Ebay motors and other online buys have risks

More and more people are buying cars, trucks and motorcycles through online auction houses such as ebay motors. Be aware that like any used car purchase, there are risks involved. With interstate shipping and buying, the risks become more complicated

More below.

Lemon laws don’t apply on interstate auction buys of used cars

The boom of the Internet over the last ten years has led to an explosive growth in online commerce of all types. One of the most popular ways to buy and sell merchandise online is through the eBay auction house, which allows buyers and sellers to deal in all manner of merchandise. A few years ago, eBay expanded their auction listings to include motor vehicles, and the success of eBay motors has been substantial. Sellers can offer descriptions of their vehicles along with photos and terms of sale. The auction house takes a small listing fee as their compensation for the transaction. For thousands of auto buyers, it remains a great and easy way to buy and sell cars.

Buyers should be aware, however, that if anything goes wrong in an online auto sale that there may be little or no recourse for the buyer. All 50 states have lemon laws that cover the sale of new cars and trucks within the states and a few states have laws that offer recourse to people who buy knowingly defective used cars as well. There is no Federal law that protects buyers of cars via interstate online auctions.

A recent case of a Colorado man who bought a car for $69,000 through eBay comes to mind. The car was grossly misdescribed, according to the seller, and the buyer has had little recourse other than to sue the out of state seller in court. This isn’t about eBay, which makes it clear that they are not responsible for the accuracy of auction listings; this is about the myriad laws that vary from state to state that make it nearly impossible for anyone to have a simple solution to a problem such as this. The man is suing the seller, but the laws of the buyer’s state and the seller’s state vary dramatically when it comes to the sale of used cars. It could take months or years before the lawyers in this case are able to establish which state’s laws apply or if any laws apply at all. Where did the sale take place? In the seller’s state? In the buyer’s state? In California, where eBay’s offices are located? The relatively recent development of online auto sales is such that no clear precedents have been set for this sort of problem.

What does this mean for you? It means that while shopping for cars online is a nice convenience, there are additional risks that come with buying a car that way that may create a problem for you should something go wrong with the sale. You should be aware that the lemon law of your state or the seller’s state will not apply to any transaction you may complete with an out of state seller. 

If you want to buy a car online, you might wish to play it safe and only look for cars that are for sale in your immediate area.

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