What is Auto Transport Brokers
An auto transport broker is a third-party company, that acts as a middleman between customers and car carriers in car shipping services.
When you need to ship a vehicle from one state to another, and you search on Google for auto transport companies, most of the top-ranked results are auto brokerage companies.
When you contact them, their sales team acts as if they are legitimate auto transport companies, contracts with you, and then finds a trucker through Central Dispatch.
How Does an Auto Shipping Broker Works?
Car hauling companies act as middlemen between customers who want to ship their vehicles and car carriers. Brokers don’t have their trucks or fleets to pick up your vehicle. When you reach out to brokers about shipping your car, their sales team handles your shipment.
First, they negotiate with you about the quote. Once the quote is finalized with you, they transfer your sale to the dispatch team.
Car shipping brokers have relationships with large networks of carriers. Their dispatch team contacts truckers to ship your vehicle.
They negotiate the car shipping cost and try to book carriers at the lowest prices available.
For example, if you want to ship your vehicle from California to Texas, the sales team might give you a quote of $1100 for shipping, which includes all tolls in Texas.
The dispatch team then finds truckers for your shipment. They search for truckers from car hauling companies or post your vehicle on Central Dispatch.
All the new companies posted on Central Dispatch software and truckers hauling on the same route have access to it. They search for loads on the same route from Texas to California and find your posted vehicle.
They contact the brokerage company to negotiate with the carrier for the cost. They might agree with the car carrier to ship the vehicle at $900, saving $200 for you and the carriers.
Benefits of using a vehicle shipping brokerage company: you can get economical quotes because they have a direct relationship with a large network of carriers and also have access to all the load boards, such as Central Dispatch.
Additionally, all the paperwork is the brokerage’s responsibility from pickup to delivery with instant shipping service. The broker allows you to ship cars with personal belongings together up to 100 lbs.
Pros and Cons of Auto Shipping Brokers
Pros
- Flexibility on price
- Relationship with large network of carriers
- Responsible for all the paperwork
- Insure your vehicle’s safety from pickup to delivery
- Check the car carrier company’s credit score and insurance for your vehicle
- Instant car shipping services
Cons
- Brokerage companies demand upfront payment
- They might increase the quote when the vehicle is being picked up
- Some brokerage companies have no USDOT or MC numbers, which might lead to scams
- Some new companies do not provide carrier time because they posted your vehicle at a low price, making it difficult to find a carrier on time.
Can I Use Auto brokerage companies or Not?
Yes, you can go with auto transport companies. First of all, check all the Google reviews, BBB reviews, and Transport reviews. Check the history of companies and how they conduct their business. Also, check the USDOT and MC numbers from FMCSA (Federal Motor Carrier Safety Administration).
If a company fulfills all these criteria, has good ratings, and a clean history, you can use it. Otherwise, try to find another auto transport company.
Note: Most brokerage companies offer you a low quote to attract you, but at the time of delivery, they may demand extra costs ranging from $100 to $200 for shipping.
Therefore, first, get a free quote by using our car shipping cost calculator. When you receive an estimate about shipping and reach out to a brokerage company, you can gauge their reliability based on the quote they provide. If the quote seems too low, you should thoroughly check the history of this company.
How to Avoid Auto Transport Brokerage Scams
Most cases reported against auto transport companies scams from 2023-2024 involve people getting scammed by auto brokerage companies. When you reach out to auto brokerage companies, they will ask when you want to ship your vehicle and guarantee an exact delivery date.
However, many factors impact pickup and delivery dates. Some companies guarantee pickup dates at a low price but fail to arrange a trucker on the given date once they receive the upfront payment.
Therefore, don’t pay upfront to any brokerage or car shipping company. Most companies demand upfront payment for carrier booking on your desired date.
Once you’ve paid in advance, many brokerage companies might increase the quote at pickup time, and some may block you and scam you with no insurance coverage or MC records.
Noted: Most brokerage companies offer you a low quote to attract you, but at the time of delivery, they may demand an extra cost of $100 to $200 for shipping. Therefore, first, get a free quote by using our car shipping cost calculator. When you receive an estimate about shipping and reach out to a brokerage company, you can gauge their reliability based on the quote they provide. If the quote seems too low, you should thoroughly check the history of this company.