How to Avoid Broker Scams in the Auto Transport Industry

The United States Auto Transport Industry is growing rapidly. More people are shipping their vehicles, and the brokerage market is huge ($758.54 million) as of 2024. Over 54,000 licensed brokers coordinate over 1.2 million long-distance moves each year. Moving to another state? Buying a vehicle online? Relocating for a new job? This number shows that auto transportation is becoming very common and a big part of our lives.

Finding a good company to transport your vehicle can be overwhelming, especially when using a broker. A broker will find a carrier to transport your vehicle, but not all brokers are honest. There are many scams out there, including hidden fees, delays, and, in some cases, the failure to deliver your vehicle.

This article will cover the most common broker scams expected to occur in 2026 and offer advice on how to avoid them. Once you know what to look out for, you can make an informed decision when selecting a broker, safely ship your vehicle, and enjoy a stress-free auto transportation experience. Let’s begin safeguarding your investment throughout the entire process.

The Importance of Choosing a Trusted Auto Transport Broker

 You’re likely to come across dishonest broker scams when using a broker to transport your vehicle. Over the years, scammers have capitalized on the increase in vehicle shipments. Fake brokers will advertise deals that seem like they are “too good to be true” and then disappear, leaving you to deal with the consequences.

A broker does not directly transport your vehicle. They act as a liaison between you and the actual carrier(s) who will be transporting your vehicle. Brokers can be beneficial in several ways, such as providing convenient transportation options at competitive prices by working with numerous carriers; however, this added layer can confuse and give unscrupulous brokers opportunities to mislead consumers. Unscrupulous brokers may fail to vet the carriers properly they use or withhold information from you.

There are many potential risks involved with hiring a dishonest broker. These include:

• Never receiving your vehicle: The broker hired an unreliable carrier to deliver your vehicle.

• Hiding fees: The broker is going to charge you double what he originally quoted you for your shipment, and he will not disclose the additional fee until after he has already received your payment.

• Bad service: The broker is unable to communicate effectively with you, is consistently late, and/or damages your vehicle.

Vetting your auto transport broker will help protect your vehicle’s safety, ensure it arrives on time, and provide you with a fair price for the services the broker provides. A reputable broker will clearly disclose the costs associated with the services they provide, communicate effectively with you, and only use carriers that they have deemed to be reputable.

Knowledge is your greatest protection against scams in the auto transport industry. Using a verified, reliable broker will help you avoid common mistakes and ensure a stress-free, enjoyable auto transport experience.

Understanding How Auto Transport Brokers Work

A broker represents you (the customer) by acting as a middleman (or “matchmaker”) to arrange the transportation of your car from one place to another. The broker does not possess the truck(s) or the driver(s) responsible for moving the cars—the broker’s role is to find the correct transporter (carrier) to meet your particular requirements.

A carrier owns the truck(s), employs the driver(s) responsible for transporting your car, and is accountable for handling all of the details associated with the movement of your vehicle, including the loading, driving, and unloading of the vehicle.

Unlike a carrier, a broker never physically touches your car. Therefore, a broker’s value lies in its ability to identify the most suitable carrier for your specific needs. It is very important to understand this distinction, as it will affect pricing, responsibility, and service levels.

Why are brokers used in the auto transport industry?

The auto transport industry is a vast, fragmented market comprising thousands of carriers serving every region of the United States. In many cases, finding the right carrier to transport your car can be a long, complicated process, which is why many individuals use a broker.

By utilizing a broker, you can take advantage of their extensive network of carriers, which allows them to provide more choices regarding routing, scheduling, and pricing than would be available if you contacted each carrier individually. Since a broker works with a multitude of carriers, they can typically find competitive pricing and more flexible pickup and delivery times than would be possible without a broker.

The benefits of using brokers

A broker greatly simplifies the process of shipping a vehicle. Instead of calling and negotiating directly with multiple carriers, you deal with one broker who handles the logistics, negotiates the shipment cost, and arranges the pickup and delivery of your vehicle. By doing so, you will save time and reduce some of the stress of arranging your vehicle’s shipping.

The greatest benefit of using a broker is the scope of their carrier network. A broker can match your vehicle with the best possible carrier for your desired route and delivery date. Additionally, a broker has considerable experience with the complexities of the auto shipping business and is therefore better equipped to help you avoid potential problems.

However, it’s crucial to choose a reputable broker. Since a broker does not physically transport your vehicle, their credibility rests solely upon the carriers they choose to represent you. A good broker researches their carriers extensively to ensure that they are reliable, have adequate insurance coverage, and provide high-quality service.  

