Beware Of Online Auto Shopping Fraud

While you are shopping for a new car online, you will run into online auction sites and you may decide to bid on a new car instead of having to go through a dealership. While the auction site may be legitimate, you will still have to watch out for several problems along the way.

-E-mail from fraudulent sellers
-Cars that do not really exist
-Description of cars

As with any purchase you make online, you should investigate it to make sure it is real. While auction sites will do their best to monitor what people are selling and try to catch those who are dishonest, it is still up to you to make sure the deal is legitimate before handing over any money.

E-mail From Fraudulent Sellers

This is a very common scam that involves bidding on a real vehicle that is up for auction. After you bid, those who are trying to scam you will obtain your email address and send you notification that you have won the auction and the car is yours.

The email will also give you instructions on how to send the money and when the car will arrive. The money is supposedly being held in an escrow account that will not be touched until you receive the car. The reality is that the people who are scamming you out of your money only have access to that account. Once you deposit the money, they will take it and disappear.

There are ways to avoid being scammed like this, however.

Always check the auction site to see if you have actually won the car.

Since more and more of these scams are being conducted by those who are not native English speakers, you should check the email carefully for obvious grammatical mistakes.

Ask the person who sent the email why they would need an escrow account since it is in the buyer’s best interest and not the seller’s to open this type of account.

Report any strange email to the auction site. They may be able to catch the people before they disappear.

Cars That Do Not Really Exist

Another scam being used to steal money on online auction sites is placing cars for auction that do not exist. People bid on them and then send money expecting to be able to pick the car up or have it delivered within a week or so after the bidding has ended. After the money is transferred it is gone.

When looking for cars in online auctions, you should look carefully at the picture, only bid on cars that are within driving distance, and do not bid on cars that have an unrealistic price tag. You should not buy a car online without test driving it first. This is the only way to tell for sure if you are being scammed.

Description Of Cars

While many states have lemon laws, they do not always apply to cars that are sold on an online auction. Many times people will downplay damage to a car or they will neglect to mention it was in an accident and has internal damage.

When bidding on a car, you should ask for the VIN number so that you can run a car history report. This will tell you if the car has ever been in an accident. Since you will be shopping for a new car, it should not have been in any accidents. It is still wise to check anyway.

If you win the bid, you should ask for a test drive. If the person refuses, then you should refuse to buy the car. Ask the owner if the car has been in any accidents, even if it is a new car. Ask them about the car and make sure you get all the information needed to make a good decision.

You should never give out personal information online. You could become a victim of identity theft. You should ask plenty of questions about the car and insist on a test drive. Never fill out application forms for the car online as this is another way to obtain personal information.

You should always be wary of the ‘great’ deals you find online. Many times, they are not deals at all, but ways to steal your money.