When you think of car shipping, the first thing that comes to mind is to maybe loan a car, or contact a used car dealer. The second thing that comes to mind is probably something like “Don’t be stupid, this won’t happen to you!” Thankfully, there are ways to avoid common car shipping scams. If your concern is safety and loyalty from the carriers, then read on.
Which Shipper to Avoid?
Typically, when a car owner contacts a car carrier to order a car, the first question the driver will ask is, “Will this be a Shipper to the carrier?”. When a car owner orders a car, they are ordering it directly from the car manufacturer. The car manufacturer calls the company that makes the car the shipper, and the shipper calls the manufacturer the shipper. (If you’re ordering from a third party, like a dealer or a car salvage yard, the car owner will be responsible for all costs associated with the shipment of the car from the shipper to their location.) Depending on the terms and conditions of the contract, the car manufacturer may pay the shipper for the right to sell the car to the owners and avoid common car shipping scams. It’s also possible for the car owner to pay the shipper for the right to purchase the car later.
Some of the most common types of scams are as follows:
- Not called for – The car was supposed to be delivered the next day.
- Exclusive – The car was supposed to be delivered exclusively to the owner.
- Overtime – The car was supposed to be delivered at a certain speed.
- Custom – The car is custom-built for the individual customer. Note that the common scammers are small, independent-minded individuals who are looking to make a quick profit by scamming friendly, unsuspecting customers.
What Are the Common Scams in Car Shipping?
There are a few things to watch out for when shopping around for a new car, especially if you’re the type who always seems to have a problem with credit scores.
Consider these to avoid common car shipping scams:
- Sell-by – The car was sold to an unsuspecting customer for a lower price than what was listed on the contract. This usually happens when a car is listed for a low price but is later found to have a higher price than what was paid.
- Refinance – A lender refinances a loan to make it less profitable. In some cases, the loan amount will be higher than the amount owed, and the lender will require the car to be paid back in full.
- Refinancing – A lender or spreadsheet-based software company will refinance a loan to lower the actual loan amount and make it unprofitable. In some cases, the lender will require the car to be paid back in full.
Don’t Be Untrustworthy and Unreliable
A suspicious person shows up to a transaction without any personal information or the proper documents. Typically, these individuals are looking to make a quick profit by scamming people out of money to extort them for money. Somewhere in all of this, you’ll start to notice a sense of paranoia about strangers who could scam you out of money or turn you into a potential customer. Somewhere in all of this, you’re also likely to start to notice a growing sense of worry and insecurity about what could happen if you don’t buy from the original source. This is likely a good thing.
Be Sure to Read All Terms Before You Buy
When shopping around for a new car, make sure you carefully read the terms and Conditions of each dealer and car shop you deal with. If you find that there isn’t actually anything in those terms that conflict with your purchase price, you’ve just found a great car dealer.
Be Careful with Credit Scores
Credit scores are used by lenders and credit unions to decide whether a particular loan could be approved. Credit scores can also be used by banks and other financial institutions to determine whether a loan is approved. If you see someone with a high credit score, it’s usually because they’ve paid their debts and/or are in hard times. If you don’t see anyone with a high credit score, it might be because they’re poor creditworthy.
If you get a car from a car manufacturer that doesn’t want you to be their customer, chances are good that it will be a straightforward, trouble-free experience. If you get a car from a car dealer that doesn’t want you to be their customer, chances are good that it will be a difficult, stressful, and time-consuming experience. If you find yourself in one of these situations, it’s best to get in touch with a car dealer who is willing to work with you. They may not be the highest-quality manufacturer to avoid common car shipping scams, but they will be your friend in the making.