Understanding the Auto Transport Deposit
When you ship a vehicle there are a few things going on that you will need to keep track of. You book your shipment, your broker sets up your order, finds a carrier to ship your vehicle, then you have to wait for pickup, meet the driver, wait for transit, meet the driver for delivery and pay him, and within all that you still have to pay a deposit to the broker for their services.
Brokers do a lot, as mentioned, and without them the auto transport industry would be a much different place. But there’s one thing that sticks in many a customer’s craw, and that is the deposit – namely, why they have to pay it in the first place.
Simply put, a deposit is the price you pay for the broker’s services. It’s no different than using a broker in any other industry, and many times stores are simply brokers for goods – you can’t often buy direct from the manufacturer, after all.
The car shipping industry is much the same way in that you can’t go directly to a carrier for shipping services. Carriers rely on brokers to find them loads since they don’t have time to find customers themselves, and oftentimes the customers they ship vehicles for are only customers because that carrier was one of the closest to them at the time.
A carrier in Iowa won’t book a shipment in California unless they’re going there anyway and they have the time to get there. Brokers will find a carrier in California, or near California, that can pick your vehicle up.
This is why the deposit is important. It keeps brokers in business, and brokers keep carriers in business, and without them the industry would not exist as we know it today (it’d likely be a lot slower, a lot more expensive, and frankly a lot worse for customers).
The deposit is their fee; it covers their operating costs including taxes and payroll and basically keeps them in business. This is also why it’s fairly low, at least when compared to a carrier’s prices.
Brokers can charge customers less for the deposit since they handle multiple orders a day. This lowers the price for your shipment while also making things easier for you. Your auto transport deposit is a vital piece of your car shipping puzzle, and one you don’t want to skimp out on.
If you’re interested in getting a quote to ship a vehicle, fill out our free online quote request form. We don’t take any money until you’re scheduled on a carrier. And, we only work with the best carriers in the industry. We make sure they are fully licensed and insured and top-rated. If you have questions about our services, or want a quote over the phone, you can call us any time at 800-930-7417 to speak to one of our live agents.
Since 2007 Dave has written all the content and blogs for American Auto Shipping and during this time added the duties of customer support and transport logistics.
He currently resides in Washington with his three kids and their mom and cat. A fan of Marvel movies and good stories, when not shipping cars Dave can be found working on his novel, enjoying a good book or playing some tournament HALO.
- When to go with an Enclosed Transport - October 2, 2023
- Understanding California’s EV Mandate - August 1, 2023
- Top Reasons Auto Shippers Are Delayed - January 9, 2023
