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June 16, 2000/13 Sivan I 5760, Vol. 52, No.41
Buying vehicles online has its drawbacksNorth American Precis SyndicateAs people find it increasingly easy and accessible to purchase almost anything online, they are also forgoing visits to stores more and more, thereby cutting out their need for salespeople.Not only do consumers buy food, clothing, household goods and luxury items with the help of the Internet, but they also use their fingertips to purchase automobiles. Forty percent of consumers who purchase cars and trucks do so through the Internet, according to North American Precis Syndicate. In some instances, they simply use the Internet to conduct research on different automobiles instead of relying solely on salespeople for information. In addition, consumers are financing their vehicles over the Internet. However, Larry Prokop, fleet director at Camelback VW/Saab/Subaru, suggests that buyers use caution when using the Internet to plan their automobile purchases. "The Internet (misleads) the (auto) customer because it (offers) a lot of information which is erroneous," says Prokop. "I'm not knocking the Internet - I use it daily - but I would advise strongly against using it to buy a car." Nonetheless, here are some frequently asked questions about Internet auto-financing and their answers: How do I compare and calculate monthly payments when I am auto-finance shopping? This kind of information is just a mouse click away. One service, BanxQuote, allows you to compare interest rates nationwide, so you know if you're getting a good deal. But, according to Prokop, "The dealer can always sell for less than the (Internet equivalent) because the Internet dot-com is required by law to buy from the dealer. Dot-coms are in it for a profit." Prokop says that when you calculate a lease over the Internet, you don't necessarily factor in the license fees, documentary fees, tax, security deposits and acquisition fees. If I finance a used car, how do I find out about its history and how much it is worth? CarFax's "Lemon Check" (www.giggo.com) allows you to enter the car's vehicle identification number. Then it tells you how many owners the vehicle has had. It also relates whether the vehicle has ever been totaled, sold for salvage or if there are any recalls on the car. But according to Prokop, who has visited CarFax's Web site, "the only information it gives you is whether the car has a salvage title or not. It doesn't know whether the car has been in an accident. Where could they get this information from? I have tried plugging in the VIN numbers of my own cars and the information (gleaned from the site) was either (incomplete) or totally incorrect." How do I know a financing site is secure? Look for a site that uses the international SSL security standard, which "encrypts" personal information so no one on the Internet can understand it. Also, find a site that tells you what they do with your information once they have it on file. According to David Goodwin, a computer consultant in New York, sending your credit-card details over the Internet is not always safe. "Although encryption does deter (credit-card thieves), you really have no guarantee that the Web site to which you are sending your personal information is reputable." Another problem, he adds, is the possibility that "hackers can break into Web sites and steal all the credit-card details from the site's database." Can I visit one site to get everything I need? Most sites on the Internet will offer some, but not all of the services you need. "But a Web site does not provide any aftercare," asserts Prokop. "What if there are delivery complications or the car arrives and has problems? Who will take care of it? Not the Web site," he explains. Prokop says that a common misconception is that people should avoid car dealers. "The dealer will be able to sell you the car for less, every time, although sometimes this will not be (immediately apparent)," he says. "The industry gets a bad rap because of the erroneous information that's put out there and the expectations of the customer." North American Precis Syndicate. Jewish News Editorial Assistant Elizabeth Dieterle contributed to this report. |
