If you are wondering why the car shipping cost is not the same throughout the year, then the Law of Demand is the main culprit here. It states that; whenever the demand for something rises and the supply decreases, the cost increases. Keeping that in mind, we will have a look at the disruptions that you can experience in the car transport costs and the shipping process when this happens. So let’s get started:
Prices can Increase or Decrease:
The first thing that will happen when the car transport demand increases is that the carriers’ supply will shorten. This means that because of the lack of carriers, the prices will go up. You might even have to pay a few hundred bucks more if this happens.
This does happen throughout the year, especially when the weather is bad as many carriers avoid hitting the roads during storms, and that can cause a lack of supply. Only highly experienced carriers will be willing to push the pedal, which means they will charge extra.
Similarly, if the season is slow and the car transport companies do not get enough orders to meet their quarterly targets, they will reduce the prices to increase the demand. This means you can actually get a pretty good deal.
Deliveries Can be Slower:
This is another problem that occurs when there is a lack of supply. If most of the carriers are busy completing their orders, you can get stuck in a company’s backlog of orders. If this happens when you need transport, you can kiss goodbye to fast delivery times.
Once the carriers free up the existing orders, which can take a day or two, only then they will arrive at your location to pick up your car and then the transportation process will commence.
However, when the season is slow, more vehicle shipping carriers will be available and you can expect your car to be picked up faster and delivered way ahead of schedule.
You Might Not Find a Good Company:
Whenever people need to move a car, they always go to the best and most professional auto shipping companies first. So in case of lack of supply, the industry’s big players will be overbooked and oversold first. This means if you really have to transport your car no matter what, then either you will have to drive it by yourself.
Or, you will have to settle on not-so-popular car shipping companies. If this happens, make sure to thoroughly vet the companies before hiring them.
This includes checking their BBB profile, their brick and mortar institution, asking for insurance policy and also their MC (motor carrier) number. If these things check out, only then work with them.
Remember Following Tips To Get the Best Out of Supply and Demand Effect:
- If you want to avoid high demand seasons, massive delivery times and high costs, do not ship in winters or summers. This is because snowbirds migrate to warmer regions in winters so they take their vehicles with them, which can cause a shortage of carrier supply.
- If you want the best prices, and faster delivery times, ship in the autumn season as the car shipping industry is very slow at this time, so you will get great deals.
Remember, whenever there is an increase in demand, the supply will fall short. And if this happens. You will have to adjust your budget to pay for the higher cost. This how every industry works.
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