Common Broker Scams in the Auto Transport Industry

There are many honest auto transport brokers available today, but unfortunately, there are also many scammers in the industry. Knowing what to look out for will help you protect yourself and avoid costly mistakes. Below we list some of the most common auto transport scams:

Lowball estimates & hidden fees

The number one tactic that dishonest brokers use to get your business is lowball estimating. For instance, they may quote you a competitive price for moving your car across the country. Let’s say you were quoted $400 for moving your car from California to New York. Sounds like a great deal, right? Well, as soon as you commit to using their company, you are hit with fuel surcharges, admin fees, “mandatory” insurance charges, etc. The final bill can sometimes be two or three times higher than the original quote. These hidden fees are usually buried deep within the fine print and disclosed after you’ve already made your commitment.

Not securing a carrier to deliver your vehicle on time.

Fraudulent brokers sometimes take your money and do nothing to book a carrier to haul your vehicle. Sometimes you only realize weeks later that your broker never booked a carrier to pick up your vehicle. This implies that you might find yourself without a scheduled delivery date, and in certain situations, your vehicle might find itself stranded at a different location. In other instances, brokers might select inferior carriers who abruptly cancel, leaving you frantically searching for alternatives. This is inconvenient, costly, and stressful.

Deceptive terms and conditions

Scam brokers often confuse you with the contract’s terms and conditions. They will employ wording that aims to restrict their liability or complicate your ability to cancel the agreement. For example, a clause that releases them from any responsibility for any damages or theft that occurs during transportation leaves you vulnerable to losing money if something goes wrong. Another example is a large cancellation fee (sometimes 50% or more of the total cost) that will be charged to you if you decide to cancel before the service begins.

No insurance coverage

Insurance is essential when transporting a vehicle. Some shady brokers either fail to verify that their carriers have sufficient insurance to cover the vehicles they are hauling, or they lie about having it. Should your vehicle suffer damage, theft, or loss during transit, you may find yourself without any recourse for reimbursement. Please ensure to request proof of insurance and verify it personally.

Fake companies

Be wary of brokers with fake names or who disappear after you deposit. These scammers often lack a real business name, legitimate contact information, or online reviews that appear excessively positive. They will often use someone else’s identity or set up a phony company to hide from you and law enforcement.

Knowing the types of scams that exist will better protect you. Conduct thorough research on each broker you are considering, ask numerous questions, and trust your instincts. If something seems fishy to you, it probably is. By taking the proper precautions, you will avoid financial losses and minimize the risk of a stressful shipping experience.

Red Flags to Look Out for When Choosing an Auto Transport Broker

There are many ways to identify a broker who will help you ship your automobile to another state. Some of the indicators that may signal you have selected a “bad” transportation broker include:

Unusually low quotes

Generally, if a consumer receives a quote that appears unusually low, it may indicate a potential scam. Most transportation brokers will quote consumers based on the shipment’s mileage, the size of the vehicle, the type of fuel used, and other factors. The consumer should be aware that a very low bid may result in additional charges down the road. Therefore, we recommend that the consumer obtain multiple bids from various transportation brokers and request a detailed breakdown of the estimated cost of each bid.

No physical address or professional website

A legitimate auto transport broker will typically have a physical address and a professionally designed, well-maintained website. If the consumer cannot locate the physical address of the broker or if the website appears to be old or poorly constructed, then this may be an indicator that the broker is involved in a scam.

Poor or no customer reviews

The consumer should check multiple sources, such as the Better Business Bureau, Trustpilot, and Google, to determine how other customers have rated the broker. The scammer will generally lack customer reviews, or they may have fake reviews that appear generic and overly positive. We also suggest that the consumer review all comments about the broker to see if any patterns indicate the broker may be untrustworthy.

High upfront payments

Most auto transport brokers typically require a small deposit, usually less than 20% of the overall cost of the move. If the broker requires the consumer to pay the entire amount of the move before the vehicle is actually picked up, this is likely a red flag indicating a scam. We highly recommend using a credit card for any payment, as it offers consumers greater protection against fraud.

No licensing or certification

In the United States, all auto transport brokers must register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number. The consumer should verify the broker’s USDOT number with the FMCSA website, and if the broker does not have a valid USDOT number, they should not rely on it. It is also important to note that operating without proper registration is illegal and a risk to both the consumer and the broker.

