For decades, the only way to buy a car was to physically go to a dealership. Now, buying a car is just a click away, thanks to online dealerships. Like anything else on the Internet, buying a car online comes with the risk of fraud. Scammers are now setting up entire fake online dealerships and ripping people off to the tune of tens of thousands of dollars. You might think you’re too savvy to get fleeced like that — who buys a $50,000 car sight unseen anyway, right? — but the risk is real. At its core, the scam is pretty simple. A scammer sets up a fake dealership website, they adjust the pricing on vehicles so they’re incredibly attractive to potential buyers, and an unsuspecting buyer takes the bait. The scam really kicks into gear when it comes time to make a down payment or negotiate a sale. Scammers typically require payment in unusual ways — normally via wire transfer — and then stop responding once they’ve got your money. A man in North Caroline lost $40,000 last year when he tried to buy a truck from a site claiming to sell repossessed vehicles at extremely low prices. If you’re thinking of buying a car online there are some things you should consider:
- • Check with your state’s Department of Motor Vehicles or Department of Transportation to see if it maintains a list of authorized car dealers in the state, and if the dealership you’re considering is on the list.
- • If it’s a local dealership, look up the phone number independently and contact them to ensure the website is legitimate.
- • Be wary of unusually low prices, an inability to physically inspect and test-drive the car, and an unusual payment process.
Buying a car online is convenient and less obnoxious than doing it in person, but it’s also a little more dangerous. A little extra due diligence can save you a lot of trouble.
