Nearly every lender offering bad credit auto financing only works through a dealer. However, individuals shopping online for used cars can still be duped. The potential fraud pertains to the vehicle itself, not the financing.
Michigan is one state that has a formal theft prevention program, called HEAT.
This entity has published tips for online used car shoppers.
According to HEAT Director Terri Miller, online shopping for used cars is characterized by criminal activity. This especially relates to Craigslist and other unsupervised sites. Stolen vehicle sales predominate in the online world. In spite of this, online shopping for vehicles continues, so consumers should be wise during this process.
HEAT recommends that the car buyer and seller meet at the Secretary of State office to conduct the deal during normal business hours. This enables the transfer of title to occur at the point of sale. If the other party is not willing to do this, it is a potential warning sign. It may be better not to pursue the deal.
When purchasing a vehicle online, carefully check the Vehicle Identification Number (VIN) on the seller’s paperwork, the inside panel of the driver door of the vehicle, and the dashboard of the car. If these numbers are not identical, immediately report the seller to the local police.
When selling a car, require the buyer to pay with a bank-issued certified check. This ensures that the money is available.
By following these tips, an individual will be a smart online car buyer or seller. If a car buyer has poor credit and cannot afford to pay for the car outright, bad credit auto financing may be required. In this case, the individual will usually need to use an online or brick and mortar dealer that offers poor credit car loans through a trusted lender network.
