Though it may have been unthinkable five years ago, but it’s becoming more popular to buy cars – sometimes sight unseen – over the web. Thanks to new technology and the COVID pandemic normalising purchasing at a distance, more and more people are shopping and financing their new sets of wheels without ever visiting a dealership. However, there are always risks, especially when it comes to buying used cars online. Here are some tips for shopping, financing, and how to avoid common scams.
Buying from a dealer online
Before you consider buying a car online from a dealer, you need to do your research first. Is the dealer a Licenced Motor Car Trader? Do they have good reviews? Can you speak to other customers first? Are their reviews verified with third parties? Then, you have to figure out if the car is for you. Though you may want to make a purely online purchase, you can approach dealers to test drive vehicles to see if it’s a fit for you (even if you have intentions of buying elsewhere!)
Once you’ve completed all your checks and balances, then you are all good to proceed with browsing and purchasing a vehicle from a dealer. Some dealers may even arrange to have your chosen vehicle delivered to your door as part of the service – but it may come with fees and charges!
Completing the transaction online
Thanks to fintech becoming more advanced, you can use an online broker and also apply for your loan all through the web. Credit checking, personal ID checks, and bank transfers are all largely automated (unless brokers need more information) and you could get approval within minutes to hours. Even though you can do all your banking online, only consider reputable brokers with financial and credit licences, verify they use secure and encrypted webpages (shown by the lock symbol on your browser), and have local help lines or services if you require assistance.
Avoiding common scams
“Buyer Beware” should be your watchword when it comes to buying online as con artists nowadays are far more cunning and well-prepared. Here are some of the most common scams you’ll encounter (and it’s likely you will!)
For instance, you can get a text from a scammer posing as a seller stating that they have to leave the nation because of a military or work assignment. Bottom line is, they need to sell quickly. To guarantee transportation, all you need to do is make a little deposit. After sending them a deposit, they vanish with your funds. They could even weaponize their COVID or flu-phobia, claiming that they don’t want to interact with people because they run the danger of getting sick. They could also insist on meeting after dark in an abandoned parking lot or remote location, luring you into a potentially dangerous scenario. A scammer will usually pack up and run when you suggest making the deal outside a police station!
Before you buy used – inspecting the car
Buying used cars from online car sales sites or classifieds has been popular since the dawn of the interactive web almost twenty years ago. However, you should remove a used car from your list if you cannot verify it in person. It basically means that you have to “tyre kick.” Check the car’s bodywork for dents and scratches, test the electrical system, assess how well it handles, inspect the inside for damage or stains, and, most importantly, make sure the VIN, registration, logbook, and service history is present and correct. The vehicle you are purchasing could be a write-off, stolen, or subject to financing, thus the VIN should not throw up any red flags on the Personal Property Securities Register.