Just bought a car on Facebook Marketplace? Here is what you need to know.

There are two things you might have noticed if you’re looking for a car: a high-quality used market and buyers and sellers flooding Facebook Marketplace to find deals. Studies show that 78% of people use social media when making a car purchase; with 53% of buyers making their choice of new or new-to-them car entirely online. Avoiding scams while shopping for your car and filing paperwork immediately after purchasing it can make your Facebook Marketplace experience smooth and stress-free.

With a shortage of computer chips and a lack of repossessions, and fleet cars limiting supply, the used car market is hotter than some have ever seen. A lower inventory means that people will seek out other places to purchase a used vehicle than the dealership. More than half of shoppers discover vehicles online, with 30% using their smartphones or tablets to search. Facebook Marketplace allows you to find cars in both new and used condition from dealers and private sellers.

Facebook Marketplace – Buy a car

Although you cannot purchase a car through Facebook Marketplace, it is possible to search for one and connect with a seller in order to buy one. This will depend on who the seller is and whether the seller has an existing loan that must be repaid before the seller can transfer the title to the new owner.

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What is Facebook Marketplace?

Facebook Marketplace was launched in 2016 as a competitor to Craigslist. Marketplace gained popularity thanks to its integration with the existing Facebook platform. This is because Facebook has the trust factor Craigslist does not have. In 2018, Facebook began allowing car dealerships to advertise new and used cars on Marketplace. Dealerships and private sellers might have an advantage over other online search engines because Facebook Marketplace is one of the most used places to search for used cars in the country.

Facebook Marketplace allows both private sellers and dealerships to advertise new and used cars for sale. Many people search on Facebook Marketplace for the best deal and lowest price for a car. Facebook Marketplace has simple rules for selling cars. Make sure your description and photos are consistent with the Community Standards. Sellers and buyers should be respectful and authentic when buying and selling.

Smart shopping

When shopping for a used car online, be smart in your approach. Buy locally only and check the profile or business page of the seller to see if there are any warning signs, such as a lack of friends or a younger profile. Look for recommendations and reviews outside of Facebook to ensure that the dealer’s name matches that on Facebook.

Pre-existing damage is not covered under auto insurance. While pre-existing damage can be minor like scratches or dents, it can also signal an accident that the seller might not be forthcoming about. To verify that the car has not been in an accident, it might be worth asking the seller for the VIN.

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Beware of scams

Scammers are most likely to be out there looking for quick cash in a highly competitive used car market. It’s possible for scammers to offer cars at a bargain price. Listing used cars for low prices almost guarantees a lot of views on the ad, increasing the likelihood someone may fall for it. Dealerships are sometimes brought into the scams, with scammers posing as dealers and taking unsuspecting buyers’ money.

Facebook Marketplace is a safe place to avoid scams when buying cars

  • Gift cards are not the best way to buy a car.
  • To verify that the vehicle matches the description and photos on the ad, ask for the VIN
  • If it is a dealer ad, verify that the information matches.
  • Don’t send money without seeing the car in person

Keep safe

Even with a great deal, buying car can be costly. Unknown persons may pose safety risks when purchasing a car, especially if they meet face-to-face to complete the transaction. Facebook Marketplace does not offer purchase protection on vehicles, so it is important to be diligent as a buyer and seller:

  • Bring a friend or family member along
  • You should meet in a public place that is well-lit, with others around. Consider meeting at a police station.
  • Verify that the VIN, description, and photos correspond to the car
  • You might consider completing the monetary transaction at a DMV or bank.
  • Before you hand over money, ensure that all documentation (bill of sale, lien release, title, etc.) is correct. Before you hand over any money, ensure that all documentation (title, lien release and bill of sale) is correct
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I purchased my car. What now?

You must immediately drive your car after you have purchased it. These are the steps you need to follow to transfer your car to you from the seller:

  • Notifying your insurance company about the sale
  • Insuring the car according to state minimum guidelines
  • You can change the title at DMV from the previous owner to you
  • If required, take it to your state for inspection

Liability and insurance

The process of transferring the title of the car from the previous owner to you may vary by state, but you will have to go to the DMV to complete the transaction. There may be additional information that you will need to provide.

  • A bill of sale
  • Verification form for VIN and Odometer
  • Transfer of title with owner and signatures by the buyer and seller
  • Lien release
  • Transfer of title and ownership: Fees

You could be held responsible for the actions of the seller if you fail to do so. You should immediately remove any car you have sold from your policy. Some states require that the tags be returned before the vehicle can be removed. Others do not. Failure to comply with this deadline could lead to fines, penalties, and even a suspension of your license or registration.

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Before you start driving the car, you should purchase a car insurance policy for it. Shopping around for car insurance quotes can help you compare rates and coverages to find the best deal. The rate you pay for car insurance depends on several factors, including your age and driving record, and may be higher or lower than the average annual cost of full coverage car insurance, which is $1,674 per year.

Pre-existing damage should be documented

It is crucial to record any pre-existing damage to your car and send it to your insurance company. You will have the best chance of your future claims being covered. Your insurance company will not cover any pre-existing damage.

The bottom line

Facebook Marketplace is a great place to sell a car, or find a deal on it. Sellers need to be open about any pre-existing damage and provide a fair price. Buyers need to be cautious of frauds and obtain a VIN report. This will allow you to verify the car’s history. To avoid possible fines, penalties, or suspension of your license or vehicle, verify the DMV and insurance requirements in your state.