Car shipping deposits and payment: how it usually works
Many bookings involve a deposit to the broker and a balance paid to the driver at delivery. What's normal, what to ask, and how to pay safely.
Payment in car shipping often comes in two parts, which surprises people the first time. Here's how it usually works and how to protect yourself.
The common structure
- A deposit or booking fee paid to the broker, either when you book or when a carrier is assigned.
- The balance paid to the driver at delivery, often in cash, a cashier's check or another method the carrier accepts.
Some companies take the full amount up front instead. Neither is wrong, but you should know which one you're agreeing to.
Questions to ask before paying anything
- When is the deposit charged: at booking, or only once a carrier is assigned?
- Is the deposit refundable if no carrier is found, or if you cancel?
- How does the driver expect the balance at delivery? Some carriers don't take cards.
- Is the total price on the dispatch sheet the same as what you were quoted?
Paying safely
- Prefer a credit card for deposits. It gives you dispute rights if the service isn't provided.
- Be cautious with wire transfers, gift cards and payment apps. Money sent that way is hard to recover.
- Don't pay the balance until you've inspected the car and noted any damage on the bill of lading.
- Keep receipts and the written agreement.
Red flags
- Pressure to pay most of the price immediately.
- A deposit that's "non-refundable" even if the company never assigns a carrier.
- A demand for payment before the car has been picked up, by a method you can't dispute.
More warning signs in how to spot a car shipping scam.