The way people are purchasing classic cars has changed a lot since the internet boom and has especially shifted since the beginning of the pandemic. More and more collector classics are being purchased online from private sellers and online auctions.
So, what should you do if the vehicle you want to buy is 2,000 miles away and you cannot see it in person before handing over your cash? Your gut tells you not to buy it sight unseen – that you need to look at it and drive it before making the purchase.
Still, it’s your dream car and sellers are telling you to use appraisers and online technology to avoid getting ripped off. Yet, you have heard about people getting ripped off buying a car sight unseen.
What should you do if you cannot see the car in person?
Here are our recommendations:
- Ask to see a copy of the title prior to negotiating to make sure the person has a clear title to the car. Make sure the title is in the seller’s name.
- Don’t buy it sight unseen. Travel and personally inspect the car you want to buy. It’s worth investing an additional $1000 in travel expenses to make sure you get what you want at a fair value. This is your best way to avoid getting ripped off. I’ve seen people too many times over the years buy a car sight unseen, only to feel ripped off after they received the car.
- Don’t rely on the appraised value of the vehicle shown by the seller. In my experience, the appraiser tends to favor the person signing the check which, in this case, is the seller. Inspect the car yourself.
If you must buy a car sight unseen, do the following:
- Ask for pictures, videos and service records. People who have a legitimate vehicle for sale tend to have lots of information about their car or truck. ALWAYS ask the seller what is wrong with the vehicle or in need of work.
- Hire your own inspector to verify the car is in the actual condition as described. Try a service like WeGoLook.com. They work in the US and Canada. They’ll send a qualified individual to inspect the classic car.
- Have a contract. Define exactly what you are buying and who does what with a written purchase agreement. Get all the details in writing about what is included and the condition of the major components of the car you want to buy. Make sure your lawyer approves the agreement and that is legally binding to both parties. Obviously, make sure both parties sign the agreement.
- Know your shipping costs in advance. I’ve seen too many people get slammed with costs when transporting a classic car across long distances. Use UShip.com to find the right carrier at the right price.
- Use an escrow service to transfer funds. Don’t just blindly wire your money to the seller you have never met. Services like Escrow.com charge a minimal amount to handle your transaction. Send the money to the escrow service and release the funds to the seller once you’ve received the car and the transaction is complete. Fees are quite reasonable, and escrow is a great way to protect your investment.
Important to note – you’ll need to register the car in your location and transfer ownership. The seller will need to furnish a bill of sale and sign back the title so the car can be put in your name. Make sure the seller has all of this documentation completed prior to transfer of funds.
If you are in Texas or looking at a vehicle located in Texas, call me at (972) 271-3579. I’d be happy to inspect and appraise a vehicle for you.