QUESTION: What professional advice can you give me to protect myself regarding an out-of-country used car purchase?

October 29, 2005

Hello Tony

I need your advice on buying a vehicle from a private seller from the United Kingdom (UK). The vehicle is a 2001 BMW 740 IL with 68,000 miles. The seller worked in the United States for 2 years and bought the vehicle while in the US, so it is compatible with US standards (thus, I would not have a pay more duty taxes on the vehicle).

The seller moved to the UK and shipped the vehicle there as well. However, the seller said that there are different standards in the UK and it's very expensive to register the vehicle in the UK (very expensive duty taxes).

Therefore, he is selling the vehicle for $6,000.00 USD! The blue book value is around $25,000 (yes folks...that's not a misprint)! The seller states that the vehicle is still registered in the US. The seller is willing to pay the shipping and insurance charges. The seller will make the arrangements for shipping the vehicle from the UK to the US.

Also, the seller is requiring that payment be done via secure pay which means that a third party will keep the money until I receive and inspect the car. I will have 10 days to inspect the car.

What professional advice can you give me to protect myself regarding this purchase transaction? There are scoundrels out there. But, there are also honest people too. Who can you trust?

People may advertise a vehicle, you send the money and that's the last you hear from them. What rules should I apply to cover myself? Should I insist on a contract, and suggest a third party escrow company as well, because I haven't done business with this individual before?

I would appreciate your guidance and expertise regarding this matter. Any information that you could provide me would be greatly appreciated.

Regards,

Eric

Answer:

Hi Eric,

This is the third or fourth time I've run into this type of situation. In each case the car had a high book value and the seller in the UK had a sob story and was selling the vehicle for a small fraction of it's value.

This deal smells of fraud to me. Yeah I know, there are honest people out there, but why is he selling the car for only $6,000 if it is indeed worth $25,000? Doesn't it make sense that he would try to recoup as much as possible? He could ask $18,000 and it would still be a steal for the buyer.

It's priced this way in order to draw unsuspecting, honest people like yourself into the web.

My advice is to steer clear of this deal. You're going to end up getting screwed.

All my very best...

Tony Iorio