What Car? Q&A - Should I use an escrow account?

Q: I am wondering whether to purchase a car from someone now living in Spain.

They had an ad in for a BMW X5 well below market value, and were selling the car because of difficulties and cost of registering a right-hand-drive model in Spain.

They wish to sell it via a third-party shipping agent who will act as escrow agent. I pay them the money, then the car is shipped to UK and I have three days to inspect it - if I'm not happy, I can have my money back.

Am I looking a gift horse in the mouth or will I regret going ahead?
Paul Douglas

A: Genuine escrow services can reduce the risk of fraud by holding your money and only releasing it to the seller once you tell them you're happy with what you've got.

Unfortunately, there are plenty of examples of fraudulent escrow services operating, too.

The Metropolitan Police advises caution when buying a car from abroad, and says you should only get involved with a third-party escrow agent of your choosing.

After all, you wouldn't give money to a stranger to give to another stranger to buy a used car under normal circumstances. See the following web page for more useful advice:
http://www.met.police.uk/fraudalert/vehicle_buying.htm

Auto Trader also has advice for you on the matter. It suggests doing an internet search on the claimed escrow service's company name. A legitimate service will have a number of results listed but a newer, fake escrow site will have few.

Also, be cautious if you log onto a site that does not say 'https://' at the start of the URL and the padlock icon does not appear at the bottom of your screen. This means that the site is not secure.

Avoid escrow services that have a dash in their name or '.org' '.biz', '.cc' '.info' or '.us' endings, and ensure there's an address and landline phone number you can try. Finally get in touch with Companies House or the Financial Services Authority to see if a company is bona fide.

Paul Douglas replies: Thanks very much - very useful info! You're right about handing money to a stranger... When I proposed travelling to Madrid to see the car (only £85), suddenly it was no longer for sale!