The Internet makes many shopping experiences faster, more convenient and potentially less expensive. Scams and fraud make big online purchases, like a car, more dangerous as well. Information and awareness go a long way toward making sure you don't fall victim to an online auto scam.
The Basic Auto Scam
Most online auto scams targeted toward buyers follow the same general formula. First, you see an ad online for a car that looks like a great deal. You contact the seller and are informed that you won't be able to inspect the vehicle or meet the seller at all before money changes hands. The reasons for this range from stories of financial desperation, another buyer is ready to make the deal ahead of you or other seemingly logical excuses.
The auto scammer will then have you make a payment toward the car or pay for the vehicle in full by using a third-party payment website. To make you feel more at ease with the payment process, you are told that the transaction is protected by one of the name brand e-commerce companies. Person-to-person online transactions are common among reputable companies, which makes the scam seem legitimate at a glance. After you process the payment online and the money changes hands, the scam is complete, you won't receive a car and your money is gone.
Auto Scam Warning Signs
Not every online car seller is trying to perpetrate a scam; there are honest used car sellers out there. You need to know the warning signs to look for while browsing online car ads so that you can separate the real ads from the possible auto scams.
An asking price for a good or fair condition used car that is well-below its fair market value is a common and obvious auto scam warning sign. You should also be wary of a seller who requires the payment process be moved off of the original website on to another or if the seller insists a buyer or payment protection policy from a large company covers the transaction being handled elsewhere. Another auto scam warning sign is a detailed backstory being given as a reason for expediting the sale. Most importantly, you should only agree to buy a used car after seeing it in person. A photo can never give you a complete and accurate assessment of a car's condition.
An online auto scam can cost you thousands of dollars and stop you from buying the vehicle you need. These scams can be avoided with cautious and attentive online shopping habits.
* Image courtesy of freedigitalphotos.net
