Is the used car lot becoming a thing of the past? Are the endless car-for-sale ads soon to disappear from the local newspaper?
Probably not, but virtual marketplaces like Craigslist do offer an alternative. Craigslist is the biggest and most comprehensive classified section on earth. It operates out of nine countries and over 450 cities. That’s a lot of daily transactions. Of course, all that money exchanging hands also provides the opportunity for crooks to scam the heck out of honest people.
My friend, Tim, has bought or sold a total of five cars on Craigslist. He’s not a complete expert, but knows a thing or two about the process, so I asked him for advice. Here are a few tips he shared:
- Search thoroughly and advertise effectively. The goal is to buy a car, not a pair of tube socks. Doing the proper research and preparation to get the best car or price is essential. When in the market for a car, I always check my neighborhood’s (within Craigslist) new car posts frequently. When I was selling, I posted my ’93 Honda Civic every two weeks until I finally got a response. I also include pictures of the vehicle—exterior and interior shots (at different angles). It is important to include the specs of the vehicle as well. That’s the mileage; automatic or manual transmission; past issues and history; automatic or manual windows; etc. I’m always honest and I add little touches like, “It drives like a dream.” One mustn’t be afraid to be slightly humorous or used-car-sales-man-esque. After all, the objective is to make money.
- Meet face-to-face. I always meet people I’m dealing with. I insist on it. They might say, “No, uh, I’ll be out of town” or “I’m busy all week—just send me a check.” No and no. That won’t do. I want to know who I’m dealing with. If they beat around the bush or simply say they can’t meet me at all, I terminate communication immediately.
- See the product. Laziness is at an all time high with people now buying things online that they use to try on or, at least, fidget with (clothes, electronics, etc). It’s hard to believe, but some folks would actually buy a car without seeing it, driving it, smelling it, etc. That just doesn’t make sense to me. I have to see the thing before I buy it, and likewise, make the buyer see and test-drive what I’m selling (so he can’t claim I scammed him). Remember, Craigslist is not legally “involved” in the transaction, so there is no inherent contract or warranty protecting anybody if the car is a piece of crap. Which brings me to the next point…
- Always strike some sort of contract. It can be relatively loose. It can simply summarize what transpired in the transaction. It can be short. It can be sweet. But, it must exist and both parties must sign it. It’s necessary to have a record that the exchange of funds for the vehicle happened—if only to keep for one’s personal records.
- Keep it in the neighborhood. I always deal with people locally. Sure, it’s feasible to buy a car that’s in some guy’s garage four hours away…but why? It’s a hassle. I have to drive all the way there to see it and test drive it. Then, there’s the whether I (after seeing and driving the thing) want to buy it. Subsequently, there’s the matter of transporting it back to my house (assuming I drove there in another vehicle). Too much work. Now, if my dream car is a lime-green 1975 Mercedes E-Class and this guy’s got a lime-green 1975 Mercedes E-Class, then I could maybe make an exception. But, as a rule, deal locally. Craigslist is so huge now (especially in big cities)—meaning I’ll undoubtedly find something as good or better in my respective region.
