Why Has the Car Shipping Cost Gone Up?

Did you know that between 74 and 78 million new cars are sold every year? With so many new vehicles moving to dealerships, you would assume car transportation is getting cheaper and more affordable. But do you know why it has increased so much in the last few years?

There are several reasons prices are on the up. Read on as we discuss the factors that will impact your car shipping cost.

Why Have Prices Increased Recently?

The factors that determine your individual quote can be divided into two categories. There are global and national factors out of your control, and some of which you can change. Below are the two main factors impacting all car shipping quotes.

Gas Prices

As a fossil fuel, gas is running out and becoming more expensive these days. Added taxes and fees to encourage the use of green energy have also hiked up costs. While it may seem obvious, all of this has increased the fees of car shipping beyond a level many people would expect.

Driver Shortages

The global pandemic caused a change in working patterns, with many people taking part in the great resignation. Many drivers have left the industry and even before this event, driver numbers were in decline.

Many who have stayed in the industry moved to smaller, same-day delivery work for companies like Amazon. They can get similar paid, but be home in the evening and at weekends. This has meant long haul and big haulage has suffered from a labor shortage.

Main Factors That Influence Car Shipping Costs

There are several factors that can influence your personal car shipping cost. Below are the reasons why costs may fluctuate at any time depending on your circumstances.

Distance

Distance is one of the most important factors that can influence the shipping of a car. It is logical that the further a car has to be transported to you, the more the price increases. Fuel, road tolls, and paying the driver all add up to the cost per mile.

The cost per mile can work out cheaper when doing shorter routes, though the overall price is more for longer journeys. Transportation from a car transport company may be around $2.70 per mile for routes under 200 miles, but around $0.70 to ship 1000 miles and over.

Shipping Options

There are two options available when you choose a car shipping service. Each will have an influence on the final cost.

Open transport is the most popular method. The car is placed on an open carrier with around seven other vehicles. As it is the most popular method, it provides you with more flexibility in regard to delivery times and pick-up dates for your car transportation.

Although around 95 percent of vehicles arrive unharmed, you are taking a risk. All it takes is debris from the road and you may get a car delivery that is damaged.

Enclosed transportation costs more, but your vehicle is moved in a covered trailer. This can protect your car from dust, grime, and the elements.

This extra expenditure works better if you are shipping valuable cars that have low ground clearance. If you also live in adverse weather states where ice and road salt can get on the vehicle, you should consider it for your car transportation.

Location

If your vehicle is being transported to a rural area, then the cost of shipping will be more. Big cities tend to have a lot of carriers with popular routes. The further you get from these major highway paths, the more prices will go up.

Delivering from one big city to another city is going to be the quickest and most affordable method. From smaller towns to other remote towns, you may face increased costs and delays in transportation.

Vehicle Type

The size and shape of your vehicle have an impact on the price. Taller vehicles tend to cost more, making taller SUVs more to ship than sedans. It could add as much as $100 to your overall shipping price.

Your car length works in the same way. Cars over 196 inches are harder to fit inside truck trailers, increasing the price. Generally, the bigger the car is, the more it costs to move.

Finally, the condition also matters. If you are shipping a classic that may not be working it takes more tools and labor to move it about.

Insurance

Any car shipping service will need valid insurance for its cargo. However, in some circumstances, the basic coverage may not apply to your car. If you have rare models or something else that makes it valuable, they may have to get additional coverage.

You should always ask the company what damage is covered under default regardless. No personal items are included so you need to make sure you empty the vehicle if you have not already. All of this will be added to your quote.

Ways to Reduce Costs

In many instances, the only way to reduce your car shipping cost is to shop around for the best quotes. However, there are a few things you can do to lower costs.

Start by booking as early as possible. This means the company can book a driver and truck in advance and everyone avoids having to pay last-minute prices.

Having flexibility with your dates may also help bring costs down. Some times of day, week, or year may be cheaper to move vehicles than others.

Finally, if the risk is worth it picks open trailer transportation. It is a lower price and more than likely, your vehicle will turn up unscathed.

Getting a Car Shipping Cost Quote

Now you know the factors that can impact your car shipping cost, shop around. See which elements you are able to change and adjust if you can. The more flexible you are, the cheaper it will be.

Nexus Auto Transport should be your first stop. We serve commercial and residential transportation services across the country with reliable transportation and auto shipping solutions that are fast, secure, and always affordable.

If you’re wondering how much it will cost you to ship a car with Nexus, we can help you with that. Contact us today about your next move.