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Car Shipping

The Vehicle Transport Payment Process: What is “Payment on Delivery”?

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When deciding to ship your vehicle, there are many decisions that you have to make, starting with researching to find the best shipping company for your needs.
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Really, that doesn’t seem too complicated, and with a reliable, service-oriented company like ShipLux , you'll be supported by experts who can help answer all your questions.
Still, there is one question that might confuse you, and that is the question of payment. Most car shipping companies ask for Cash on Delivery (COD), or payment on delivery. But what does that mean? Keep reading to find out.

What Is Payment on Delivery for Vehicle Transport?

In order to understand the car transport process and the process of paying for auto shipping, it starts with understanding the difference between a broker, carrier, and auto transport management company:
  1. coordinate shipments using a network of carriers
  2. are the drivers (often contract workers) who operate the actual truck that will operate the truck that will transport your vehicle from pick-up to its drop off at its final destination.
  3. like ShipLux may have a fleet of their own, in addition to brokering outside contracted carriers. This allows for ultimate flexibility and full service throughout the entire process
There are many single drivers who own a truck that are carriers. They are limited to their availability and willingness to take on a job.
The advantage of using a broker—or better yet a management company--is that they have access to a larger network of carriers, which makes it easier to schedule vehicle transport in a timelier fashion. If one person cannot do it, another one will be found.

The Two Steps of Payment on Delivery Explained

Brokers will usually ask for a deposit held on a credit card to reserve your spot and get your vehicle onto the schedule. In the case of ShipLux: “The deposit amount will not be charged until the Network Carrier is scheduled for pick up.” (From our Terms of Service ).  Once that deposit has been charged, then it is considered payment in fullbut NOT TO THE CARRIER.
The second part of the payment comes at the time of delivery in the form of either a certified check, a cashier’s check, or cash—in other words COD. Personal checks and credit cards are not usually expected. Why? Because checks can bounce, and credit card payments often come with fees.
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Why Payment on Delivery?

You might be thinking, why can’t I just pay for this upfront and be done? There are benefits to everyone by using this Payment on Delivery method of payment.

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