Refusals during car shipping are rare, but when they happen, they can cause serious disruptions to your dealership’s logistics, finances, and customer relations. Whether it’s a buyer changing their mind, refusing delivery due to minor damage, or claiming misrepresentation, knowing how to respond legally and logistically is critical.
Here’s what auto dealers, brokers, and car transport companies need to do when a customer rejects a vehicle mid-transit or at delivery.
1. Understand Why the Refusal Is Happening
Before taking action, clarify the customer’s reason. Common causes include:
- Buyer’s remorse or financing fell through
- Visible damage during shipping
- Delay in delivery
- Wrong vehicle (spec mismatch, color, trim)
- Misunderstanding over terminal vs. door-to-door delivery
✅ Action step: Document the customer’s statement (written or recorded), and notify the transport provider and internal sales team immediately.
2. Know the Legal Status of Ownership and Title
In most dealership-to-customer sales, ownership transfers once the contract is signed and the vehicle is in transit. That means:
- The customer may be legally obligated to accept the vehicle.
- Refusal doesn’t void the contract unless explicitly allowed.
✅ Action step: Consult your contract terms. If the buyer signed a shipping release or delivery contract, you may be protected.
Important: If you’re offering sight-unseen delivery, include a clause that limits refusals to mechanical failure or major transport damage.
3. Communicate With the Carrier Immediately
A driver cannot legally abandon a vehicle. If a delivery is refused:
- The auto transport company must be informed right away.
- The driver may require instructions within hours to avoid demurrage or storage charges.
- Carriers may charge a re-delivery fee, or return to the point of origin.
✅ Action step: Coordinate a temporary holding location or return route quickly to minimize cost.
4. Handle Inspection and Damage Disputes Properly
Sometimes the refusal is based on alleged transport damage. In that case:
- The driver should conduct a final inspection with photos and a signed Bill of Lading (BOL).
- If the customer refuses to sign, the carrier should note “customer refusal” on the BOL and collect photo evidence.
- Dealers must file a claim through the auto transport company’s insurance, not their own.
✅ Action step: Always require detailed pre- and post-shipping photos to avoid disputes.
5. Arrange for Return or Reassignment
Options after refusal:
- Return to dealer – expect full round-trip cost and possible damage mitigation fees.
- Redirect to a new customer or branch – requires clear title coordination and updated BOL.
- Store at a terminal – carriers may offer temporary storage at nearby facilities.
✅ Action step: Prepare a return plan in advance as part of your car shipping SOP.
6. Know Your Legal Rights (and Limitations)
In most states:
- A signed contract is binding even if the vehicle is in transit.
- Customers may refuse only in cases of fraud, misrepresentation, or breach of contract.
- Delays or minor cosmetic damage are usually not valid refusal reasons.
✅ Action step: Speak with your dealership’s legal counsel if the refusal may escalate.
Also consider adding “Non-Acceptance Fee” clauses in future contracts to discourage this behavior.
7. Learn from the Incident
Each refusal is a chance to improve:
- Was the vehicle description clear?
- Was the delivery timeline realistic?
- Did the customer understand the shipping process?
✅ Action step: Add FAQ content and disclaimers to your site. Educate buyers at the point of sale about transport procedures, expectations, and responsibilities.
Final Thoughts
While rare, a mid-transit car refusal can be costly if not handled properly. Dealerships that combine strong contracts, responsive logistics partners, and clear communication will resolve these situations with minimal disruption.
Plan ahead, act fast, and always document everything.
