Should You Only Hire Car Transport Companies That Are Not Brokers? [Solved]

There’s a lot of talk over the internet regarding hiring car shipping brokers vs. carriers and being one of the leading car transport companies; it’s our responsibility to give you a definitive answer. So let’s discuss and settle this debate of car transport brokers vs carriers once and for all:

Should You Avoid Hiring Car Transport Companies That Are Brokers?

No, you shouldn’t because brokers offer higher flexibility, extra security, better accountability, priority customer support, and an excellent overall car shipping experience. There are 345,871 registered motor carriers in the US, while only 25,603 are brokers. These numbers include all kinds of carriers and brokers, including passenger and property movers, so the number of brokers in the car shipping industry will be even lower, slightly over 7,500.

Source: FMCSA

It’s not about hiring brokers or carriers; they both are a reality of the auto shipping industry; it’s about the reputation and service quality of the company, as both can leave you high and dry if they’re not good companies. Brokers are significantly less compared to carriers, and that’s because of two reasons:

• The barrier to entry in car shipping brokerage is high
• Sustaining a business in this industry is also difficult due to competition and slow growth

So, if you’re not good at helping people safely ship vehicles, it doesn’t matter if you’re a broker or a carrier; you won’t survive long in this industry.

Anyone can be a carrier if they have a truck and they get a license. But to be a broker, you don’t just need a license. You need:

• A solid network of carriers
• A physical business place
• A team of agents to handle transports for clients
• A physical office and many other things demand money, time, and commitment.

This is why, even though hundreds of brokers pop up in the market every year, very few survive the next few years, and only a handful thrive after that. Easy Auto Ship has been one of the leading car transport brokers for over a decade, with thousands of positive customer reviews because we care. We care about you, about our reputation, and about the responsibility an FMCSA license gives us.

While direct carriers make up 93.1% of registered companies and brokers represent 6.9%, both segments serve essential functions in the logistics ecosystem.

The key factor in choosing a car transport service isn’t whether it’s a carrier or broker but its track record of reliable service and customer satisfaction.

Let’s See How Car Transport Agencies (Carriers) & Brokers Work

The car shipping industry relies on carriers and brokers to operate smoothly. Carriers are the industry’s muscle, while brokers are its brains. Both need each other to offer great services to customers. Let’s understand the common differences between them, how the industry works as a whole, and some of the issues that arise that ruin the reputation of this industry as a whole.

Direct Carriers vs Brokers: Core Differences

Direct carriers are the companies that physically move your car. They own their trucks and employ drivers to transport vehicles across the country. Some run just one truck with an owner-operator behind the wheel, while others manage large fleets with multiple drivers. Having proper MC and DOT numbers and maintaining comprehensive insurance coverage is key.

Brokers work differently - they’re the coordinators who connect you with reliable carriers. Think of car transport agencies as your personal shipping managers. They handle all the paperwork and scheduling headaches. When you work with a broker, you get one point of contact instead of dealing with multiple carriers.

Industry Ecosystem and Common Practices

Central Dispatch is the industry’s main marketplace, where all the actions happen. When you need to ship a car, your broker posts the job there. Within 24 hours, you might get over 300 quotes for a simple Florida to Tennessee route. That’s how competitive the market is.

Most carriers depend on brokers to keep their trucks filled with vehicles. It’s standard practice to pay a deposit before any transport begins. Initial quotes and final costs can vary quite a bit based on current market conditions—this is just how the industry operates.

Pass-Through Companies: A Growing Concern

One of the industry’s biggest problems right now is pass-through companies. These operations take your shipping request and keep brokering it until someone finally moves your car. In some cases, a single car shipment gets passed through 2-3 different brokers before reaching an actual carrier.

This creates serious pricing confusion. The car shipping quote you initially get often doesn’t match what you end up paying. You’ll find these companies on platforms like Shiply and uShip. The best car transport companies avoid these practices entirely.

Car Shipping Red flags to watch for include:

• Quotes that come back suspiciously fast without proper assessment
• Companies that won’t give you straight answers about which carrier will move your car
• Services that blast your info to multiple companies at once for quotes

Instead of using these quote aggregators, work directly with established brokers who have real offices and dedicated teams. Legitimate brokers like Easy Auto Ship thoroughly vet carriers through RMIS and FMCSA databases, negotiate fair rates, and manage your entire shipment from start to finish. They’re upfront about their role as brokers and focused on providing quality service rather than just passing your job along to someone else.

