Four Factors That Can Affect Vehicle Shipping Rates |
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Kate Barton
20 September 2012
If you are relocating to a new home and you have decided to avail of vehicle shipping services to help you in transporting your car, then you might already be wondering why some companies charge higher than others. For you to understand why this is so, it's important for you to learn the different factors that can influence auto transport prices. The four most important elements that determine the cost of shipping are outlined below:
Type of vehicle - The Federal Motor Carrier Safety Administration is a governing body among car shippers that sets out rules to ensure safety during car transport, not just for the vehicles being shipped, but also for the drivers and the general public. One of these rules involves setting restrictions on the size and weight of carriers. Vehicle shipping companies will usually try to make the most of these restrictions by fitting as many cars in a carrier as the rules will allow. Of course, bigger and heavier cars like SUVs will take up more weight and space, possibly reducing the number of cars that can be shipped. To make up for this loss, car shippers will charge more for such vehicles.
Distance to be covered or location for delivery - Driving consumes a lot of fuel, and since fuel costs money, it only makes sense to charge more especially when the distance that has to be covered is longer. However, the distance by itself is not the only factor that can determine price. In some cases, deliveries in far-off destinations may be charged less. This occurs when the delivery location is on a commonly used route, and also when there are many clients to be serviced in that area.
Type of carrier used - Shielding your car against the elements is a value-added service that of course, will take some resources to provide. Open car carriers do not offer any protection against the elements, and as such will not cost much. Enclosed carriers, on the other hand may cost more. Soft-side types only provide a canvas covering that can still be breached by hard elements like stones or hail, while hard-side carriers come with a strong exterior that can withstand such harsh elements.
Overhead costs - This is perhaps the one factor that can vary greatly among companies. Included in overhead costs are not just expenses for maintaining equipment or providing salaries for the best drivers; overhead charges also include the cost of running the business and placing advertisements in papers. This means that companies that charge exorbitant prices may not necessarily be the best in the area; it's likely that they're simply making up for the cost of advertising. So don't dismiss auto shippers that charge lower vehicle shipping rates, since it's possible that they can do this because of less overhead costs.