Car shipping price factors
What is the difference between manual and automated quotes?
Daily changes to supply or demand affect the prices. The way auto transport work is this – customers compete against each other for a spot on a car carrier.
Brokers post their loads on national dispatch boards, and carriers choose. It all depends on the price. When a vehicle is priced correctly, a carrier will take it immediately.
A logistics expert can quote an accurate price based on current supply and demand. Only a correct market price will ship a vehicle now. Manual prices are rates calculated by logistics experts, not by software.
A car shipping calculator has preset parameters that determine the price. It never reflects current supply and demand, and this ultimately renders the price inaccurate.
A software cannot ‘see’ what happens on the dispatch boards daily, hence it can not assess live supply and demand. Consequently, a software does not quote a realistic price.
What do you need to know about car shipping quotes?
Similar to other industries, in auto transport prices are driven by various factors. However, all quotes are not created equal, all auto transport companies too.
When you search online you will find three major entities:
- broker/carrier companies
- lead generation websites
- auction websites
The most realistic rate comes from an auto transport broker or a carrier company. They are the engine of this industry. This is what keeps the prices competitive and the industry in balance. All the small and mid-size brokers and carrier do not allow monopolization of the market by large corporations.
Most carriers, however, do not manage the shipping. A carrier is responsible to load, deliver and unload your vehicle. About 90 percent of the car carriers in the US are small, owner operated companies. They work with brokers to fill their cargo space. This is why the prices you receive online are from auto transport broker companies.
This entity is not an auto transport company of any type. This is an online business created to generate leads for other businesses. A lead is the customer’s information with a request for price for a specified vehicle shipping service. These lead generator websites are often found online and customers frequently confuse them for auto transport companies. In reality, they are neither a carrier nor a broker.
After receiving the customer’s request they sell their information to several companies. This is how a lead generator website makes money. However, the end result is not the best option for you. As a customer you will receive several calls from companies competing for your business. It is often very unpleasant to receive 5 to 10 calls in a matter of hours. Moreover, these companies compete against themselves and they quote low unrealistic rates.
This means that you will not receive a realistic price that will ship your car in a timely and professional manner.
The third entity is auction websites, or also called marketplaces. We advise customers to avoid such platforms because this is where underbidding wars happen. On such websites you can receive more than ten auto transport quotes and they will all be either too high or too low.
Most companies are not able to quote current market rates because they need to compete live and place multiple bids in order to win.
Also, often due to fees imposed from the auction website, auto transport companies are forced to quote higher prices so they can make at least some profit. It is not only the companies’ fault, or the platform itself. The demand for low prices has always been a factor. And when people search for cheap they get cheap. On auction websites you get what you pay for. A low price often equals low quality service.
These entities and the car shipping prices they quote are not created equal.
- Auto transport prices vary between all three entities.
- It is a fact that upon requesting several quotes, you get different rates.
- Some companies quote too high, while others unrealistically low prices.
- Such differences are possible because who quotes the price matters.
- Prices quoted by lead generation websites and auction websites are noticeable.
- Broker and carrier companies quote the most realistic prices.
The engine of the auto transport industry in the US is all small and mid size broker and carrier companies working together on daily basis. They make the industry efficient and prevent monopolization.
How do you know you are getting a fair auto transport price quote?
Many quotes are not current market prices. This is the case when you request prices from lead generator websites. With some brokers, or carriers, this can also happen.
Some companies offer low prices and ask for deposit upfront. This means you cannot cancel when they fail to pick up your car in the specified time frame. And they do fail often because their rate is too low for a carrier to accept.
On the other hand, some big companies exploit the market by quoting high prices. It is exploitation because the rate is way above current market value and the extra goes towards company profits, not toward the truck driver.
A correctly quoted rate guarantees timely and professionally auto transport. Moreover, prices fair to the truck drivers help build a solid business relation between good brokers and good carriers.
Request your quote online or call our team now. For all auto transport related questions call or contact us online. Our dedicated team of logistics experts will answer all of your questions and help you choose the best solution. We look forward to serving your auto shipping needs. Thank you.