When buying a used car you will find that you have many different purchasing options. Many buyers who don’t enjoy the negotiating process avoid going to the used car dealerships to buy and instead find another way to make that purchase. For those people, buying their used car online is an attractive alternative. Online sites such as Craigslist give buyers and sellers of used cars the opportunity to find great deals. However, online purchases of used vehicles can be ripe for scams and rip-offs. It is important that you know about these frauds and learn how to protect yourself.
1. Used Car Auctions
With the popularity of eBay and other online bidding auction sites cheating the unsuspecting used car buyer can be easy. A seller looking to scam you will post false information on a used car and then use programs that falsely bid against you so that they can drive the price up. Getting caught up in the auction against these thieves could have you paying more than you expected for that used car.
2. Used Car Escrow Accounts
Sending money directly to a seller just doesn’t make sense. It is common practice to have an escrow account setup such as PayPal to purchase expensive items like a used car. The escrow account is a third party who holds the money until the car is delivered and therefore insuring an honest transaction. However, some escrow accounts don’t verify that the transaction has been completed and the seller can get access to the money without delivering the used vehicle.
3. Used Car Dealer Scams
Used car dealerships that have an inventory of cars they can’t sell on their lot will try to sell them through an online classified ad site like Craigslist. However, by doing so the seller is bypassing the Federal Trade Commission laws that require dealers to disclose the car’s history. You could end up with a used car with a very dubious background.
4. Shipping the Used Car
If at all possible, make sure to take possession of the car yourself and not let the seller ship it to you. Many used car scams begin with you sending money to the seller who promises to ship the car when they receive payment. Sending the seller money first will almost guarantee that you will no longer be able to reach them and they will disappear with your money.
Getting a great deal on a used car online is still possible if you are careful and follow these simple tips:
- When negotiating the price and delivery of a used car make sure that you speak directly to the seller. Text messages and email are not a safe way of doing business.
- Make sure to ask the seller about the condition of the car, it’s currently location, and what kind of price they are asking.
- Your used car transaction should only be done face-to-face and make an effort to only buy from someone local.
- Avoid wiring money or doing a bank to bank transfer of funds. Most scams will happen most often with those types of transactions.
