Here at NX Automotive, we lose customers all the time. Usually to fake pricing. That is, a customer gets our rate, likes our company but is offered an amazing deal elsewhere that takes them on the path to another firm. Our reps tell us all the time. “We lose sales because we give the real price”.
To help customers looking for a better deal, we do what are called “trial bookings” Meaning, we give the customer the price we know it will be but we attempt to barter a lower rate with carriers on your behalf. Yes, that means you as a customer don’t get the instant “yes” on the lower rate. In fact, it can mean you don’t get the “yes” at all. But that is the only truly legitimate way. Full disclosure. It puts us to work. We do love a good win in those cases.
It’s Not First Come First Serve
The fact is carriers are simple. It’s not who is there first, but who pays the best rate for the type of vehicle. Their job is to find the lightest and highest paying vehicles first, followed by the less desirable larger vehicles that don’t pay as well. If they have to take one or two low paying cars they will to be full. But if there are 30 cars and one truck, guess who gets on.
Deceptive Sales Tactics and Contracts
The problem with this deal is that it’s part of the way auto shipping has worked since the beginning. Since the DOT and FMCSA are worried about safety, inspections, etc, nobody looks at how the service is sold.
Example
A customer will come to us for a shipping quote. We will provide a rate of let’s say $ 1125.00. Customer says they got a price of $ 799 and asks us to match it. Our software is pretty much on the money, but we look to see what we can do. The deal that’s competing against us is below what drivers are charging by far. You can warn the customer, but at the end of the day it seems like sales talk. Really it’s not . You want the sale, of course. And you’re willing to drop fees to get it but you can’t conjure up the fake price they got.
How then does that company with the false pricing make money? The trick for these bad actors is the long and confusing sales contract that locks customers in. You’d think that providing a great service, getting good reviews beats this. But at the end, it does not as customers jump on bargains without doing research more than one my think.
The Shifty Contract Locks You In
The bad broker gives you their expected price. Or their estimate of what they “think” it costs. One customer told it was called a “target price”. It just so happens to be the best deal you’ve heard all day. But in the contract it will say something like that is the the rate they will open with or the rate they will try for you to get for the best deal. Then the final “negotiated” rate may differ based on “market conditions”. In this case, always differs and you just paid and signed on an open contract, basically. You have agreed to pay whatever it comes out to.
So at this point they charged your deposit sent a driver on their way. Done on this signed contract which pretty much states it’s open season what the price will be. When the carrier arrives, they are asking for sometimes hundreds more.
Carrier can Hold Vehicle for Non-Payment
The DOT and FMCSA legally allow a carrier to hold the cargo until payment is received. It does not matter what deal you made with the company you hired that contracted this carrier. The carrier would not have taken the vehicle if they did not get paid the rate they expect. If you try to short them or not pay they can withhold cargo because that is the contract they accepted. And by the way, no credit cards at delivery. Cash or direct transfer only.
Can’t Dispute the Charge
If you’re lucky enough to not let the car get picked up but still want the money back from the bad transport company. Or maybe you want to cut some loss for what you had to pay at delivery by getting the money charged on your card. The logical step is to call your credit card company or bank.
Expecting it will work in your favor due to the misrepresentation, you actually lose the dispute because the contfact had all the details you overlooked. It is made so you cannot win it. You agreed not to cancel, you agreed not to book with another company at the same time, and you agreed to pay the market rate because the proposed rate was not available.
Lack of Regulation Hurts Consumers
The fact is, this is one of the least regulated industries in that regard. I recently helped my son study for the Real Estate exam here in Florida. Just like auto shippers, Realtors are brokers. They set up buyer and seller just as we in auto shipping set up shipper and carrier.
But in that industry there is so much regulated as to how the agent can represent their sale. There’s things like “tort“.
A tort is an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability . In the context of torts, “injury” describes the invasion of any legal right , whereas “harm” describes a loss or detriment that an individual suffers.
Well we’ve seen people suffer in the hands of bad auto shippers for sure! Cars being damaged, customers loosing time and money. Shifty contracts. You name it.
How about a “code of ethics” ? When a broker gets licensed, all the DOT and FMCSA care about is that the broker will pay the carrier’s their monies. In fact, besides a simple background check, anyone can become a shipping broker.
Don’t Be Cheap
Sounds abrupt and kind f strong but, yeah, stop being cheap. Things cost what they cost. A good deal can be a bad one if you don’t do the research. Just like you research anything else, whether is buying a new car or finding the best hammock for your patio. Read and learn all you can.
Tips You Wont Find Anywhere Else
At the time of this writing, nobody has all these tips. If they do, they copied from us so here you go.
- Read the Contract. Simple right? But nobody does. It’s like software terms, You just agree. But you can’t do that in auto shipping
- When the carrier is scheduled, insist on having the driver’s contact info. We give it automatically!
- Do NOT release the car without signing a condition report / BOL. No way. That is your protection.
- Same for delivery. Signed inspection. Driver MUST sign off on damage if any or none can be claimed and considered non existent! Insurance won’t allow a claim.
- When you call the carrier to confirm details, ask them ecactly the amount they are collecing at delivery. IF it differs, CANCEL THE PICKUP.
