Cash on delivery (COD) describes the part of a shipping charge that is paid to the carrier when the vehicle is dropped off, rather than in advance. In brokered auto transport, a common structure is an amount paid when the order is booked, with the balance owed to the driver at delivery. Some carriers instead bill on terms after delivery, which is more common with established dealer and auction accounts.
COD matters because it changes what has to happen at drop-off. Drivers often accept only specific payment methods, such as cash, a cashier's check or a money order, and may not release the vehicle until the balance is settled. If the receiver is a private buyer in another state, they need to know the amount and the accepted methods before the truck arrives.
For dealers selling to an out-of-state buyer, spell out who pays the delivery balance in the sales paperwork so there is no confusion at the curb. Our guide to shipping a car to an out-of-state buyer covers this handoff.
Before booking from an instant quote, check how the total is split between any amount due now and any balance due at delivery. When the driver collects a balance, make sure it is noted on the bill of lading.