure payments
- Confirm a company’s contact information and identity before doing business with them.
- Verify a company’s legitimacy by looking up its FMCSA or DOT numbers.
How to Spot an Auto Shipping Scam
Ensuring you work with a reliable and trustworthy auto transport company is crucial when shipping a car. Unfortunately, the industry has its fair share of scammers who use deceptive practices to exploit unsuspecting customers. Below are key steps to help you identify scams, verify legitimate transporters, and make informed decisions when selecting an auto transport company. If something feels off, trust your instincts!
Here are some key red flags that signal a potential car shipping scam:
Signs of a Scam
- Too-good-to-be-true pricing (cheaper than all competitors)
- No DOT (Department of Transportation) or FMCSA license
- Lack of company reviews or online presence
- Vague or unprofessional communication
- Demands for complete payment upfront via wire transfer or gift cards
How To Avoid A Car Shipping Scam?
Step 1: Research the Auto Transport Company
Gather essential details about the company before committing to a car shipping service.
- Verify the Company’s Identity: Obtain the full legal name, any DBAs (Doing Business As), office addresses, and both local and toll-free contact numbers.
- Check Licensing and Registration: Ask for the company’s Department of Transportation (DOT) number and Motor Carrier (MC) number, then verify them using the Federal Motor Carrier Safety Administration (FMCSA) database.
- Investigate Complaints and Reviews: Search for complaints on the Better Business Bureau (BBB) and FMCSA websites. Some negative reviews are regular, but it’s a red flag if a company has many complaints or unresolved disputes.
Tip: A company with 100 complaints out of 100,000 customers has a 0.1% complaint rate, which is reasonable. However, frequent unresolved complaints signal poor service.
Step 2: Read Customer Reviews
Customer reviews provide insight into a company’s reputation and service quality.
- Look for Verified Reviews: Focus on customer feedback from platforms like Google Reviews, Trustpilot, and BBB.
- Check for Consistency: A company with thousands of reviews and a high rating is typically more trustworthy than one with a handful of perfect reviews, which may be fake.
Warning: Be cautious of companies with only 5-star reviews and no negative feedback, it may be a sign of fake reviews.
Step 3: Review the Quote and Payment Terms
Legitimate auto transport companies provide transparent pricing and fair payment policies.
- Understand the Pricing Breakdown: The quote should clearly state all fees, terms, and conditions. If a company is vague about pricing, be cautious.
- Avoid Upfront Payments Before a Trucker Is Assigned: Scammers often demand full payment upfront. A reputable company only requires a deposit once a trucker has been assigned, with the remaining balance due upon delivery.
- Watch Out for Hidden Fees: If the price seems too good to be true, it probably is. Some companies use bait-and-switch tactics, offering low initial quotes and adding unexpected charges later.
Step 4: Speak to the Auto Transport Company
Personal interaction can reveal a lot about a company’s legitimacy.
- Test Their Customer Service: A reputable company will answer your calls promptly, respond to emails, and address concerns professionally. Looking elsewhere is best if a company is challenging to reach or avoids questions.
- Trust Your Instincts: If something feels off—such as a pushy salesperson, vague answers, or refusal to provide details.
Tip: A trustworthy company will be open and transparent about its process, pricing, and policies.
Step 5: Protect Your Personal Information
A reputable company will safeguard your details, including:
- Your Name, Address, and Contact Information
- Vehicle Details (Make, Model, VIN, etc.)
- Transport Route and Delivery Details
Legitimate companies verify your identity before discussing your shipment, preventing unauthorized access to your information.
How to Verify an Auto Transport Company
Step 1: Use the FMCSA Website
Visit the FMCSA Company Snapshot Database and enter the company’s DOT or MC number. Ensure the company is registered for vehicle transport (not just for other cargo types like building materials or produce).
Step 2: Check for Proper Insurance Coverage
A legitimate transporter should have adequate insurance to cover vehicle damage during transit. Always ask for proof of insurance and verify the coverage limits, including whether it protects against theft, collision, and natural disasters. Understanding the policy ensures you know exactly what is covered and prevents unexpected financial liability if damage occurs during shipping.
Step 3: Look for a Clear Business Presence
Legitimate companies have a physical address, a professional website, and an active customer service team. Car shipping scams can be costly and stressful, but with careful research and wise decision-making, you can avoid fraud and safely transport your vehicle.
Bottom Line
Car shipping scams can be costly, but with careful research and informed decisions, you can protect your vehicle and money. At Sherpa Auto Transport, we offer verified carriers, binding quotes, and transparent service to make your auto transport experience safe and hassle-free. By staying vigilant, using secure payment methods, and working with trusted providers, you can avoid fraud and ship your vehicle with confidence.
Car Shipping Scam FAQs
Are extremely low car shipping quotes a red flag?
Yes. Quotes that are significantly lower than competitors often indicate bait-and-switch tactics or hidden fees. Always verify pricing and get a binding quote in writing.
What payment methods are safest for car shipping?
Use secure methods such as credit cards or trusted escrow services. Avoid wire transfers or prepaid gift cards to unknown individuals or companies.
What should be included in a legitimate car shipping contract?
A proper contract includes the vehicle details, shipping method, delivery timeline, full pricing breakdown, insurance coverage, and terms of payment. Ensure all fees and contingencies are clearly listed before signing.
