Car Shipping Scams 2025: How to Protect Your Money
- Never use a shipping company suggested by the seller—they're often fake
- Legitimate shippers don't require full payment upfront (50% deposit max)
- Verify carrier USDOT and MC numbers at safer.fmcsa.dot.gov
- Use reputable brokers like Montway, AmeriFreight, or Sherpa Auto Transport
- If a deal requires shipping, the scam risk increases 5x
Avg Scam Loss
$3,800
UpFake Carriers
15%
UpRecovery Rate
12%
DownComplaints/Year
12,000+
UpThe Shipping Scam Epidemic
Car shipping scams have exploded as more buyers search nationwide for vehicles. Scammers exploit the legitimate need for auto transport to steal thousands. The average victim loses $3,800, and recovery rate is a dismal 12%.
Understanding how these scams work—and how legitimate shipping operates—is essential for anyone considering an out-of-state vehicle purchase.
The Golden Rule
NEVER use a shipping company suggested by the seller. This is the #1 shipping scam vector. Legitimate sellers don't care how you get the car—they just want payment. If they insist on their shipper, it's a scam.
Common Shipping Scams
1. The Fake Shipping Company
How it works: Seller provides a "shipping company" contact. The company has a professional website, phone number, and representatives. You pay shipping fees (and sometimes a car deposit) via wire or gift card. The company vanishes. There was no car; there is no shipment.
The "shipping company" is the same scammer using a second identity. The website was created recently, often copying legitimate company content. The phone number routes to the scammer or an accomplice.
2. The Deposit Hijack
How it works: You find a real car from a real seller. A scammer intercepts communication and poses as either party. They direct you to pay a "shipping deposit" to their account before the real seller knows anything happened.
3. The Bait and Switch
How it works: A legitimate-seeming broker quotes a low price. After you book, they claim no carriers are available at that rate. They demand more money or hold your deposit hostage. This isn't always fraud—sometimes it's just a bad broker—but it costs you money either way.
How Legitimate Shipping Works
The Booking Process
- You choose a broker or carrier (not the seller)
- Get quotes from 2-3 companies for comparison
- Pay a small booking fee ($0-$200) or nothing upfront
- Carrier contacts you to arrange pickup
- You (or the seller) inspect the car and sign a bill of lading
- Pay balance at delivery after inspecting the car
Legitimate Payment Terms
Reputable carriers typically require no deposit or a small booking fee. The balance is paid at delivery, in cash or certified check, after you inspect the vehicle for transport damage. Any company demanding full payment upfront—especially via wire—is a red flag.
Verification Is Free
Every legitimate carrier has a USDOT and MC number registered with FMCSA. Verify at safer.fmcsa.dot.gov for free. Check that authority is active, insurance is current, and the company has operating history. This takes 5 minutes and can save thousands.
Choosing a Legitimate Shipping Company
Reputable National Brokers
- Montway Auto Transport: Large, established, good reviews
- AmeriFreight: Competitive pricing, damage protection included
- Sherpa Auto Transport: Price-lock guarantee, good communication
- Ship a Car Direct: Carrier vetting, damage-free guarantee
Verification Checklist
- ✓ Active USDOT and MC numbers (verify at FMCSA)
- ✓ Insurance on file with FMCSA
- ✓ Operating history (not brand new)
- ✓ Reviews on Transport Reviews, Google, BBB
- ✓ Physical business address (verify with Google Maps)
- ✓ Standard payment terms (balance at delivery)
If You Must Buy Out-of-State
- Verify the car exists: Hire a local inspector ($100-$200) to confirm the vehicle, VIN, and condition
- Use your own shipper: Never use a seller-suggested carrier
- Pay with protection: Credit cards offer chargeback rights
- Get documentation: Bill of sale before shipping, title at delivery
- Inspect at delivery: Note any damage on the bill of lading
Proceed with Extreme Caution
Pros
- Legitimate shipping expands your buying options
- Verification tools are free and effective
- Reputable brokers provide reliable service
- Credit card payment offers protection
Cons
- 15% of carriers have questionable practices
- Out-of-state purchases are inherently risky
- Scammers create convincing fake companies
- Recovery from fraud is very difficult
Recommendation
Never use a seller-suggested shipping company—this single rule prevents most shipping scams. Verify any carrier at safer.fmcsa.dot.gov. Use established brokers with track records. Pay the balance at delivery, not upfront. When possible, consider local purchases that don't require shipping at all.
Frequently Asked Questions
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