Five Tips for Buying a Car on the Internet

If you are planning on buying a vehicle and considering using the internet to make the purchase, here are 5 tips to keep in mind:

Only Buy From Trusted Dealers
While this may sound like common sense, it is the most important. Once you see a vehicle you’re interested in, take some time to research the seller to make sure the person or organization is reputable. Consider searching the Better Business Bureau to see if any complaints have been filed and read feedback from customers who have done business with the seller in the past. You should also consider asking for referrals. If the seller is hesitant, that may be a sign that they are trying to hide something.

Get a Vehicle History Report
Always ask for the vehicle’s VIN which identifies the vehicle and its history. This report will have details about the car’s condition and whether the car has been in an accident, flood or if it has been salvaged. It is also important to be sure that the odometer has not been rolled back. You can order a vehicle history report from companies like CARFAX or AutoCheck. If there is anything suspicious in the report, you should seriously reconsider purchasing the vehicle.

Leave a Paper Trail
When communicating with the seller and negotiating a deal, it is important to keep a paper trail of communication. While phone calls may be more efficient, e-mails and other written statements will give you leverage if deals or agreements are not fulfilled. While emails are not contracts, an agreement in an email will give you significantly more power than a promise made over a phone call.

Never send a check or make a wire transfer
When paying your deposit or making any other payments, never send a check or make a wire transfer because these forms of payment do not provide a similar level of fraud protection as a credit card. Instead, make payments over a secured browser using your credit card (Check with your card issuer for specific fraud protection details on your card). Look for the lock icon and websites that start with “https.” Under the Fair Credit Billing Act, you are only liable for $50 when your card is used to make unauthorized purchases and some credit cards like Visa have zero-liability protection for car vehicles. PayPal is another safe payment option that draws money from a credit card.

On eBay Motors, you may also be protected up to $50,000 through its Vehicle Purchase Protection program, which is designed to protect buyers again certain types of fraud.

Trust your Gut
If a deal sounds too good to be true, it probably is. While sites like eBay and Cars Direct may take precautions to prevent scammers from listing vehicles, it is better to be safe than sorry. Also, be careful on sites such as Craigslist which don’t offer any type of customer protection again fraud. If you’re unsure of the trustworthiness of the seller, you should consider going to a different site or just driving to a local dealer. After all, paying a little more for a car is better than the hassle of being trapped in a scam.