Posted on 04/22/22

Is Auto Transport Financing A Thing Or Not

Is Auto Transport Financing A Thing Or Not

When money is tight, it can feel almost like the worst thing happens. Consider moving, perhaps to find a better job, go to school, or just to be with your family.

Auto transport services are the best option if you live too far away or in danger to drive. It's not finding an auto transport company that can do the job. In these cases, the problem is finding the funds to pay for it.

Auto transport costs in a pinch

Lending agents are a good option for those who need financing but don't have the cash right away. Similar to when purchasing a new vehicle, Americans are turning to lend agents to finance their automobile transport needs.

You may be able to finance auto transport to move your car from one state to another.

Move Car is a company that cares. We pride ourselves on providing the best affordable and most competitive rates in auto transport. If you're not careful, you could end up in deeper debt than you need to find financing options for a new vehicle.

We recommend doing your research on all options available and, more importantly, sticking to your budget.

What is the typical cost of an auto transport?

The most direct payment method is preferred by auto transport companies. Because this is a high-risk industry with low-profit margins, it is understandable. Many auto transport companies cannot afford late payments so they require some type of guarantee before proceeding with the shipment.

You will need to pay a large deposit before any work can be done. Because there are so many people involved in the process, it is important that the auto transport company keeps its eyes on them.

The most common route is cash-on-delivery. You won't be able to pick up your vehicle if you don't pay. Storage fees will apply per day until you receive the balance.


Because of their guarantee, many smaller auto transport companies will let customers pay cash. There are no check-offs, credit card companies that can stop the deposit or runarounds.

Some people avoid large cash deposits for security reasons or because they don’t have the time. They will also discuss other payment options that might be more convenient, such as direct transfers.

Ask about cash payment options and determine what works best for your company. Small auto transport companies often need cash quickly for their day to run smoothly. They would rather have an envelope filled with money than a check.

Credit/Debit Cards

Because it doesn't require cash and is quick, debit and credit cards are often the most convenient ways to pay for services. The company simply needs to swipe the card to receive the money to their business account.

Due to their small profit margin, some smaller auto carrier companies won't accept credit cards due to the high processing fees associated with each transaction. Some companies might outlaw credit cards because debit card fees are less expensive.

If a customer is unhappy with the service or wants to file fraudulent claims to recover the expenses, payments can be refunded. It is much more difficult for customers to return cash after it has been handed over.

A company may also require a cash deposit and then allow debit/credit cards payments to make the balance.

To find out if you can pay by card before booking your transport, please contact the auto carrier.


Some businesses find checks a delicate issue. This is not only true for the auto transport industry. The money is now the company's property and the customer will have to wait longer to get it back.

Bad checks can still happen, and it can seem like it's not worth the effort to track down the customer if they bounce. This is because of the time and costs involved in resolving this matter. Unscrupulous customers might even call their bank to stop payment.

This is why some auto transport agencies do not accept personal checks. They only accept cashiers and money orders.

Peer-to-peer (P2P) Payments

P2P apps are now more popular than cash and cards. Usually, this is for security reasons and they have been branded as an alternative with lower processing/transaction fees.

Paypal, Zelle, and Venmo are some of the most well-known P2P options.

Transfers are quick and compatible with all major banks in the U.S. Zelle is one example of an app that allows users to connect debit cards rather than credit cards in order to make sure cash is available.

Before you use P2P payments, make sure to check if they are acceptable tender.

Paypal Credit

Paypal Credit or Bill Me Later is a financing option that customers who use Paypal frequently will find suitable. Paypal lets users create a line of credit (with the backing from brick-and-mortar banks) and offer it as a loan that can be repaid either in installments or in a lump sum.

This option can only be used if all parties are in agreement. Please clarify before you proceed with this option.

Finance for auto transport

If you don't have enough cash, there are usually two options for financing auto transport. Personal loans are the most common option. The second option is to look for in-house financing options through your auto transport company.


