I just picked this up off of omaha.com and I followed up with the three Utah based Transporters involved. In the past when a name brand new car dealer called an auto transporter, they would expect to sign the Bill of Lading and get billed for the job. But, with such a high number of dealerships having financial problems, times are changing. In this case the transporters involved (Rausch ,Crossroads West, and Deals on Wheels), asked for payment up front to make sure they would get paid. Rather than risk the checks bouncing, they requested cashiers checks. Legacy Ford Lincoln Mercury Toyota supplied all three of them with forged Cashiers checks.
Even cashing the checks before you deliver the cars does not make it safe. Once the bank determines that the checks are bad they can charge you back. If you take a cashiers check you need to verify with the bank they are written on that you are holding a valid check. It is a time consuming job but probably one that transporters will be very familiar with as we work through this tough economy.
With federal authorities involved as well as two major manufacturers it will be real interesting to see how this ends up. I hope for everyone’s sake that these hard-working car haulers get paid for their work!