If you have been contemplating purchasing a car at an online car auction, you may know and be worried about the possibility of being scammed. But it may come as a sigh of relief to you when we tell you that scams at online car auctions are rare and that most online auction sites are very reliable and work according to stringent standards. However, because you are doing all interaction online and not in person, you should be mindful of the following:
1. Make a Phone Call
Call the seller to find out where the car is located. You should ask if you can inspect it on site, you should ask if they have the title. You should not hesitate to walk away if he or she shows any sort of hesitation.
2. Verify the Escrow Company
Always ensure that the escrow company you work with is properly licensed. You should also always speak to a representative. Never use the link which the seller provided. Also, check the escrow company’s website for potential red flags. For example, sloppy grammar or too many spelling errors is one indication that the escrow company may not be trustworthy.
3. Don’t Share Personal Information
You should give an escrow company your personal information only when you know it is genuine. Personal information includes your social security number or your bank account number.
4. Don’t Pay Online into an Escrow Company
If an escrow company asks you to send money in a person-to-person money transfer or to an individual and not the company, don’t do it. These types of actions are a red flag that the company is not legitimate!
5. Google the address
Google the dealership’s address to see if it is registered to any other legitimate business. If it is, and there is no link between the two companies, it is probably a scam.
6. Check Google Maps
If you search the address on Google Maps, you will get an accurate view of the street as well as satellite imagery of the location. This will show you if the dealership actually exists.
7. Ask for a bill of sale
7. Ask for a bill of sale
You need to get a bill of sale before you send money to the dealership as proof that a junk car for sale has been made. You need to ensure that the bill of sale has a company header with the correct address and purchase amount. It also needs to have a signature. You should always wire money to the names mentioned on the bill of sale.
8. Get a copy of the title
A vehicle can not be exported from the United States without an original title. You should always ask for this before sending funds to make sure that it actually exists and that the dealer is in possession of it.
Wrap Up
It goes without saying that you should only bid for vehicles on verified and reputable sites. You should never give out your personal information. And you should deal with a proxy bidder who is known and reliable. You can get great deals on online vehicles, but only if you are very careful, and only if you do your research beforehand.
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