Snowbirds — Shipping Your Car Back Home? Beware of These Four Scams
Snowbird season is coming to an end, which means many older adults will be shipping their vehicles back home. Here's how to avoid overpaying for that convenience.
Snowbird season, the annual time of year that typically starts in late October or early November, in which thousands of people, often retirees, migrate from colder northern regions to warmer southern areas to escape the winter, is coming to an end.
In late March to mid-April, many of those retirees will return home from places like Florida, Arizona and Texas — popular destinations for snowbirds who tend to spend as much as six months soaking in the sunshine and kicking back in warmer climates, before they return to their cooler climate homes.
Some of these snowbirds opt to ship their vehicles instead of driving them. It costs anywhere between $510 for shipping vehicles a few hundred miles away on an open carrier to around $1,580 to ship a car across the country in an enclosed truck, according to Move.org. The tradeoff is that it's a way to avoid the physical exhaustion that comes with driving long distances.
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Plus, you don't have to worry about accidents or mechanical failures. It also helps the travelers preserve their vehicle’s condition and enables them to enjoy their destination sooner.
While it’s a common practice among snowbirds, it can also be unnecessarily expensive, thanks to some unsavory practices. There are many reputable companies providing shipping services, but there are also others trying to scam snowbirds or overcharge them.
“It's one of those things where you’re going to have to do your research. Even though there are many legitimate car shipping companies, there are a lot of companies that aren’t 100% on the up and up,” says Amy Nofziger, Director of Victim Support, Fraud Watch Network at AARP. “This might not seem like something you have to pay attention to, but this is a huge asset that you have.”
Snowbirds need to know which fees are legitimate
When shopping for a car transport company, it's important to know the fees to expect. It will also help you when shopping for a provider. Some of the common fees are:
The distance: Transport companies charge a fee per mile, typically between $0.50 and $1.00 per mile, depending on how far you're going. Typically, the shorter the distance, the more it costs per mile.
Fuel cost: There is a fuel charge for transporting your vehicle. It's based on the national average diesel fuel cost and can fluctuate.
Open transport: This is the cheapest and most popular option. Your vehicle is exposed to the elements.
Enclosed transport: It is more expensive and is typically for high-end vehicles such as classic cars or exotic vehicles.
Vehicle size and weight: If you have a SUV or pickup truck that requires more space and fuel to transport, expect to pay more than if you own a sedan. The larger the vehicle, the more you'll pay.
Vehicle condition fee: If the transport company needs special equipment to load and unload your vehicle because it is inoperable, an additional charge will be applied.
Door-to-door service: The transport company picks up and drops off your vehicle at the address you specified. While it's the most convenient, it does cost more than picking it up at the terminal.
Terminal-to-terminal: Cheaper than door-to-door service, you drop off and pick up your vehicle at the terminal.
Storage fees: If you don’t pick up your vehicle right away, you could incur daily storage fees.
Loading position fee: If you request your vehicle to be placed on the top of the rack to protect against other vehicles leaking onto yours, there’s an extra fee.
Snowbirds need to watch our for four scams
To keep you safe and with money in your pocket this snowbird season, we highlighted four common scams to avoid when shipping your car to another state.
1. Bait and switch pricing
The scam: To get your business, some companies will promote a too-good-to-be-true price that only lasts for a short period. They come on strong, get you to leave a non-refundable deposit and then when it's time to ship the vehicle or pick it up, they charge more. They tack on this and that fee, and before you know it, that low fee isn’t so low anymore.
How to avoid it: If the pricing seems too good to be true, it probably is. It's important to shop around, get three quotes and if the quote is significantly lower than the rest, that should raise a red flag.
“We get enticed by the price and that emotion of getting a great deal can sometimes get in the way of cognitively thinking about, hey, all the other prices are $2,000, and this is $1,000, why is it such a good deal?” says Nofziger.
2. A non-refundable deposit
The scam: Some transport companies require an upfront non-refundable deposit, and then when it comes time to pick up your vehicle, they either delay the process endlessly or disappear with your money. You're out the cash and don’t have a company to ship your vehicle with.
How to avoid it: Just like the bait-and-switch scam, a telltale sign you may be getting conned is if the company engages in high-pressure sales tactics, tries to secure a deposit immediately, offers very low pricing, buries the terms in the fine print and does not have a cancellation policy.
Don’t work with a company that requires a non-refundable deposit, payment in full before shipping, or isn’t willing to say it's refundable in writing. There are plenty that will.
“A lot of companies use high-pressure sales tactics or scare tactics to get you to book a spot weeks ahead,” says Nofziger.
3. Catfishing — they steal your identity
The scam: Scammers aiming to steal the identity and bank information of unsuspecting victims will set up fake websites that look like the real car shipping companies' websites. Some will go as far as to create fake social media accounts, all in an effort to lure customers to their site instead of the real one.
How to avoid it: Selecting a transport company requires some research on your part. Sure, you have a million things on your plate as you get ready to move away for a few months, but you have to take the time to research the company.
Ask for the shipping company's U.S. Department of Transportation ID number. Then search the Federal Motor Carrier Safety Administration's (FMCSA) Company Snapshot Database. The database may not include small carriers or brokers, but should, in general, provide a company's "identification, size, cargo, inspection and out-of-service summary, crash data and safety rating (if any)."
After you find a few companies that you like, Nofziger says to vet them online at the Better Business Bureau and on crowdsourcing websites like Reddit to see what people are saying.
“Don't always look at just ratings, look at the reviews and the comments people have made,” says Nofziger. “Take the name of the company into a new search engine and search if there are any fraud complaints."
Rule of thumb: never click on an ad or respond to an unsolicited email, text message, phone call or flyer in the mail. You find the transport company, don't let them find you.
4. The ransom scam
The scam: This occurs after you've signed the paperwork and the transport company has picked up your vehicle. Upon delivery, the company suddenly demands additional payment, citing "unforeseen issues" such as fuel surcharges, challenging routes or weight discrepancies. To retrieve your vehicle, you are required to pay hundreds or thousands of extra dollars; otherwise, they may threaten to store your car in a distant facility or even auction it off.
How to avoid it: This often happens when a broker quotes a low-ball price but can't find a driver willing to work for that rate. They hire a driver at a higher price without telling you, then pass that cost on at the last minute.
Before the driver leaves during pickup, ensure the total price on the Bill of Lading (BOL) matches your original contract exactly. If the numbers don't match, do not release your vehicle. Always verify that the carrier at your door is the one assigned by your contract, and never pay the full balance in cash.
Be informed to save money
Heading back home is an annual rite of passage for many snowbirds. If you are shipping your car, it doesn't have to be an overly costly endeavor.
Follow the above tips, and you can ensure you aren't scammed as you head back from waiting out the winter months in the sun.
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