To finance your auto transport, you will need to apply for a personal loan at a bank or lending agency. The funds can then be used to pay for the vehicle. It shouldn't take long to get the funds once you have met the basic requirements for the loan.

Check that the loan is reasonable in terms of interest and payment. Compare offers and do your research to find the best deal.

It's not always worth taking out a loan. Calculate how much you will end up paying over the long-term versus what you pay out of pocket. You could end up paying twice as much if you get a poor deal!

Auto transport costs less if you are moving to a state. It's easier to use a credit card and pay it off with a portion of your salary.

Personal loans are often more practical when you need to transport your car across the country, border, or ocean to start a new lifestyle. This allows you to pay the loan back at a reasonable rate and relieves some of the moving and settlement costs.

Talk to someone if you aren't sure if the loan is right for you.

In-house financing

Many companies offer payment plans, but in the auto transport industry, it doesn't usually make sense.

Small businesses

While large companies may be able to absorb the shock of late payments, most people don't want to take that chance. It is not intended to discourage customers or make things more difficult for them. It is simply about the continuation of business operations.

It is clear that many of these auto transport companies can't afford to lose out on funds. Drivers must maintain their vehicles, purchase fuel, and pay for lodging and food. They also have to make a living providing these services. This high overhead cost requires constant cash flow to support the auto shipping industry. Many of these companies can't operate without cash and don't have the support of banks to recover lost earnings.

Because the shipping process involves two companies, smaller companies may not be able to offer in-house financing. The auto transport broker is one and the carrier is the other. A deposit will be required by the broker to help them find the right carrier for the shipping. Next comes the delivery fees.

Because it is not one entity, a payment plan can complicate things. Two separate payment plans would be required to bond you, which could lead to higher costs in the end.

Independent/large companies

Shipping companies that offer payment plans are able to do so because they act as both the carrier and broker. They have usually the infrastructure in place to protect themselves against risk and generate positive cash flow.

Pre-set interest rates and payment plans may also be available. These rates can vary between auto transport companies so it is important to do your research.

How to make auto transportation more affordable

Online quotes are the best way to get an estimate of how much your car transport will run. Compare prices with other estimates to find the best deal.

Get a FREE, no-obligation quote tool today to calculate the shipping cost for your car.

Did you know that estimates are only rough estimates and that you could end up paying less than what you anticipated? Here are some ways to make auto transport more affordable:

Look for discounts

A discount is a great way of saving money on your car transport. Students and military personnel often get discounts all year. Senior citizens may also be eligible for special discounts.

As an incentive to book immediately, companies may offer additional discounts to certain customers.

Call to inquire about discounts if you don't find any on the company's website. There may be discounts that you weren't aware existed.

Ship out of season

In the winter months, the demand for auto transport drops in the off-season. Incentives for customers are offered by auto transport companies to lower their transport rates.

Shipping off-season has the advantage of being able to find a shipping date that is available much earlier than during peak season. If weather conditions allow, you may receive your shipment even sooner.

Open-air transportation is preferred to enclosed shipping

Two ways to transport a car on land are most common: open-air transport and enclosed shipping.

Open-air transportation means that your car will be loaded onto a truck and transported outside. This is a cheaper option as it allows for more vehicles to be transported at once.

Because the car is transported in a covered carrier, enclosed transport can be more costly. They can usually transport up to four vehicles at a time, which is a cost-sharing arrangement.

Open-air shipping is a cheaper option than shipping your car by air.

terminal-to-terminal delivery vs door-to-door delivery

The carrier will charge less if you drive your car to the terminal. The same applies if you pick up your car at the destination terminal.

You will pay more for the service if a carrier arrives at your home or at a predetermined place for pick up. It will cost you extra to drop the package off at a different location than the company's terminal.

It will save you money but should still make sense. It may be more practical to choose door delivery if you live far from the terminal. Ask about door-to terminal or terminal-to-terminal delivery options.

Move Car offers car shipping

We are available to help you with your questions and to assist you in finding the best way to transport your vehicle. We offer fair prices and have the experience to get you there faster without breaking the bank.