In the majority of cases, when choosing an auto transport company, you will be required to pay an upfront deposit to secure their services. Of course, you should never pay the full amount upfront, as no legitimate auto transport company would make that a requirement. If they do, it's a sign of a possible scam. The reason why many auto transport companies require a deposit is because it helps to ensure that you won't change your mind once you pay it, as you will have to go through the hassle of canceling the service and obtaining a refund, many of which are non-refundable.
A deposit also provides some security to the actual auto transport company, as they will know that their efforts are not being done in vain. But with the auto transport industry growing more and more competitive, increasing numbers of auto transport companies are now doing away with security deposit requirements. Here are the reasons why it makes business sense for auto transport companies to offer no deposit auto transport:
Gas Expenses Aren't As Much As You Think
One of the reasons that auto transport companies often give for making an upfront deposit a requirement is that it costs them money to pick up your vehicle. But auto transport brokers who arrange everything with an auto transport carrier are not usually liable for gas expenses. Many of the drivers are considered independent contractors and have to cover their own gas requirements, which they can write off as a business expense on their tax returns.
In addition, drivers are often given special company gas cards that offer discounts and percentage rebates, all lessening their expenses.
Plus, unless you're in some remote area, the driver probably doesn't have to drive a great distance to pick up your vehicle so there won't be too much in the way of gas expenses.
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More Customer Satisfaction = More Profit
Many of the most successful businesses in the world are focused first and foremost on providing excellent customer service. Being that the auto transport industry is so competitive if an auto transport company were to offer a no deposit auto transport policy, they will surely win over some customers.
All of this can lead to an increase in business, and while sometimes an auto transport company might suffer some losses from a customer changing his or her mind at the last minute, in the long run, they will have a greater amount of business that will more than makeup for it.
The Majority of Customers Are Serious
It's rare to find a customer that spends all of that time searching for and contacting an auto transport company only to decide that he or she will no longer need the service. Some auto transport companies may state that a deposit is a way of providing them with the assurance that the customer is serious, but the fact is, most customers are.
The offering of no deposit auto transport means that you will often have to pay once the driver comes up to pick up the vehicle. Some companies will even allow you to pay once it's delivered to its final destination, though that's not nearly as common.
At A-1 Auto Transport, we always strive to provide the most competitive prices available. Contact us today for your free no obligation quote!