You've found the car of your dreams but unfortunately, it's on the other side of the country. Conventional wisdom tells you not to buy it until you've physically inspected it. Can you still make sure it's not a lemon and put it in your driveway at the right price?
These days, many perfectly happy owners have purchased cars sight unseen. The key is to use Internet tools and services that weren't available even 10 years ago. If you leverage the power of these innovations, you have a much larger pool of vehicles to shop from and can often find a better bargain.
Exploit Regional Differences
Certain cars sell at a premium in some sections of the country due to regional preferences. For example, the affordability of all-wheel-drive Subarus makes them strong sellers in the Northeast and Northwest. Someone who lives there could shop for a Subaru in other areas of the country, perhaps the South or Midwest, and probably save more than enough to cover shipping.
This is just one example of the new wave in car shopping that has been ushered in by eBay Motors, Autotrader.com and even Craigslist.org. These sites allow buyers to use filtered searches to connect them with just the right cars.
But the fact remains that most car buyers want the security of physically inspecting the car to make sure it is what they want before they buy it.
Gauging Photos
One online buyer we interviewed told us, "I've done at least 100 transactions over the Internet and I've never had a bad experience." However, another experienced car shopper flatly stated, "I'd never buy a car sight unseen. Everyone lies about something." Clearly, there are many different types of car shoppers who require different levels of detail before they will make a purchase.
Nearly all online ads these days include digital pictures. But many of them are poorly framed and show little more than the outside of the car. Focus on cars with a complete set of pictures that show high-wear areas such as the driver seat, the front end (often pitted or dinged from parking) and the underside, which may have been scraped or damaged.
A photo showing tire tread is also useful, since a new set of tires can run $500 and drastically alter the negotiated price. Make sure the photos are current, and look for ads that actually call out damage, as it may indicate a seller who is providing full disclosure.
Vehicle History Reports
Many car ads provide the vehicle identification number (VIN). Using this 17-digit number you can run a vehicle history report through a service such as Carfax or Autocheck. Reports can be paid for individually or with a monthly subscription.
We recommend that you buy a monthly subscription when starting your car-buying process, and be sure to run a vehicle history report on any car before you purchase it. The vehicle history report will throw up any red flags about potential problems including salvage titles (from a serious accident or flood damage) prior accidents, multiple owners and odometer rollback.
Mobile Vehicle Inspections
If you're considering spending $20,000 on a vehicle, it makes sense to spend $100 to inspect it. If you have a friend in the area where the car is located, you can send them to take a look at the car. But unless your friend is a mechanic, you should hire a mobile inspector such as Alliance Inspection Management or the service advertised on eBay Motors, SGS to look over your planned purchase.
Usually, these inspectors can generate a report within 24 hours. While they don't test-drive the car, they can often detect frame damage, evidence of serious accidents, dings or paint damage and interior wear and tear. Knowing exactly what shape the car is in will give you the ammunition you need to negotiate intelligently. It can also prevent you from buying a lemon.
Close the Deal Remotely
You don't want any money to exchange hands until you've taken possession of the vehicle. The seller doesn't want to ship the vehicle until you pay for it. How do you break this stalemate?
One solution is to use a service such as Escrow.com. Basically, this service acts as a middle man to verify that payment has been made so the seller can release the vehicle. Since it's a neutral source, both parties are protected if anything goes wrong.
Arranging Shipment
Shipping vehicles coast to coast used to be out of the ordinary for the average consumer. But most shipping services have opened their operations to individual buyers. This means you can shop nationwide for your next used car and have it shipped to your door. Direct Express Auto Transport is just one company that works with individuals. Google "auto shipping" and be sure to compare rates.
Remember that you need to save enough money by buying remotely to cover this cost. It also can take several weeks to finally receive the car.
Avoiding Fraud
Online car buying has become the target of scammers who are often overseas. In some cases they are advertising a car that doesn't exist. They pressure interested buyers to send money to bogus escrow agencies, keep the money and then fold up their tent and move on.
Online fraud is not hard to avoid, and the best defense is just plain old common sense. For starters, it is essential to make phone contact with the buyer and verify that the car actually exists. This can be combined with any follow-up questions you have about the vehicle's conditions or to discuss payment details and arrange delivery. Remember, legitimate sellers will be open to phone calls, while con men will try to hide behind e-mail.
Cost and Selection
While there is more risk when buying a car sight unseen, there are several advantages, including lower cost and a larger selection. But remember not to cut this process short: The name of the game is verification and communication. If both these aspects are covered, you are well on your way to a smooth transaction and a great used car deal.
