Auto Shipping Glossary: Pre-Paid Transportation
In the car shipping industry, a pre-paid order is one that you, the customer, pays for in its entirety up front. Most private automobiles that are shipped for individual customers (as opposed to dealerships or manufacturers) are paid via cash-on-delivery – in other words, your auto transport company (or the broker) will take a small deposit or broker fee when your vehicle is dispatched or picked up, and you pay the rest of the balance to the driver himself when your vehicle is delivered. This method is preferred by almost every single auto transport company, broker and carrier alike, as it makes the entire process that much easier for everyone involved. There’s less paperwork, less hassle, less frustration on everyone’s part – and that makes everything just a bit easier.
But what exactly does it entail, this pre-paid auto transportation service? Well, when you pay up-front, or pre-pay the entire balance as opposed to opting for cash-on-delivery, you’re paying the full balance – broker fee and all – to the broker, generally at the time you place your order. Pre-paid shipments are generally used for when you can’t be at delivery and you can’t pay the driver at delivery – instead, you can pay your broker along with their fee and they’ll send the carrier a check or pay them via some other means. This is not nearly as popular as cash-on-delivery; whereas with COD carriers get paid with cash, a cashier’s check or a money order, pre-pays are typically paid via a check sent to the carrier’s dispatch office or other physical address. Checks aren’t as great as cash-on-delivery because, let’s face it – would you rather have $800 given to you in cash, or in a check you have to take to your bank? Most people say cash, and it’s the same mindset for carriers.
Pre-paid transportation services usually come with longer pickup times, however, mainly because of the fact it’s not paying cash-on-delivery. Let’s go back to our previous example: would you rather have $800 given to you in cash, or in a check you have to take to your bank? It’s this logic that makes pre-paid orders take longer to get picked up because fewer carriers want to pick it up. It is also for this reason that pre-paid transportation services generally are a bit more expensive than cash-on-delivery, because it takes longer to actually find a carrier willing to pick it up. If you’re interested in auto transportation services, be they pre-paid or cash-on-delivery (or some other method you may have in mind), feel free to fill out our free online quote request form to get multiple free quotes e-mailed to you within the next hour. If you’re looking to have some questions answered or need some help with our free form or just navigating our website, you can call us toll-free at 800-930-7417 to speak to one of our live agents.