However, this post is not about the people who try to sell you a car on a neighborhood lot, where you can kick the tires, look under the hood, and take the car for a test drive. This post is about that wonderful market for trading goods and services ... the internet.
According to the article "Buyer Beware" in the July/August 2012 issue of AAA Westways Magazine, online transactions involving automobiles are increasingly becoming a problem. Between 2008 and 2010, 14,000 complaints were filed with the Internet Crime Complaint Center about online car selling scams. This complaint center is a partnership between the National White Collar Crime Center and the FBI. According to FBI estimates, the victims of of online used car scams lost $44.5 million during that same three year period of 2008 - 2010.
Examples of Online Used Car Scams
There are many different approaches scammers take in trying to trick people into sending money to a fraudulent website. Here are a few examples.
The buyer bids on a car, and afterwards receives an e-mail saying that they had the highest bid. They are then given instructions on how to wire the funds to the seller, who turns out to be a foreign criminal. There is no car, and no refund.
The buyer purchases a car and then is instructed to send the money to an "escrow service" that will transfer the money once the car has been received by the buyer. Unfortunately, it is not an escrow service, and the owners of the website simply keep the money and never ship the car.
A phony auto dealer has a website that advertises cars. Buyers are told to send deposits to hold the car they want. The dealership doesn't exist. Once again, no car and no refund.
Other Problems With Online Car Sales
Even if the seller is not a criminal who is planning a complete fraud, the online buyer of a used car can end up disappointed. Sellers are not always completely honest, and the car could have dents or other problems that are not disclosed to the buyer. If you think that the car of your dreams can only be found online, you may want to take a few steps to protect yourself.
How to Avoid Problems Buying Cars Online
If you really want to buy a car online, there are a few precautions you can take that may save you from problems.
1. Purchase a manufacturer-certified preowned car from a new car franchise. For example, you should be able to buy a pre-owned BMW, Mercedes, Volkswagen or similar car from a distant dealer and have few problems. However, you do need to remember that the cars are used, and will not be in perfect condition. On the other hand, at least you will know that the car really does exist!
2. You can buy the car through eBay and use their Buyers' Vehicle Purchase Protection plan. However, this is only designed to protect you from major fraud. It doesn't make up for the fact that you are not seeing the car in person, and it could have undisclosed dents or similar problems.
3. You can pay $125 to a company called Inspect My Ride. They will go and look at the car for you. However, they do not do a complete inspection to confirm that the car is in excellent working condition, and you are not guaranteed that the car will live up to your expectations. All you will really know is that the car actually exists, and is not a complete wreck.
4. Finally, you can follow the advice written on the Craigslist website. They suggest that you "deal locally with folks you can meet in person." According to them, this will eliminate 99% of scam attempts. It is certainly something to think about!
To stay informed on a regular basis about other lies, scams and hoaxes, follow this blog at: http://lies-and-lairs.blogspot.com/
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