What is an auto transport deposit?
In the auto transport industry, when a partial amount is paid upfront to guarantee or secure a vehicle's spot for transport, it is known as an auto transport deposit. This deposit, typically a few hundred dollars, is paid to the broker company for the broker's services in arranging the shipment and also ensures commitment from both parties. The purpose of this deposit is to secure the booking and ensure that the vehicle is on schedule. This compensates the broker's services and prevents any inconvenience to the carrier in case of shipping cancellation. Most auto transport deposits are required to be paid when the vehicle is assigned to a carrier and a pickup is scheduled. However, some companies need this deposit at the time of the booking, but this is not a common practice. The brokers take this deposit via debit or credit cards that have been secured during booking. The final payment amount can be made at the time of vehicle delivery. The carrier accepts this balance amount in the form of a cashier's check, cash, or money order.