Benefits and Limitations of Working Directly with Auto Shipping Carriers

Working with a car transportation carrier directly instead of through a broker has advantages and disadvantages. Understanding these can help you make the right choice for your situation.

Advantages of Direct Carrier Relations

When you work directly with carriers, you get to talk straight with the driver moving your vehicle. Even some of the best rated car transport agencies once started as direct carriers.

You’ll know exactly who’s handling your car and can inspect their equipment firsthand. Since you’re dealing directly with the company moving your vehicle, there’s no confusion about pricing.

Operational Constraints

Direct carriers face several limitations that affect their service. Most stick to specific routes - a carrier based in Kansas City might not help customers in Chicago. They need full truckloads to make trips worth their time and money. Besides this:

• Equipment issues can severely impact service - maintenance downtime means no backup trucks are available
• Insurance coverage stays limited to one carrier’s policy instead of multiple options
• Support structure typically lacks after-hours assistance or dedicated customer service teams

Furthermore, geographic coverage creates real challenges. Many carriers only work in specific areas like the North East Coast corridor. They can’t just send a truck anywhere - they need multiple pickup points along their route to cover costs.

Schedule Dependencies

Timing can be tricky with direct carriers. They won’t start driving until they’ve filled their truck with enough vehicles, while open carriers need 8-10 vehicles to be filled.

Many follow fixed schedules, running specific routes on certain days only. Since they have limited backup options, you might face week-long delays if their truck breaks down.

Service Level Considerations

Equipment availability often becomes an issue with direct carriers. They may only have open or enclosed trucks, not both. Their fleet size limits what they can handle - while brokers access thousands of carriers, direct carriers might only have a few trucks.

Backup planning presents another challenge. When breakdowns happen, direct carriers usually can’t offer alternative vehicles. Unlike brokers who can tap into their carrier network for backup options, you might wait days for repairs.

Customer service also varies. Many direct carriers only operate during business hours. While you can talk directly to drivers, you won’t get a dedicated support team handling your shipment. These limitations explain why many people choose brokers despite potentially higher costs - they get more flexibility and backup options when things go wrong.

Here’s What Professional Car Transportation Brokers Offer

You will undoubtedly save some bucks when dealing directly with a carrier, but you will have a single point of contact to give you updates and everything. However, adding a broker in between offers much more value than you can get from a single carrier. Here’s how:

Network Benefits

Brokers maintain connections with hundreds of verified carriers across the country. When you need to move your vehicle, they can typically find an available carrier within 24-48 hours. This extensive network means you’re not stuck waiting for a single company’s truck to become available.

Route planning becomes much smoother with broker networks, too. If one carrier can’t complete your entire route, brokers can coordinate multiple carriers to get your vehicle where it needs to go. When mechanical problems pop up, brokers quickly tap their network for replacement carriers.

Risk Management

Professional brokers take several steps to protect your vehicle during transport. They verify every carrier’s insurance meets minimum coverage requirements. Regular checks of safety ratings and FMCSA compliance ensure carriers maintain high standards. Brokers also confirm all MC and DOT numbers are valid and current.

Service Coordination

Throughout your entire shipment, you’ll work with one main contact person. This representative handles all documentation and provides real-time updates about your vehicle’s location. If problems come up during transportation, they coordinate solutions immediately.

When unexpected issues arise, like truck breakdowns, brokers prove their worth. They quickly arrange alternative transport through their carrier network, preventing lengthy delays. Your coordinator manages all these changes behind the scenes, keeping you informed without adding stress.

Deciding Between Car Transportation Company & Carriers for Your Situation

Easy Auto Ship is a broker, but we do not oppose carriers. We believe in collaboration and work with carriers to offer our clients the best possible car shipping experience. However, sometimes people decide to just work with carriers, and if that’s you right now, make sure to go through this section of the guide so you know if it’s the right option for your specific situation.

Key Decision Factors

Your route plays a huge role in the decision. Major metro areas offer plenty of direct carrier options. However, if you’re shipping to remote locations, you’ll benefit from a broker’s wider carrier network. Many of the best rated car transport companies started as direct carriers but evolved into brokers to serve more routes.

Timing also matters significantly. Brokers can quickly source available carriers if you need your car moved urgently. Direct carriers might offer better rates when you have flexible delivery dates since they can optimize their routes. Vehicle type is another crucial factor - standard cars have more options, while exotic or luxury vehicles may need specialized handling.

When to Choose Direct Carriers

Direct carriers excel in specific situations. If you’ve worked with a particular carrier before and trust their service, sticking with them makes sense. Direct booking often works best for established relationships where you’ve vetted the carrier’s reliability and equipment quality.

