Shipping a financed car isn’t straightforward, but with the right guidance, it can be. Whether you’re relocating for a new job opportunity, sending your vehicle to a distant family member, or moving for personal reasons, the logistics of transporting a car you haven’t fully paid off can be daunting. But fear not! With the right information and careful planning, you can ship your financed car without unnecessary stress. To ensure a smooth and compliant transport process, let’s dive deeper into what you need to know.
Getting the Green Light from Your Lender
Understanding the Lender’s Position
The most critical step in shipping a financed car with vehicle transport services is obtaining permission from your lender. Since the lender holds a lien on the vehicle as security for the loan, they have a vested interest in ensuring the vehicle’s safety and whereabouts. Failing to get this permission could breach your loan agreement, resulting in penalties or even repossession actions.
How to Approach Your Lender
When you contact your lender, be prepared with details about the move—where you’re moving, how long the transport will take, and the credentials of the open transport car shipping. Typically, lenders will request a copy of the transport company’s insurance and might also ask for updates on the transport status. Being transparent with your lender will foster trust and smooth the approval process.
Ensuring Your Vehicle is Insured
Review Your Policy
Before you hand over your car keys to the enclosed vehicle transportation service. Ensure your current auto insurance policy covers long-haul transport. If it doesn’t, consider upgrading or obtaining temporary coverage. Discuss with your insurance provider the best options available for your situation.
The Importance of Transporter’s Insurance
Verify the transporter’s liability and cargo insurance by asking for proof. This ensures that in the event of an accident or damage during transit, you are not left footing the bill. If it’s a classic car shipping company, then it is most expected that they will provide you with the details of insurance coverage limits, and the claims process is equally important to avoid any surprises.
Selecting a Reliable Transport Company
Research and Compare
Finding a trustworthy auto transport company is more than just searching for the lowest price. Evaluate transporter credentials through customer reviews, the Better Business Bureau, and industry websites. Request multiple quotes to understand the average cost and scope of service offered in the market.
Understanding Transport Options
Decide between open or enclosed transport based on your car’s value and your personal preferences. While open transport is economical, enclosed transport provides superior protection from environmental elements and potential road debris, making it a preferable choice for high-value vehicles.
Common Pitfalls to Avoid When Shipping a Financed Car
Skipping Documentation
One of the most critical steps in shipping any vehicle, even if it’s with a boat transport service, especially a financed one, is thorough documentation. Before your car is loaded onto the carrier and immediately after arriving at its destination, you must conduct a detailed inspection. Here’s how to do it right:
Photographic Evidence: Take comprehensive photos of your car from every angle, ensuring you capture its overall condition and any specific areas of pre-existing damage. These images should be time-stamped to provide a clear timeline, which can be invaluable if you need to prove when the damage occurred.
Written Records: Alongside photographs, make a written note of any scratches, dents, or mechanical issues. This record should be as detailed as possible and, ideally, signed off by the transporter to acknowledge the condition of the vehicle at the time of pickup.
Condition Report: Most reputable transport companies will provide a condition report (or bill of lading) at both pickup and delivery. This document should mirror your notes and photographs. If there are discrepancies, resolve them before the transporter leaves the delivery site.
Proper documentation ensures that if any new damage occurs during transportation, you have the evidence needed to file an insurance claim and receive compensation without dispute.
Ignoring Fine Print in Contracts
Shipping contracts can be dense and filled with jargon, making them difficult to navigate for non-lawyers. However, understanding the fine print is essential to avoid agreeing to unfavorable terms:
Liability Clauses: Pay attention to sections outlining who is liable for damages during shipping. Ensure that the transporter assumes responsibility for any vehicle damage during transit, as opposed to clauses that place undue burden on you.
Cancellation and Delay Policies: Look for details on what happens if you need to cancel the service or if the transporter delays delivery. Some contracts may include penalties for cancellations or lack protections for customers against prolonged delays.
Payment Terms: Understand when payment is due, whether a deposit is required, and if the balance must be paid upfront or upon delivery. Be wary of transporters who demand full payment before the vehicle is delivered.
Reading and understanding the contract in full can protect you from unexpected fees, liabilities, and other potential pitfalls.
Failing to Prepare Your Vehicle
Properly preparing your car for transport not only helps prevent damage but also reduces the likelihood of delays and complications during loading and unloading:
Remove Personal Items: Auto transporters are not licensed to transport personal belongings inside the vehicle. These items can also shift during transit, potentially damaging the interior of your car. Removing personal belongings also reduces the risk of theft.
Fuel Levels: Lower the fuel in your vehicle to about a quarter tank. This practice is safer and reduces the weight of the car, which can help with the overall efficiency of the transport.
Mechanical Check: If your car has any operational issues, notify the transporter beforehand. Mechanical problems could include difficulties starting the engine or issues with the parking brake. Transporters need to know about any quirks to avoid mishandling the vehicle during the loading and unloading process.
These steps will ensure that your car is ready for transport and help avoid any additional fees or delays related to preparation oversights.
Wrapping It Up
Shipping vehicle across country that is financed is doable with proper planning and the right partners. You can ship your financed car confidently and securely by securing the necessary permissions, ensuring adequate insurance coverage, and choosing a reputable transporter.
Remember, the key to a successful car shipping experience is transparency—with your lender and with your transporter. Keeping everyone informed every step of the way helps protect your interests and ensures that your car arrives at its destination safely.
Ready to ship your car? If you have any further questions or need advice tailored to your specific situation, don’t hesitate to reach out. Safe travels to your vehicle!
FAQs
Q1: Can I ship a car that is still under finance?
A1: Yes, you can ship a car that is still under finance. However, you must notify the lender or leasing company and obtain permission from them, as they hold the lien on the vehicle.
Q2: What are the risks associated with shipping a financed car?
A2: The primary risks include potential damage during transit and complications with insurance claims if the car is not properly insured. Additionally, if the lender’s permission is not obtained, there could be legal repercussions.
Q3: Will shipping my financed car affect my loan or lease agreement?
A3: Shipping a financed car itself won’t affect your loan or lease agreement as long as the terms of the agreement are not violated, such as transporting the car out of the country if prohibited.
Q4: What steps should I take before shipping a financed car?
A4: Obtain written permission from your lender or leasing company.
Ensure that the car is fully insured for transport.
Document the condition of the car before shipping.
Choose a reputable shipping company.
Q5: Are there any restrictions or regulations for shipping financed vehicles?
A5: Restrictions may include not transporting the vehicle internationally or to certain areas without specific consent from the lender. Ensure compliance with both the lender’s requirements and any transport regulations relevant to your specific shipping route and method.
