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While many people today pay for most things with either their debit card or credit card, in the auto industry, cash-on-delivery is still the norm for many companies. But there’s still some confusion by customers as to why this is so. On the surface, it may seem archaic to only accept cash-on-delivery, but understanding why will shed some light on the issue.
What Does “Cash-on-Delivery” Consist Of?
Many would assume that cash-on-delivery only refers to actual cash that has to be handed over. But that’s not the case. While you can certainly pay with actual physical cash, it also can consist of some kind of certified fund. This can be accomplished through a cashier’s check or a money order. Sometimes, even a debit card payment would be valid.
Checks and credit cards are not accepted. The reasons are that many times, auto transport carriers have had to deal with bounced checks or customers placing a stop payment on checks or even trying to claim “fraud” with their credit card company. Auto transport carriers do not want to take a chance, especially with the added insult to injury of having to pay bounced check fees and/or credit card chargebacks.
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Auto Transport Brokers May Accept Credit Cards
Most auto transport carriers are independent businesses that consist of owner-operators that can’t afford to be given a fraudulent check or to be cheated out of a credit card payment. Auto transport brokers, however, do often accept their portion of the payment through credit cards and so forth. For example, the deposit and broker fee that you have to pay the auto transport broker can be completed through credit card payments, but the rest that has to be paid will have to be made through cash-on-delivery.
Auto Transport Carriers Rely on Cash-on-Delivery
As mentioned, because auto transport carriers are often owner-operated, they are responsible for paying for all of the fuel costs and food and lodging expenses while transporting your vehicle. This money comes out of their own pocket up front, and they cannot afford to either be cheated out of their payment or to wait too long before the payment clears, such as for a check to clear after 7 to 10 days. They need this money as soon as possible to be able to fill up their trucks for future deliveries and to pay off their own road expenses.
It Actually Benefits Customers
Cash-on-delivery actually benefits customers. The reason is that the customer only has to pay once the vehicle is delivered. Only the upfront deposit has to be made. If a customer were to provide the full payment upfront, this is taking a chance. But with cash-on-delivery, the auto transport carrier only gets paid when the job is completed, so you can be sure that every effort is being made to do so. Otherwise, the incentive may be gone.
At A-1 Auto Transport, we are completely transparent about the payment process. Contact us today for your free no obligation quote!