Auto Shipping Quotes Services - Brokers vs Lead Aggregators
26.3 million vehicles were transferred alone via ferry in 2019. Such a large number indicates a high demand for auto shipping services. A multitude of customers turn to these services but not all of them go through a pleasant experience owing to wrong choices. Choosing between lead aggregators and brokers is tricky.
If you want to steer clear of any disappointment in this regard, keep on reading & make an informed decision.
Brokers Vs. Lead Aggregators - Which Serves as a Better Option for Auto Shipping Quotes Services?
Role of Brokers & Aggregators
Auto transport brokers are regulated intermediaries responsible for connecting the customers (also called shippers) with reasonable & authorized auto carriers. By law, they must maintain a trust fund or security bond of $75, 000 in order to get registered with FMCSA (Federal Motor Carrier Safety Administration). It is to ensure financial accountability in the event of contract failure.
On the other hand, lead aggregators are websites that gather customer information from shipping requests and then sell these leads to numerous carriers or brokers for compensation. They may expose the shipper to several contacts without scrutinizing their credibility, service accountability and transparency.
Comparative Analysis
| Features | Brokers | Lead Aggregators |
| FMCSA Licensed | Yes | Typically no |
| Who Receives Your Data? | Single Broker | Multiple Brokers |
| Bond Requirement | Yes, worth $75,000 | No |
| MC Number | Auto transport brokers should possess an MC (Motor Carrier) number issued by FMCSA in order to carry out the transportation process. | No MC number is required because they don’t handle or arrange transportation |
| Disclosure of Final Carrier | It is usually a standard practice for brokers to disclose the details about the final carrier. However, not all comply with this. | No such requirement exists as they just pass your details to multiple brokers |
| Auto Transport Responsibility | Brokers take the responsibility for the entire transportation process | No. |
| Customer Resolution | Yes. Disputes are handled via FMCSA complaint channels or through bonded claims. | They usually don’t follow up and the recourse is limited. They only operate as a marketing lead provider and aren’t involved in the auto transportation process. |
| Provision of Written Contract | Reputable brokers usually provide a written contract including aspects such as the quoted price, cancellation policy and delivery/pickup details. | They only forward leads and don’t enter into any written contract. Thereby, they aren’t liable to any legal requirements. |
Car Shipping Broker vs Lead Aggregators - What Differentiates Them?
Contact Volume & Spam Effect
An auto transport request submitted to a broker is typically limited to a single company, resulting in a few emails or calls. If the request goes to a lead aggregator, the information is sold in minutes to numerous carriers and brokers. Resultantly, you will be receiving dozens of emails, calls and texts especially in the first 24-48 hours, which you may perceive as spam.
Data Privacy
While consulting brokers for online auto shipping quotes, the use of your personal data is restricted solely for facilitating the shipment. Lead aggregators in general lack such transparency or privacy protection. They share the details without any consent leading to the exposure of personal information.
Service Accountability
Brokers serve as a single point of contact for the entire shipping process managing everything ranging from arranging carriers, logistics, dispatch to paperwork. Reputable brokers address all the issues directly and hold themselves accountable.
Lead aggregators don’t have any role to play once they sell the customer information and the sole responsibility lies on the broker who contacts & makes the deal.
Risk Mitigation
Brokers vet the auto transport carriers for insurance, licensing and safety records to mitigate the likelihood of any issues or risks. On the contrary, lead aggregators sell data without verifying the authenticity and quality of service offered by carriers.
When to Choose a Broker Vs. Lead Aggregator?
Choose a Broker if you want:
Better Market Negotiation
Skilled brokers have the potential to secure reasonable quotes via leveraging relationships with carriers.
Service Specialization
They can connect you with experienced carriers specialized in their fields.
Convenience
They handle all the arrangements saving your effort and time as you don’t need to coordinate with carriers.
Choose a Lead Aggregator if you want:
Fast Initial Response
You will get car shipping quotes from a large number of brokers promptly once you submit an online request for car shipping quotes.
Wide Market Reach
They can access a large pool of carriers and brokers for automotive shipping quotes.
Competitive Price Comparison
Multiple carriers will bid in an instant offering their auto shipping quotes. So, you will have the liberty to choose the option as per your budget.
How to Spot a Lead Aggregator?
Look for the following things while spotting a lead aggregator!
- There is no clue of offering direct services with no MC number mentioned.
- No display of any insurance details or FMCSA registration proof.
- After requesting, you get calls within minutes from a number of brokers instead of a single assigned contact.
- You will observe a greater focus on providing the details instead of elaborating on the services of the company.
- Look for the physical address and the Google reviews. Brokers have these details.
- Make a call asking specific questions about the shipping process. The response will give you a cue whether they are involved in the actual transportation process or not.
- Consider checking BBB profile
Related Questions
Elaborate the difference between a broker & carrier in auto transport?
Brokers connect a shipper with a potential carrier to carry out the auto transportation process. While a carrier is the actual company that owns the vehicles for transportation and carries out the procedure.
What are the disadvantages of hiring a Broker?
The potential disadvantage is that brokers keep their commission raising the price paid by you. Additionally, not all of them do their job diligently. Reputation & credibility matter.
Maria Levis 