Buying Used Cars Online
More and more people have begun buying used cars online. This page provides advice on using the internet to buy or sell used cars.
What You'll Find Here
Used Cars on the Internet
Internet Auctions
Escrow Option
Used Cars Online
It has been estimated that nearly three/fourths of all buyers of new and used vehicles visit the Internet at least once during the shopping process. By simply entering "Used Cars" in a search engine, you can turn up tens of thousands of sites. In a sense, these sites are Internet versions of classified ads - greatly expanded, improved and more convenient than a newspaper ad, certainly.
For the most part, they let you search for a specific make and model used car, in your area, and then either ask you for contact information so that the seller - usually a dealer - can contact you, or give you the information needed to contact the seller - often a private party.
Our recommendation is that you treat online used car listings the same way you would were you to search the used car as in the paper. Use it to find used cars and to get a good idea of the range of prices that a used model and year are bringing. But, ultimately, you'll need to go see the car and follow the evaluation suggestions we've outlined in Evaluating a Used Car.
Internet Auctions
Arguably the most popular site for buying used cars online via Internet Auction is eBay. Their eBay Motors pages are dedicated to providing access to used cars online. Most of these cars are offered by car dealers and wholesalers. We've talked to a number of users who feel that they were able to get a good buy and felt secure in using this method of purchase.
If this option appeals to you, then it's our strong recommendation is that you visit the site and read how it works and why they can claim that eBay has built in safeguards for both the buyer and seller. In short, read everything. Look at the list of FAQs and take a guided tour which explains how to stay safe at eBay. Then make your decision.
From our perspective, one of the drawbacks to eBay is that you're dealing in a national market. You might find a car that you like, but discover that you're in San Francisco and the car is on a lot in Miami. You'll note that in virtually every case, it's up to you to get the car home. If they ship it to you, you'll pay the freight.
Warning to Sellers of Used Cars Online:
This warning applies to virtually anything that you sell to an unknown buyer that you've reached via the Internet. There is a scam that is based on the classic Nigerian Fraud Scam that preys on unsuspecting Internet sellers. It works like this: A used car seller gets a response from a potential buyer- the scammer - who offers to buy the vehicle, but says that for some reason he will send the seller a certified check or money order for more than the asking price. Usually, the scammer provides some sort of marginally logical reason for overpaying.
The check arrives and the seller deposits it. The scammer then asks that the difference - the amount of the overpayment - be wired to his bank. He may suggest that he will pick up the car a some later date. The seller wires the money and waits for the buyer to pick up the car. He never does.
Several days later, the seller is told by his bank that the certified check or money order is a fake and did not clear. You may still have the vehicle, but guess who's out the overpayment that was wired to the scammer? Not the scammer and certainly not the bank.
If you are selling to someone that you do not know and are concerned about possible fraud, you might want to investigate and escrow service.