• Perfect for high-value vehicles requiring specialized equipment and handling expertise
• Ideal when you operate within their established service network
• Best choice for recurring shipments on the same routes

High-value vehicles that need specialized handling fit well with direct carriers. When you find a carrier specializing in luxury vehicles and with the right equipment, working directly ensures your car gets the attention it needs. Local or regional transportation within a carrier’s established network, like a Boston to NYC route with enclosed transport requirements, typically runs smoother with direct carriers.

When Brokers Make More Sense

Brokers become invaluable for one-time or occasional shipping needs. They handle all the logistics for cross-country moves and coordinate multiple vehicle shipments efficiently. Their carrier networks provide essential coverage and flexibility for long-distance transport requirements.

• Excellent for cross-country routes requiring multiple carrier coordination
• A better option for time-sensitive deliveries needing quick carrier sourcing
• Ideal when you want comprehensive management of paperwork and tracking
• Perfect for coordinating multiple vehicle shipments simultaneously

Broker services greatly benefit time-sensitive deliveries. They can quickly find replacement carriers if any issues arise during transport. Their hands-off approach works perfectly when you want the company to manage everything, from paperwork to tracking. For multiple vehicle shipments, brokers coordinate complex logistics and scheduling that would be challenging to arrange with individual carriers.

7 Best Practices & Due Diligence When Working With Carriers or Brokers

Whether you hire a broker or a carrier, being careful with the whole process always pays. Both can have bad experiences and provide the best car shipping services. You must do your due diligence, hire the right carrier or broker, and ensure accountability throughout the process. Here’s how to do that:

Verifying Company Legitimacy

The FMCSA database serves as your first line of defense when checking any car transportation company. Every legitimate carrier or broker must have active MC and DOT numbers listed in the database. Take time to review their safety ratings and violation history - this reveals more about their operational standards than any sales pitch.

Payment and Contract Protection

Never pay the full amount upfront - this is a huge red flag in the industry. Standard practice involves a small deposit ($150-250) that’s refundable if canceled before carrier assignment. The balance payment happens after delivery and inspection. Written price guarantees protect you from hidden fees or surprise charges.

• Get detailed pricing breakdowns showing all fees upfront
• Confirm fuel surcharge policies before booking
• Understand payment terms and acceptable payment methods

Documentation Requirements

Proper paperwork protects everyone involved in the transportation. Before loading, complete a detailed vehicle condition report with photos of any existing damage. Get everything in writing, from price agreements to delivery timelines. Keep copies of the bill of lading, insurance certificates, and all communication records during transport.

Communication Protocols

Clear communication prevents most shipping problems. With brokers, you’ll work through their customer service team for updates. Direct carriers provide driver contact information for immediate updates. Either way, expect confirmation of pickup, regular transit updates, and advance notice of delivery schedules.

• Request daily location updates during transit.
• Save all written communications about your shipment
• Get emergency contact numbers for after-hours issues

Quality Assurance Steps

A pre-transport inspection report is critical. Keep your fuel tank under 1/4 full, remove personal items, and remove toll tags. Document the vehicle’s condition thoroughly with photos and notes. Smart shippers check basic mechanical elements like tire pressure and fluid levels before transportation.

Cost Management

Control costs without compromising service by getting multiple quotes—aim for at least 3-5 different companies. Consider open transportation instead of enclosed transportation—it could save you 40-50% on shipping costs. Flexible pickup dates often lead to better rates, especially during off-peak seasons.

Issue Resolution Process

If problems occur, document everything immediately. Never sign the final delivery receipt until you’ve thoroughly inspected your vehicle. For damage claims, take detailed photos and contact the carrier or broker before signing anything. Most legitimate companies resolve damage claims within 30-90 days when properly documented.

• Report issues immediately - waiting reduces your chances of resolution
• Keep copies of all damage documentation and communication
• Follow up regularly on open claims or disputes

Remember, the key lies in thorough preparation and clear communication throughout the process.

Easy Auto Ship is Among The Best Car Transport Companies For Seamless Vehicle Shipping:

Car transportation can be the best possible solution for your vehicle moving needs if you manage to hire the right transport agencies. Easy Auto Ship is the solution for you! We have a network of thousands of carriers and regularly ship hundreds of vehicles to them. No matter the route, time of year, type of vehicle, or distance, you can count on our professional services. We’ll move mountains for you; that’s how committed we are. So call (888) 687-3243 or use our free auto shipping cost calculator to get the no-obligation vehicle moving quotes and start quickly!