An increasingly disturbing trend in car shipping companies nowadays is their propensity to charge “security deposits” on new customers. Now, our focus on not charging this deposit is contrary to this trend, which does raise some interesting questions for people who are coming to us for the first time. Why do we do it? What is our plan? Does the lack of a deposit mean that we are not as good as other services?
But we believe that these questions are better answered when put into perspective against our competition. So, with this post, we hope to answer why it is that the “mandatory” deposit is, quite simply, total bull.
What Do They Say?
First, let us go over the reasons our larger competitors like to tell you. The primary reason they charge a deposit is so you can cover for gas. As you well know, gas is one of the largest expenses a car shipping company has to deal with and they state with the deposit, they won’t be losing money on the trip to your house. In other words, you are basically paying for them to show up in the first place.
Another common reason for the security deposit is the company wanting to turn a basic profit. While this is the purpose of any business, they state that with gas prices and truck maintenance being as high as it is, they will not be able to maintain themselves without the deposit. In short, with the deposit, a car shipping company will be able to pay their drivers, cover insurance in the event of an accident, and also cover dock costs in the case of overseas travelling.
But the most basic reason they cite in favor of the deposit is the simple assurance that you are serious about the move. A business only does business with their clients so they can make money; and money cannot be made if a client is not willing to go all the way in. Making the deposit more or less confirms that you are completely serious about making the move.
What Do We Say?
While on paper, all these reasons sound perfectly legitimate, each one of them comes equipped with a glass bottom that will break when you put the slightest bit of pressure on it. Their foundation is shaky at best and it is for reasons like this that we shun the concept of a security deposit.
Our propensity to ignore this common trend stems from a simple focus on people rather than numbers. We don’t want you to feel like your being taken advantage of; as a result, we have no qualms about ignoring different themes you will commonly find in our industry. The security deposit is one of those things. We mention this because this forms the foundation of our argument against a pre-arrival deposit.
When it comes to gas for our trucks, most of the time they are operated by independent contractors who cover their own gas as a business expense for their tax returns. Even if this is not the case, gas is still largely taxable credit that can be applied both on a large and small scale. A common practice nowadays for car shipping companies is to give their drivers company cards that allow them to pay for gas on the road without having to call in to the home office at every stop. So, it is simple for us to make back what we put in for gas; as a result, we don’t need the deposit to help us.
That brings us to the second point: the simple need to make profit. While of course we are concerned about this as well, a profit can be made much better by simply being a good business to both our clients and our employees. Happy workers make for higher quality, which in turn makes for an easier trip. That’s all the profit we truly need.
And then of course, there is the most ridiculous excuse of all: Assurance. No car shipping business should ask for “assurance” that you really are intent on making the move. If you weren’t serious, you would not have come to us in the first place. The idea that we can’t be sure of your intent unless you pay us is inane and treats you like a child. We don’t want to patronize you or insult your resolve.
So that is why the security deposit is an extremely silly idea and why we do not want it as a part of our business. We hope this helps to clear up the questions you might be thinking of and why we hope to not be alone in the rejection of the deposit.