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raven860's avatar

How can I verify that this business is legit?

Asked by raven860 (2179points) August 15th, 2013

So I am planing to purchase a new car and so for added research, I joined a popular internet forum dedicated to that car. Here I was contacted by a member on how to get that car for a better price through an out of state dealership. Apparently over 70 people from the forums ordered their vehicles through him. I am still a bit skeptical about it all. Is there any way for me to verify the legitimacy of this establishment?

Thanks.

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7 Answers

YARNLADY's avatar

Contact the Better Business Bureau.

hearkat's avatar

I would first just search that forum for references to the company to verify whether that many people have used it. I’d also Google the name of the company to see if there are any news or legal reports or even customer praise or complaints about it.

Generally, car pricing is fairly fixed, so go to Edmunds.com and type in your zip code and see what dealers in your state pay for those cars and what taxes and fees your state would charge you for that car; then change the zip code to the city where this dealer is located to see if those prices, taxes and fees are that much lower. I live in NJ, and people think you can go to Delaware since they don’t charge sales tax, but when you register your title and vehicle in your home state, they will charge you the tax and it’s supposed to be reported on your income taxes. You can use that information to negotiate with your local dealer.

Lastly, you have to consider the logistics and cost of getting the vehicle from that state to where you live. I can’t imagine that the savings will be that significant that it’s worth the extra trouble as well as the social impact of taking money away from your local economy. When you buy from a specific dealer, they usually give you perks if you return to them for service, like free oil changes as long as you own the vehicle and free loaner cars, so you can save more over the long term.

CWOTUS's avatar

If it’s a real brick-and-mortar dealership, with a showroom, a lot full of cars and all of that, then it should be easy enough to look up in the Yellow Pages (either paper or “virtual” online) and view it in a viewer such as Google Earth. That is, you could verify that there IS a dealership at such-and-such an address and that they have a name and phone number.

That’d give you at least a start toward knowing that “it’s a real dealership”.

However, I believe that there are also “virtual dealerships” of networked buyers and sellers who simply contract for all of the services required to detail a car for sale, to provide required maintenance, show cars to prospective buyers, etc. My boss, who is a real “car guy”, routinely contracts with people out of state whom he deals with online only, and frequently drives (from Connecticut) as far as Michigan, Pennsylvania and New Jersey to pick up cars that he has bought – sight unseen (other than photos and descriptions) – and then drives home again, and later sells himself more or less the same way.

I can tell you that my boss is “totally legitimate” in all of his dealings; if he said that a vehicle was in “such-and-such” condition, then (knowing him) I could take that to the bank. (I also know that some sellers have attempted to rip him off by selling him misrepresented vehicles, too, and he doesn’t take that lying down!)

So, that’s possible, but I wouldn’t try it myself knowing only what I know about cars.

As for “the social impact of taking money out of the local economy”, I’m trying to stifle my laughter at the silliness of worrying about that for even two seconds. One second, okay.

snowberry's avatar

This is a new car, not a used one, right? New cars have warranties, etc. that are honored all over the US. On the other hand, if it’s a new-to-you used car, car fax is “nice” but it could be a car from Canada that was wrecked, repaired, and sold here, and because of that, the car fax is clean. Or in my case, the repair was done by the previous owner, and CarFax never knew, because they only tap the files of insurance companies.

Regardless, your best bet is to take the car to a reputable independent body shop and ask them to give it the once-over (they may charge for this, but the cost might be less, than a CarFax). They should be able to spot any evidence of repairs and it certainly would be more reliable in my experience.

hearkat's avatar

@CWOTUS: So you think it doesn’t make a difference if you purchase a product from a huge mega-corporation as opposed to your local mom-and-pop shop just to save a couple bucks?

CWOTUS's avatar

It makes a difference to me, @hearkat, and it’s my money, so that’s what matters. So, yes, it makes a difference. And for the record, I don’t shop “just price”, but “value”, so I often do pay more to get more, but not “to keep the money in the community”.

srmorgan's avatar

There are legitimate auto brokers out there who can shop your specifications and find what you want at a dealer, preferably at the price you want to pay, They can help a buyer avoid the unpleasant experience of dealing directly with a local dealer or dealers. They can arrange financing or tailor a lease to your specifications. They get paid out of the proceeds of the purchase by the dealer, you won’t get a separate bill for the service.

My neighbor uses one in the DC area, we live in North Carolina, cause the guy finds him what he wants. He is a salesman and leases a new Cadillac every other year. The car is delivered to him here in town,

It is a service. You pay for it.

If you have over 70 testimonials to this outfit on a public forum, that speaks for their reliability and reputation.

SRM

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