So you're looking to buy a bike online? Of course everyone wants a good deal, but BEWARE of falling victim to a scam. These days, scams are everywhere, from E-Bay to Cycle Trader. Some telltale signs of the classic scam are:
1. Bike is ridiculously cheap: Compare the blue book or even retail value against what the seller's asking price is. Guaranteed, nobody in their right mind is going to legitimately sell a late model $7k bike to you for $4k. Remember, if it looks too good to be true, it probably is.
2. Bike is overseas: The seller is conveniently located out of the country, where you can't easily see the bike in person. The seller will offer to ship the bike to you, usually out of his own pocket. They will try to make it look more legitimate by saying that the bike is titled and registered in the U.S. so you will have "no problem" obtaining tags. Most common countries include Nigeria, Spain, Italy, Taiwan, UK, Netherlands, but could be ANYWHERE.
3. Wire transfers: The seller wants the payment wired to him via Western Union, or some other such international funds transfer method. Often the seller will "accept" partial payment at first to show "good faith" in the transaction, expecting you will send him the rest of the payment only after you are completely satisfied with the bike (that never will show up).
4. Escrow service: The seller will suggest to use an Escrow service as a third party, to make the deal seem more legitimate. However, many Escrow sites are SCAMS themselves! If the topic of Escrow services comes up, suggest http://www.escrow.com, which is a fully legitimate organization.
5. Fake information: You spot a Cycle Trader ad that looks too good to be true. You notice the seller is located in the US! So you call the phone number listed. Out of service? Common. Fraudulent sellers will rely on e-mail communication so its harder to find out where they are actually located.
6. Shifty seller: Okay so you actually got through to someone, this must be legitimate right? Wrong. If a seller refuses to allow you to come see the bike, citing various excuses as too busy, need to sell immediately, etc. then its most likely a scam.
There are also scams that target the seller as well. If you are looking to sell your bike, the following information is for you:
1. Buyer is overseas: You receive an email (possibly in broken english) about a buyer who is willing to make the purchase sight unseen or just from pictures. However he will offer a cashier's check to cover the cost of the bike and shipping to his country.
2. Buyer offers MORE than your asking price: The buyer may offer a huge cashiers check, money order, or some other form of payment that is way more than your asking price for the bike. You are to cash the check or MO, and wire him back the difference. Usually these forms of payment are FAKE!
3. 3rd party "client" owes buyer money: Along the lines of #2 above, the buyer may try to bring in a 3rd party to "pay" you for your bike. Apparently this 3rd party "client" or something to that effect, owes the buyer a large sum of money. The buyer will instruct the person owing him money to make out a check or MO directly to you, and then you send the difference back. Right.
There are other ways that scams may work but please note this: if you cannot physically touch the bike and hold the paperwork in your hands, or meet the buyer in person, then the safest thing would be to NOT conduct the deal sight unseen. BUYER (and SELLER) BEWARE at all times! Happy hunting!
2001 CBR600F4i