You Can’t Kick Tires Online, but Hassles Can Be Avoided
Buying and selling used cars shouldn’t have to be an ordeal.
Of course, there are honest buyers and sellers out there. But if you’ve ever encountered an unethical used-car salesperson or a dishonest buyer, then you know that vehicle transactions can be about as pleasant as having your fingernails pulled.
Even if you bypass a dealership and decide to buy your dream car from a private party, you may end up spending hours scanning the classified ads or auto sale magazines that cater to buyers and sellers of used vehicles.
If you’re lucky, your hot prospect ends up being only a mile or two away. Then again, you could be unlucky enough to drive 20 miles in rush-hour traffic to check out a vehicle, only to learn it was sold to someone else while you were idling on the freeway.
Sellers of used vehicles have their woes. No-shows who break appointments and worries about dealing with unsavory types can be a hassle. Then there’s the negotiation process, which can be difficult no matter which side of the transaction you’re on.
So it’s no wonder that many buyers and sellers of used and collector vehicles are doing business via the Internet--an electronic marketplace in which there’s no face-to-face haggling or creepy guys coming to your house.
When buyers go cyber shopping for a used car, they are “really in the driver’s seat. They control the process and can shop whenever they like,” says Simon Rothman, vice president and general manager of EBay Motors.
There are numerous online services geared to buying and selling used vehicles, classic cars and exotics. For instance, IMotors.com (www.imotors.com) allows users to order a certified used car and have it delivered. New-car seller CarsDirect.com (www.carsdirect.com) recently launched a used-car program, and Usedcars.com (www .usedcars.com) says it carries more than 400,000 used-car listings online.
Cars.com (www.cars.com)--a car-buying information company in which the Los Angeles Times’ owner, Tribune Co., holds a stake--includes used-car listings on its site, and AutoNationDirect.com (www.autonation.com) helps buyers search for cars, compute monthly payments or find a dealer in their area.
Carfax.com (www.carfax.com) provides vehicle history reports. Kelley Blue Book’s Web site, www.kbb.com, offers information on used-car values and prices. Consumers can compare state automotive “lemon” laws on www .lemonlawamerica.com. There is even a site--usedcarbuyingguide .com--that offers tips for women.
EBay, though, claims to be the Internet’s largest marketplace for buying and selling used cars, motorcycles and anything automotive. More than 7 million people use the Internet auction site www .ebaymotors.com every month. Rothman says he expects more than $2.6 billion worth of vehicles to be sold through EBay this year.
The primary reason is that bidding online for a used vehicle eliminates the “contentious nature of the relationship between buyer and seller,” Rothman says. Consumers have indicated in surveys and studies that of all the aspects of buying a car, the negotiating process is the most disliked.
If wheeling and dealing online still makes you a bit squeamish, the site has launched EBay Assurance Program for Vehicles, a service designed to make selling and buying a vehicle online safer. Consumers are offered limited warranties, purchase insurance, payment protection and mobile vehicle inspection. Some of the services are free; others can be purchased by buyers and sellers.
The limited warranty is free and offers protection for one month or 1,000 miles against major mechanical failure of the powertrain. Purchase insurance--maximum $20,000 with a $500 deductible--also is available at no cost that protects buyers against fraud or material misrepresentation of any passenger-vehicle purchased on the EBay Motors site.
EBay’s $99.95 mobile vehicle inspection plan provides a thorough assessment of the vehicle by a professional inspector. Sellers can buy an inspection and post the results online to give potential buyers some extra assurance. Or buyers can pay for the inspection if the seller won’t, and make a purchase agreement contingent on the results.
If sellers or buyers are caught misrepresenting information, EBay Motors will “expel those folks from the site,” Rothman says. Interestingly, he says, “there is a lot of self-policing on the site that prevents bad things from happening.”
A feedback rating that allows buyers to view a seller’s track record online is crucial in making users feel safer purchasing vehicles via the Internet. You can get a fairly good idea of how trustworthy repeat sellers are by reading previous buyers’ comments.
“It’s like going to a dealership and seeing a report card from everyone who ever purchased a car from them posted outside the door.... Not everyone needs to kick the tires on a vehicle” before they buy, Rothman says.
As far as pricing goes, there are some good deals online. But if you live in Los Angeles and are buying a vehicle from a seller across the country, there could be hefty shipping fees involved. Although the buyer typically pays for shipping, the parties often negotiate an agreement to split delivery fees, Rothman says.
No question, buying or selling vehicles online offers convenience and privacy.
But I disagree with Rothman’s assertion that the Internet has made “kicking the tires” no longer important to consumers.
Maybe I’m old-fashioned, but I can’t get used to the idea of purchasing a car based on a photo and description posted on the Internet without checking it out myself and taking a test-drive.
It sounds a little too much like buying a mail-order bride.