Lack of clear communication

Generally speaking, the reputable auto transport broker will communicate with the consumer throughout the process, keeping them informed at all times regarding the status of their vehicle. If the consumer has difficulty getting clear answers from the broker or if the broker fails to respond to phone calls or emails, then this is likely a red flag. Good communication is essential for building trust with the consumer and is indicative of the level of service that the consumer can expect from the broker.

Takeaway

Knowing the red flags listed above can help protect you as a consumer from scams and reduce stress when moving your vehicle. It is also up to you as a consumer to use your best judgment and listen to your instincts. If a broker seems suspicious, do more research before working with them.

How to Vet Auto Transport Brokers to Avoid Scams

Vetting a broker takes work, but it will be well worth your time, as it protects both your vehicle and your money. Here’s how you can vet an auto broker to make sure they are legitimate:

• Brokers must be registered with the FMCSA, which regulates interstate transport. You can check whether they have registered by visiting the FMCSA website and searching for the USDOT number they use to operate.

• Find reviews from other people on websites you trust: Find out what others have to say about them on Google, BBB, and Trustpilot. If there is a pattern of consistent positive or negative comments, the results may tell you something about the broker.

• Get a reference: You should never be hesitant to get in touch with former clients of a broker to find out if they were happy with the service they received. Talking to someone who actually used the broker can give you a good idea of whether it’s reliable.

• Make sure they are transparent when it comes to prices and services: Before you book anything, ask the broker to break down all of the costs associated with shipping your car and the terms of service. Do not choose a broker who is unclear or unwilling to answer questions clearly.

Steps to Take If You Suspect an Auto Transport Broker Scam

If something doesn’t feel right or you realize you’ve been scammed, act quickly:

• Stop talking to them immediately: Don’t give them any money or send any more information. Don’t talk to them until you are sure they are who they say they are.
• Talk to your credit card company: If you paid a deposit or fee, tell them you want to file a claim against the people responsible for the fraud or scam.
• Tell the authorities about what happened: Report what happened to the FMCSA, FTC, and your state’s Consumer Protection Office so they can go after these crooks and prevent other people from being taken advantage of.

How to Safely Work with a Legitimate Auto Transport Broker

Working with a trusted broker is about being proactive and informed. Here’s how you can do that:

• Choose a well-known, reputable broker: Look for companies with years of experience and a strong online presence. Steer clear of newly established brokers with little history or customer feedback.
• Understand the terms of your agreement: Read every part of the contract carefully. Ask questions until you’re clear on what’s included, how payment works, and what happens if there are delays or damage.
• Use a contract with clear terms and insurance coverage: Ensure the agreement specifies the insurance coverage, both parties’ responsibilities, and cancellation policies.

FAQs on Avoiding Broker Scams in the Auto Transport Industry

How can I tell if an auto transport broker is legitimate? 

Verify their FMCSA license, check multiple independent reviews, and confirm they have a physical address and professional website.

What should I do if I suspect an auto transport broker has scammed me? 

Stop contact, dispute charges with your credit card company, and file complaints with the FMCSA, the FTC, or your state’s consumer protection agency.

Are there any protections against auto transport broker scams? 

Yes, the FMCSA regulates interstate brokers and carriers, and many consumer laws protect you. Always use licensed brokers and know your rights.

What licenses should a broker have to prove they’re legitimate? 

They should have a current FMCSA broker license and a USDOT number.

Is it safe to work with brokers who offer significantly lower prices than competitors? 

Generally, no. Extremely low prices often hide hidden fees or poor service. Choose fair, realistic quotes.

How do I avoid hidden fees in my car shipping quote? 

Request a detailed estimate, ask about all fees upfront, and read your contract carefully.

What should I do if a broker fails to deliver my car on time?

Contact the broker immediately to get status updates. If you suspect a scam, report it to the relevant authorities.

What are the most common scams involving auto transport brokers to watch for?

These scams typically involve lowball quotes with hidden fees, failure to deliver, misleading contract terms, and a lack of insurance coverage.

Conclusion: Protect Yourself from Auto Transport Broker Scams

In the world of auto transport, knowledge is your best defense against scams. Choosing a trusted, verified broker can make your car shipping experience smooth, safe, and predictable. Careful research and asking the right questions prevent surprises and protect your vehicle every step of the way.

For those looking for a transparent and reliable option, Preowned Auto Logistics stands out as a solid choice. With clear pricing, full accountability, and transparent communication, we deliver vehicles on time and in great condition, putting customers first.