Do your homework before you buy a used car online

by PAUL WENSKE

The popularity of buying a used car for less over the Internet continues to boom.

By some accounts, 30 percent of auto transactions now take place on the Web. Some of these transactions are direct, while others involve auction sites, including eBay.

While the vast majority of online sales take place without a hitch, the anonymity of the Internet can make it hard for consumers to tell a bargain from a wreck. In my research, I've come across glossy-looking Web sites that mask fly-by-night operations run from the back of car washes and taco stands.

Problems occur when people don't take basic steps to check out a car or truck they see advertised on the Internet.

Most consumers wouldn't think of buying a car through a newspaper classified section without first looking at it and getting behind the wheel. But too often they will buy a car off the Internet sight unseen.

The National Fraud Information Center's Internet Fraud Watch reports many complaints from people who buy cars that don't exist or are delivered without titles or have problems that weren't disclosed, such as accident and flood damage.

Still, it's hard to know how big a problem there is. States regulate sales and dealers. But online auctions face limited liability under federal law, which encourages Internet commerce.

As a result, you might compare Internet auctions today to giant flea markets.

Often, auctions connect a buyer in one part of the country with a seller in another. And it can be expensive to hop on a plane to visit another city to test-drive a car that caught your eye.

But there are a growing number of tools consumers can use, for a price, to help make more objective decisions. It may make sense to invest at least part of your savings in using one or more.

For instance, if you don't want to go to the trouble of hiring your own inspection expert in a distant city, you can hire one through Carchex (www. carchex.com) for $99.95.

"We provide a national inspection service," said Jason Goldsmith, head of the company. "We have 900 inspectors. We will send an inspector to the car and do a 155-point inspection." He said the inspectors are certified by the National Institute of Automotive Service Excellence.

The inspector will test-drive the car and also take independent photos.

"These are a little different than the sellers may provide," Goldsmith said. "Sellers may not give all the details. We try to play an impartial role — we are just trying to level the playing field between the seller and the buyer."

An inspection can assure you, among other things, that the car isn't pitted with dings, the air conditioning works, the tires have tread, the windows go up and down, and the brakes work. You can also learn if the car has a peculiar odor that might be evidence of flood damage or a new paint job that suggests an accident.

"We catch a lot in the test drives," Goldsmith said.

One caveat is that Carchex does not put the car up on a lift or perform an engine diagnosis. But Goldsmith said you can buy an extended warranty. The average price is about $1,700 for five years and 100,000 miles. Shorter warranties are available.

Even if the inspection checks out, you should still do a little research on the best price for and the past history of the car.

You can research reviews and fair market values on used cars at a number of Web sites, including Edmunds.com, Kelley Blue Book, Cars.com and CarsDirect.com.

In addition, the AAA car club advises consumers to get the car's vehicle identification number and run the car's history through Carfax.com, at a cost of $24.99 for a single vehicle check.

A vehicle check can turn up problems in the chain of title, cases of suspected odometer fraud and other red flags, including whether the car was branded, indicating severe flood or collision damage.

One caveat here, too. While Carfax says its access to 4 billion records from public and private sources is the most comprehensive database available to consumers, it acknowledges that the database may miss some problems. Still, it's a good start, if not a definitive one, experts say. The alternative is to end up with a lemon.

Online car-buying tips

• Check the car or truck out yourself, if possible.
• Check with state regulators to see whether an auction dealer in that state is licensed.
• Check whether an online auction allows you to review a seller's record.
• Check whether the auction offers limited protection plans covering mechanical problems.
• Compare with direct-buy Web sites, such as Autobytel.com or Autotrader.com.
• Read all the fine print.

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