Is There Such a Thing as Cash on Delivery (COD) Auto Transport?

The auto transport industry is a highly competitive space. This is one of the reasons it has developed so much in the last decades, especially since communicating has become much easier via the Internet. Customers, clients, and brokers can easily get in touch with each other via online platforms, and they can better negotiate prices and conditions for shipping cars and other vehicles.

Many customers are indisputably preoccupied with how auto transport is paid for, as it’s a service that can cost quite a lot. Certain particularities exist in the auto conveyance industry, and cash-on-delivery payment is one of them.

What Is Cash on Delivery (COD?)

Cash on delivery is the most common payment method in the automobile carrier industry. Although you might interpret it as cash only, it also refers to payments done by money order, bank transfer, cashier’s check, or a certified check.

Because COD includes more than cash compensation, it’s sometimes called “collect on delivery.”

Why Do Vehicle Hauling Providers Demand Fee?

For an auto conveyance provider, making a delivery for which they won’t be paid can be a big blow to their business. Many carriers make the trip on a budget that includes your cost. If they don’t get the money from you on delivery, they will suddenly be left with a gap in their immediate budget.

Another reason you should expect COD payment for motorcar transport is that the customers themselves expect this system to be applied. Who would be willing to pay for a transport that was not done or for having their car stolen, damaged, etc.? Customers will pay for their conveyance in full once the car has reached its destination safely. This is why you, as a customer, should never accept paying for the transport in full before the shipment is done.

What Are the Forms of Payments You Can Use for a Car Hauling?

Fortunately, even if most auto transport haulers still require cash on delivery, they still give you plenty of options to choose from, making the transaction convenient for both sides. Let’s go through a few fee options you can choose from:

• Credit card (not all carriers will accept credit card payment, though - if you would like to pay with credit, check if it’s possible before you seal the deal;)
• Debit card;
• PayPal, Transferwise, Revolut, and other online virtual banking services;
• Bank transfer;
• Check (this option will not be available with all carriers, and the check would have to be certified;)
• Cashier’s check: this type of check is paid from the bank’s funds and is signed by a cashier, hence the name;
• Cash;
• Online payment.

You have to keep in mind that some price methods, such as bank transfers or checks, might take some time before going through (up to a few workdays, sometimes even more). This can result in delays to your motorcar carrier service, as the carrier will have to wait for the payment to be finalized before doing the delivery.

Paying a Deposit Before the Carrier

Even if most auto movers use the COD fee system, some might still ask for an upfront price. This request is justified by the need to cover conveyance costs, but it’s mainly a way of guaranteeing their service will be compensated.

Upfront deposit pay can range between 10 and 50%, depending on each carrier, but it shouldn’t go above the 50 percent limit. We recommend our end customers to not choose a carrier who demands full fee upfront, or a deposit of more than half of the final price. You should also have a guarantee that your payment will only go through once the service is received - your vehicle has arrived safely at its destination.

Cash on Pick-up

Sometimes, carriers want to be a bit more certain about their financial agreements with their customers, which is why they might demand cash on pick-up. When your car is picked up for delivery, you will make the payment, which gives the carrier all the needed resources to make the transport.

Of course, this removes the customer's guarantee of only paying for the service once it’s done.

The Costs of a Car Moving Carrier

When choosing an auto carrier, customers tend to trust a company that won’t demand upfront payment or that practices cash on delivery rather than cash on pick-up, let’s say. When it comes to fee, though, it would be unfair to judge a company’s legitimacy based on that alone.

Many automobile transport haulers operate on a local level or are small businesses started by drivers who believe they can improve the service they provide. For a motorcar transporter that has just started this business or that isn’t yet strongly established on the market, any lost price can seriously affect its business.

For these small, local carriers, an upfront cost means maintaining the highest quality of service possible. Until they have grown enough, they might have to cover their transport costs beforehand.

Competition in the Vehicle Hauling Industry

When it comes to competitiveness, the motorcar carrier industry is fierce. Many carriers are on the market, and choosing between so many options is hard. Customers naturally go for the lowest price, but it’s important to know how that small price is even possible.

Generally, there’s not much one can do to decrease auto transport costs, unless the waiting time becomes significantly longer. Since most customers also demand a quick service, prices are relatively high (compared to a shopping trip, let’s say).

To get the best price from a carrier, it’s most efficient to get to them through an auto-moving broker. They will sometimes offer discounts from their own pay or negotiate better with the carrier, with which they have their own deal. Other times, finding an independent carrier who you know is reliable is preferable to going to a broker.

It all comes down to your needs, and it’s essential to lay them out before sealing the deal with an auto-hauling company. Motorcar conveyance providers have a clear price list for the base service, which is moving your vehicle from A to B, and they can vary their offers by adding extra services.

When searching for the best automobile transport company, contact at least three competitors and lay down your demands and circumstances. If you're in a hurry, get a broker to do it for you and find the best price. Remember that it’s not always the price that needs to be discussed, but also the payment method and expectations.

We Can Help

Here at A1 AT, we have more than thirty years of experience in the trade, so we are very well aware of the challenges each side faces. Give us a call, and let's discuss your needs and find a way to accommodate them. We'll do everything we can to ensure a safe and competitive shipping service.