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Cedar Rapids, Iowa 52401
From the Bureau: Buying a car online
While buying a car online can help a buyer stay detached, it also provides opportunities for scams
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What comes to mind when thinking about purchasing a car? For many, it's driving from dealer to dealer searching then hours in an office haggling while trying to understand the financing and payment terms. Given the stress often involved in buying a car in, many dealers are simplifying the process by moving it online. However, this option also creates new opportunities for scammers.
Why buy a car online? One perk is that there is less emotion involved. It's easier to stay detached and could help with a clear-headed purchase. Discussions about pricing or financing generally comes through email, meaning everything is in writing and can be thoroughly reviewed.
How to buy a car online
Set a budget. It is crucial to establish a budget. Factor in the monthly expenses of owning a vehicle. A clearly defined budget makes choosing a car, negotiating and getting a loan more straightforward.
Do thorough research. Assess personal needs first. Narrow down makes and models then check ratings, reviews and warranties. Visit manufacturer websites details like MPG, options, cargo space and more. Get a vehicle history report to verify condition, mileage and accident damage.
Shop for a deal. Look for deals including cash-back, rebates, special financing options, or price cuts on previous year models which could mean extra incentives.
Prequalify for a loan. Prequalifying for a loan can set a reasonable price range that fits the budget and maintains a price limit for the sale. Dealers offer in-house financing for consumers so it's important to compare.
Search dealers for inventory. Search for a specific car or browse a dealer's inventory online starting with a local search and expandit if needed. Visit online showrooms then check the dealer business ratings, reviews and complaint history on BBB.org.
Speak with internet sales managers. During your initial conversations, focus on the desired vehicle, whether they have or can get it and the price. Arrange a test drive and if purchasing a certified pre-owned vehicle obtain those details.
Test drive the vehicle. Always take a test drive before signing the paperwork. There is no substitute for seeing a car in person, sitting in the driver's seat and ensuring everything looks and runs properly. If indicated get an independent inspection.
Complete the sale at the dealer or upon delivery. If everything checks out, decide how you will complete the sale. It is likely necessary to sign the final paperwork in person.
Avoid online car sales scams
Scams involving vehicles, especially vintage and collector cars are common do exercise extreme caution. There are reasons to be leery as sites with stolen listings and pictures pop up frequently.
- Watch out for too-good-to-be-true deals. They are most likely a scam. Scammers steal consumers' personal information and money by offering cars at extremely discounted prices. Overly generous warranties or return policies are also red flags.
- Do not wire funds or complete bank-to-bank transactions. Scammers love this kind of transaction because it is impossible to get the money back once it is completed.
- Contact the seller by phone. Speak with the sales manager and if vague about details of the sale or unable to confirm the vehicle location, it's most likely a scam. Do not reply upon communication exclusively by messaging or email.
- See the car first. Never ever buy a car without making an in-person inspection and taking a test drive first.
- Beware of fake vehicle shipping services. Scammers may provide convincing looking shipping sites. Verify all third-party services independently and don't click on links the seller sends.
- Don't give in to pressure. Scammers often exert pressure to share personal information or make a down payment before thoroughly considering the purchase. Take time and think. Trust any uneasy feeling and contact the BBB for advice.
- Don't trust a seller or buyer who says the transaction is "guaranteed" by eBay, PayPal, Craigslist, or another online marketplace. These sites explain they cannot guarantee that people using their services are legitimate. Anyone who says otherwise is lying.
Bobby Hansen is regional director for the Better Business Bureau Cedar Rapids office. Comments: (319) 365-1190; info@dm.bbb.org
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