Auto Transport Companies vs Auto Transport Brokers – What’s the Difference?

it’s essential for people who plan to move a vehicle or fleet of vehicles to understand the difference between the types of auto logistics companies. You want to be certain you’ll get the right kind of service, and at the right price.

Types of Car Shipping Companies

The most common companies advertising their car moving companies are logistics companies and  brokers. They have very different functions, but it might be difficult for inexperienced customers to tell them apart when researching their services.  

Here are some suggestions on how to determine the type of auto shipping company you are dealing with, and whether they are a vehicle transport service or a vehicle transport broker.

What is an Auto Transport Company?

An auto logistics or transport company will have their own fleet of car carriers or car drivers.  They deal directly with their customers – whether the customer is a private vehicle owner, a car dealership, or a vehicle rental company.

Related: How To Choose The Best Vehicle Transport Company

What is an Auto Transport Broker?

An auto transport broker is a third-party company that takes orders from people who want vehicles moved. They then take the orders and forward them to legitimate auto transport companies – who pay them a commission for the potential lead.

Auto transport brokers are the middlemen between customers and auto transport companies. Brokers don’t own their own fleet of trucks, so they don’t actually pick up and deliver vehicles for their customers. They “broker” their customers’ shipments to third-party carriers

This is not to say that brokers are illegal or fraudulent. However, it goes without saying that they will find the cheapest companies, and then add their brokerage commission on top of the vehicle moving fees. They may or may not be transparent about the services they offer.

How Do Customers Find Out If A Transport Company is Actually a Broker?

Many brokerage companies have websites and marketing material that look a lot like actual car transport companies. However, customers have a few options to find out whether a company is a car mover or a broker. You can just ask them upfront – the most trustworthy vehicle transport brokers will state their company policies if asked directly.

If their answers are unclear, customers can ask if they use their own drivers to transport cars, or if they use third parties. If the answers are STILL unclear, the company is either a broker who doesn’t want you to know it – which should raise a red flag about the quality of their services.

Related: Are Vehicle Delivery Companies Safe To Use?

What Are The Benefits of Transport Companies vs Transport Brokers?

With companies who use their own staff and equipment to move vehicles, you are dealing directly with the company, and can expect to be kept up to date throughout the process. You have one direct contact number or person to call whenever you have a query. You also have one company to deal with if you need to file an insurance claim.

The biggest advantage of using a car transport broker is COST. Brokers will most likely charge you a more reasonable fee than the top auto logistics companies. However, they will most likely not be able to give you the level of one-on-one customer service you deserve – and if your vehicle or fleet incur damages, you might not be able to recoup your losses.

Reddot Group Is Proud To Be an Auto Transport Company!

Reddot Group employs the most experienced professional drivers in the industry. We provide top-notch personal service all over South Africa and the BLNS (Botswana, Lesotho, Namibia and Swaziland) countries.

Our highly trained and experienced drivers know all the roads, know their paperwork, and deliver on time. Be reassured – your vehicles are alright with Reddot Group!

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