If you want to buy a used car, it is a huge expense. If you buy a car online, the element of risk is increased. This is where we are here to help.
As a used car buyer, if you want to buy a car online, you need protection to ensure you get what you paid for. It is commonplace, that an otherwise seemingly good vehicle on the outside can have major internal issues. In some cases, these faults could cost you even more than you paid for the car to put right. Doing a vehicle inspection yourself will only get you so far. The sensible option is to have a mechanic look over the car. However, this is not always possible before you buy the car. Shipping is another factor you need to consider. If the car does not arrive in the same condition it was when it was purchased; there may be little recourse in getting your money back. This is very often the case if you buy a used car.
What Can You Do to Protect Yourself Against Automotive Fraud?
Thankfully, there are a number of steps you can take, which can help protect yourself and your money when buying a used car online.
Many marketplace websites provide a rating system for sellers which incorporates the reviews as provided by previous customers; it may also include comments or feedback from the seller. Reading these thoroughly before engaging an individual will help you weed out the potentially unscrupulous dealers who will have a lower rating than the genuine sellers on the platform.
Using legitimate payment channels can help reduce your risk of fraud. Some payment providers will provide you with some protection against fraud. Keep in mind, though, that not all payment providers were created equal. For example, PayPal does not cover the buyer if the car did not arrive as described for all automotive purchases.
Using an audited, bonded escrow service eliminates fraud from all your transactions. This is because, in an escrow transaction, you can stipulate the terms of the inspection period and can include provisions to have a mechanic inspect the vehicle. If the vehicle does not pass the inspection, you can send the vehicle back, and your escrow provider will disburse your funds back into your bank account.
Escrow.com is the world’s largest provider of online escrow services.
Our 5 easy steps to stop fraud in its tracks. Escrow.com protects buyers by only releasing the funds to the seller if what you receive is exactly what you paid for. If it is not, ship it back to the seller and you will get a full refund.
Escrow.com also provides several additional motor vehicle services to give you peace of mind. Lien Holder Payoff services guarantee there is no outstanding debt on the car, giving you confidence when you buy. If the car is already clear of debt, our Title Collection Service ensures you get the title before your funds are disbursed, taking the hassle out of the legal ownership transfer.
|Buying a Used Car||Selling a Used Car|
|Click here for a comprehensive guide to buying used cars online.||Click here for a comprehensive guide to selling used cars online.|
The Benefits of Using Escrow.com
Both the Buyer and the Seller benefit from using Escrow.com as a neutral third party to monitor and transact the exchange of the payment and the vehicle.
Peace of Mind for Vehicle Sellers
The Buyer sends the agreed-upon payment to Escrow.com. After verifying funds, we alert the Seller to send the vehicle to the Buyer. Protected from fraudulent checks and money order scams, the Seller has peace of mind knowing funds are behind the Escrow.com shield.
Confidence for Vehicle Buyers
As the buyer, you get the confidence that the car or vehicle is exactly what you paid for. If it isn't, ship it back to the seller and we will refund your money, straight back to your wallet.
The low cost of our secure auto escrow service is either paid by the Buyer, the Seller, or shared between them.
|Vehicle Amount||Escrow Fee|
|$0-$5,000||3.25% ($10.00 minimum)|
|$5,000.01-$25,000||$162.50 + 0.26% of amount over $5,000|
How to Use Escrow.com for Buying and Selling Used Cars
Get Complete Confidence When Transacting the Sale or Purchase of a Car
Transacting a car sale or other vehicle sale online involves the exchange of large sums of money between potentially unknown parties. Avoiding fraud is imperative for both buyers and sellers. Fortunately, Escrow.com's simple 5-step process ensures money transfer and vehicle delivery with every sale. Escrow.com will ensure every party receives what was agreed on, every time.
- Buyer and Seller Agree to Terms - The Buyer or Seller can initiate a vehicle transaction. All parties have an opportunity to agree on the terms of the transaction, including shipping fees and inspection periods.
- Buyer Pays Escrow.com - The Buyer submits a payment by approved payment method to our secure Escrow Account. Once Escrow.com verifies the payment, the Seller is notified that funds have been secured 'In Escrow.'
- Seller Ships the Vehicle to Buyer - Upon payment verification, the Seller is authorized to send the car via the agreed shipping method. The seller submits the tracking information to Escrow.com who verifies that the Buyer receives the vehicle.
- Buyer Accepts the Vehicle - When the buyer receives the vehicle, they have a number of days equal to the agreed-upon inspection period to inspect the vehicle. If the vehicle meets the requisite standard, the buyer informs Escrow.com they have accepted the car.
- Escrow.com Pays the Seller - Escrow.com releases the funds to the Seller from the Escrow Account.