Ask just about any person on the street, and he or she will tell you that this title is an oxymoron.
Well, it is not an unwarranted assumption, for there are many who in good faith have paid for online autos and who have then been defrauded one way or another; and they will not only agree, but underscore, that indeed, yes, it is an oxymoron.
Online Auto Purchase — Nightmare Scenario No. 1
The 1968 Ford Mustang that a private seller in Michigan offered for a little more than Sanderson had planned to spend was the precise car he was looking for. Precisely. Color, options, wheels, the lot.
So, his planned spending rose the 20% needed to meet the seller’s price, and he answered, yes, yes, I want to buy this car.
The Michigan seller emailed back, nice to know you, and delighted to do business. Just to make sure you know this is on the up and up, we will snail mail you a Certificate of Inspection, as well as our routing number and bank into which you should deposit 50% (plus $1,200 delivery charge) before we’ll ship the car. We trust you to pay us the remaining 50% upon acceptance of the vehicle.
Sanderson was convinced this was all on the level—the seller even had his photograph on the site that sold the car; and once he received the Certificate of Inspection, he wired the 50% plus shipping.
And that was the last he saw of his money, or the car, or the seller.
The Certificate of Inspection turned out to be a forgery. The bank account he had wired to, by the time the police inquired, had been closed. No address for the seller, and Sanderson out a considerable amount of money.
Online Auto Purchase — Nightmare Scenario No. 2
Wilson, in his fifties and a prudent man by all accounts, and a lot more business savvy than Sanderson found the very thing he was looking for in Florida. A 1976 Jensen Interceptor series III saloon, hand-built in England. Wilson had been looking for one for years.
Not the color he’d like, but he could always have it repainted.
Not cheap—well, he didn’t expect it to be. Eight emails later, and they had agreed upon a price.
And the seller, bless his heart, a man as cautious as Wilson himself, suggested they use an online escrow service to make sure the deal would go through smoothly, to everyone’s satisfaction. He even recommended a great looking company called reliable-escrow.com to handle the transaction.
Wilson visited the site, and was impressed by the professional approach to the deal it presented. He felt reassured.
Everything was in place. As agreed he deposited 50% of the purchase price (a small fortune) in the escrow account—the balance to be paid upon acceptance. Then he waited, and waited, and waited.
By the time investigators got around to it, reliable-escrow.com no longer existed (it had been registered in Russia), and Wilson had lost his small fortune.
Online Auto Purchase — Nightmare Scenario No. 3
Money exchanges hands. Shipping arrangements are made. The car arrives. Yes, it is the same year, model and color as stated in the ad, but some of the other statements stretched the truth a little. New tires, for one—these had hardly any thread left. The left headlight did not work, neither did the air conditioning, nor the rear seatbelts. This list did go on.
When challenged the seller referred to the contract which did—darn it, there it was—have an as is clause, and the agreement, not the ad, was the legally binding document here.
The buyer ended up spending an additional $2,350 on a $4,000 car to make it drivable, with no recourse to collect.
Good Intentions
Car insurance – it’s something that’s in your best interest to have, and yet something that you resent having to pay for. For many consumers having to pay top dollar for a premium is off-putting, especially when you have a good driving record. But the days of waiting in line and going from branch-to-branch to compare quotes are long gone.
If you want to make sure you’re getting the best rate possible then shop online and save. Here are some tips on how to get the best online savings and the best premium possible.
Want to save more? Then buy onlineMoving away from the more traditional methods of purchasing car insurance over the phone or at a branch might not be your cup of tea. After all, many people aren’t comfortable with change, let alone when it comes to making credit card transactions online. But if you knew that you could save an extra 10% on your premium by buying online would that change your mind?Insurance companies such as AAMI and GIO are making a transition to online sales by providing additional discounts to purchases online. As opposed to providing services that involve human resources, this is a much more cost effective exercise. Not only is this convenient for you – the consumer, but it still enables you to gain as much access to information as you could ever need. If you have a question about a products features or extras cover, product disclosure statements (PDS) are always available for you to download instantaneously. There’s no having to wait 7 days for the brochure to arrive in the mail.
Comparing quotes online
Most of the larger insurance companies like Budget Direct and NRMA all have online quotation facilities on their websites. Instead of wasting time jumping from site to site and filling in quote after quote, clever websites such as RateCity.com.au have done all the work for you.RateCity.com.au collects data from all the major insurance providers, as well as smaller institutions and credit unions, allowing you to search and compare them all at the same time. You will only be required to complete one questionnaire, and can then refine your search and compare features and costs at your leisure at your own pace. The best thing about this is that you will not only save time, but will still be eligible for the discounted online rate if you apply from RateCity’s website – and it’s free to use.
Try a new insurer
Going back to point one, making a change or switching to something new can be slightly daunting. But you’ll never know what you may be missing out on if you never try. Open your eyes to all the other products on offer out there. If you’ve been with the same insurer for years then chances are that there’s now a lot more out there on the market than there was previously. Competition for new customers in the market is so vicious that insurers are tailoring great new products, packages and deals together to stay on-top. And even if it’s not the price that’s important to you, then switching to a new insurer and new policy for better features and extras cover can’t hurt at all. Shopping and comparing online is the most efficient way of finding which insurer is the best for you. If you live in the UK sites such as Moneysupermarket and uSwitch have great comparison tables for you to compare quotes. If you’re based in Australia try RateCity.com.au. It is the first Australian site which has a car insurance comparison engine that combines live prices from credible data provider CANNEX.
The Internet has been a blessing to both the Insurance Industry and consumers who want access to a wide range of providers quickly. The benefits of purchasing your car insurance online are many, here’s a few of them.
For starters, you have an unprecedented ability to compare and contrast between policies online, simply flicking between windows, or in some cases taking advantage of specialty brokers who will send you a comparative cost quote in very short order.
If the sheer convenience weren’t enough, Insurance companies usually offer discounts if you buy your insurance online and save them the hassle of having to deal with you directly. It’s not as if talking to insurance sales people ever made anyone’s day, so you won’t miss the experience, and you’ll save some money.
Insurance companies still offer very good customer service online if you’re stumped, and making a quick call whilst surfing is much easier than waiting several days for them to send you a bunch of paper work that you may or may not understand.
Do make sure however, that your details are processed over a secure server, and that full customer service is available once you have purchased your insurance. Don’t be afraid to ask plenty of questions, and hold out for a provider that offers you a good deal and makes you feel satisfied at the level of assistance you receive.
The Internet is also a good place to check out your intended companies reputation. Others may have had problems, or good things to say about the company. Consumer websites can also offer constructive recommendations to help you on your way, and advise you on ways to keep your premiums down, such as thinking about what sort of car you’re going to buy to stay in a lower bracket, or keeping your record clean.
Buying your car insurance online is a great way to save time and money. As always though, take your time and read those terms and conditions carefully.
