How to Avoid Car Shipping Scams 2 weeks ago

Car shipping scams are rare but more prevalent in the transportation industry. It is essential for consumers to stay informed about potential fraud since scammers are on a lookout for unsuspecting customers. 

At Sherpa Auto Transport, we prioritize a hassle-free and transparent car shipping experience to build trust.

In this blog, we’ll highlight auto transport scams that commonly take place. We will educate warning signs and practical tips to help you select a legitimate and reliable auto shipping company.

Key Takeaways

• Car shipping scams often involve fraudulent pricing, fake buyers, and phishing attempts to steal personal information.
• To spot a scam, look for red flags such as unusually low quotes, vague communication, and requests for upfront payments via wire transfer.
• The best way to avoid auto transport scams is to research the company, verify licensing, check reviews, and work with a reputable provider like Sherpa Auto Transport.

In This Guide:

• What is a Car Shipping Scam?
• What Are Common Car Shipping Scams?
• How to Tell If You’re Being Scammed
• How To Avoid A Car Shipping Scam?
• How to Verify an Auto Transport Company
• How to Avoid a Car Shipping Scam
• Car Shipping Scam FAQs

What is a Car Shipping Scam?

A car shipping scam occurs when fraudulent transport companies or individuals deceive customers through misleading pricing, fake transactions, or false advertising. 

These scams can lead to financial losses, stolen vehicles, or even identity theft.

Scammers typically pose as auto transport brokers or car buyers, using phishing tactics, fake contracts, or bait-and-switch pricing to exploit unsuspecting customers. 

Knowing the different types of scams can help you recognize and avoid them.

What Are 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 type of scam involves an auto transport company that “baits” customers with very low prices and then “switches” to higher prices once the customer is invested. 

Initially, the auto transport company advertises at a low price to attract customers, only to increase the price after booking. 

They may claim that unexpected fees, fuel costs, or last-minute changes require a higher rate.

Scammers will often push customers to make a quick decision. If a company demands you close a suspiciously good deal, you may want to take your business elsewhere. 

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

In this auto scam, a shipping company locks you into a contract. Still, it later claims your vehicle requires an upgrade—such as enclosed transport or expedited shipping—at an additional cost. 

They might say your vehicle is too valuable for standard transport or that there’s a last-minute carrier cancellation.

The auto transport strives for price stability, which can lead to adjustments after the booking. So, there are legitimate car shipping price adjustments, too. It’s important to distinguish these from the deceptive ones. 

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 people selling their cars online. A “buyer” claims they’ll arrange auto transport and may even offer to cover the shipping cost. They’ll then request banking details, personal information, or an upfront payment for supposed shipping fees. 

In reality, no shipment occurs, and the seller loses their money or personal information to 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.

ProTip: 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 Tell If You’re Being Scammed

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.

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. 

By working with a trusted provider like Sherpa Auto Transport, verifying company credentials, and staying alert to red flags, you can ensure a smooth and secure car shipping experience.

How to Avoid a Car Shipping Scam

Follow these steps to protect yourself from auto scams:

• Verify Licensing: Check if the company is registered with the Federal Motor Carrier Safety Administration (FMCSA) by searching their USDOT number.
• Read Reviews: Look up the company on sites like BBB, Google Reviews, and Trustpilot to see what past customers say.
• Get a Binding Quote: A binding quote guarantees that the price won’t change after booking.
• Avoid Upfront Payments: Never pay the full amount upfront—a deposit is standard, but full prepayment is a red flag.
• Use a Reputable Auto Transport Company: Work with established companies like Sherpa Auto Transport, which offers transparent pricing and guaranteed quotes.

Need help shipping your car? Read more about car shipping costs and cross-country shipping.

Car Shipping Scam FAQs