There’s always precautions one can take and information one can gather when it comes to shipping a car in order not to become prey to auto shipping scams. Cybercriminals in this sector mainly target the buyers offering an exceptionally low interest rate and fast processing of the loan only to swindle them. In this article, let us get into more of the auto transport scams, symptoms of such scams and ways you can avoid them and what to do when you have already fallen for a scam.
Common Auto Transport Scams
Auto transport scams exist in different types and hence the fraudsters employ different methods that they use to defraud car owners. About one such scheme, known as the bait-and-switch (as seen here), a company may quote incredibly low prices to attract more and more clients. They state that they will pick up the vehicle at this price and once they have done this they hike the price stating that there were events that they did not foresee or other charges. This places the car owner in a rather awkward situation where he or she will most likely be pressured into paying this higher rate to recover the car.
Another common form of fraud is fake carriers and brokers who usually collect deposits, and then dispose of it without offering the service. These scammers incorporate sites that are laid down in such a way that they resemble some genuine firms or perhaps develop completely new firms, which are closed as soon as the culprits get adequate deposit. This kind of con is not only expensive, but it also deprives the owner of a car of a means to transport the car.
Phantom companies are also a problem seen for example, a legal company may appear legitimate, yet it may not be operating legally. These entities post fake reviews and fake testimonials claiming their credibility of owning trucks or having experience in the auto transport industry which they don’t. They take their charges from the customers at the initial level and disappear without rendering any service to the clients. Knowledge of these scams will help one identify the possible threats that could occur in the future.
Also, the need to part with a bigger deposit amount acts as a red signal. The good companies usually demand a token or some amount of money once they deliver the consignment (see here for general info: https://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf). If there is a demand of a large amount of money for service before the contract is signed, then it should be a warning signal. Also, avoid dealing with those firms that compel you to sign contracts and that do not give you adequate time to study the terms of the agreement.
Inadequate licenses and insurance are also potential issues of concern here. There are certain things that you should always look out for in a genuine auto transport company and these include-a valid USDOT number- should be listed with the FMCSA. This piece of information can easily be confirmed through the FMCSA websites. Thus, one should turn to other companies, because it is extremely unwise to cooperate with organizations that refuse to present their licenses and insurance.
Tips to Protect Yourself
Avoiding auto transport scams is a bit different and entails one having to go out of his or her way just to avoid dealing with a scam company. When learning How to Spot Auto Transport Scams , you should begin by conducting extensive investigations on the possible transportation companies. Check for multiple sources such as the better business bureau, yelp and even google reviews. Also, check if there are recurring issues in the reviews, especially in relation to the prices or delivery.
Check for the company’s compliance through the USDOT number and the FMCSA registration. This information must be easily accessible either on their website or in any of the results the company submits to the SEC. Furthermore, you should request for insurance and check with the insurance company concerning the same. The legal organizations will be in a position to offer this information and they always incorporate it in the quote offered to clients.
Always put all the agreements in writing, this comprises of quotes, terms of service, and any guarantees. I will find documentation useful if there are disputes relating to the research’s results or conclusion. Do not deal with companies that do not want to put their terms in writing. Also, minimise the likelihood of paying large sums or full amounts, especially at the onset of the project. A token is normal but the balance should mostly be payable on delivery.
Finally, trust your instincts. Finally, My advice to anyone out there within a company and feels that something is not right or if the company is forcing them to make early hasty decisions, should be warned to slow down and think again. The best thing to do is to spend some more time in the quest to making the right selection instead of hustling and suddenly get swindled.
