Russia | Automotive

Well, it is not an unwarranted assumption, for there are many who in good faith have paid for online autos and who have then been defrauded one way or another; and they will not only agree, but underscore, that indeed, yes, it is an oxymoron.

Online Auto Purchase — Nightmare Scenario No. 1

The 1968 Ford Mustang that a private seller in Michigan offered for a little more than Sanderson had planned to spend was the precise car he was looking for. Precisely. Color, options, wheels, the lot.

So, his planned spending rose the 20% needed to meet the seller’s price, and he answered, yes, yes, I want to buy this car.

The Michigan seller emailed back, nice to know you, and delighted to do business. Just to make sure you know this is on the up and up, we will snail mail you a Certificate of Inspection, as well as our routing number and bank account; into which you should deposit 50% (plus $1,200 delivery charge) before we’ll ship the car. We trust you to pay us the remaining 50% upon acceptance of the vehicle.

Sanderson was convinced this was all on the level—the seller even had his photograph on the site that sold the car; and once he received the Certificate of Inspection, he wired the 50% plus shipping.

And that was the last he saw of his money, or the car, or the seller.

The Certificate of Inspection turned out to be a forgery. The bank account he had wired the money to, by the time the police inquired, had been closed. No address for the seller, and Sanderson out a considerable amount of money.

Online Auto Purchase — Nightmare Scenario No. 2

Wilson, in his fifties and a prudent man by all accounts, and a lot more business savvy than Sanderson found the very thing he was looking for in Florida. A 1976 Jensen Interceptor series III saloon, hand-built in England. Wilson had been looking for one for years.

Not the color he’d like, but he could always have it repainted.

Not cheap—well, he didn’t expect it to be. Eight emails later, and they had agreed upon a price.

And the seller, bless his heart, a man as cautious as Wilson himself, suggested they use an online escrow service to make sure the deal would go through smoothly, to everyone’s satisfaction. He even recommended a great looking company called reliable-escrow.com to handle the transaction.

Wilson visited the site, and was impressed by the professional approach to the deal it presented. He felt reassured.

Everything was in place. As agreed he deposited 50% of the purchase price (a small fortune) in the escrow account—the balance to be paid upon acceptance. Then he waited, and waited, and waited.

By the time investigators got around to it, reliable-escrow.com no longer existed (it had been registered in Russia), and Wilson had lost his small fortune.

Online Auto Purchase — Nightmare Scenario No. 3

Money exchanges hands. Shipping arrangements are made. The car arrives. Yes, it is the same year, model and color as stated in the ad, but some of the other statements stretched the truth a little. New tires, for one—these had hardly any thread left. The left headlight did not work, neither did the air conditioning, nor the rear seatbelts. This list did go on.

When challenged the seller referred to the contract which did—darn it, there it was—have an as is clause, and the agreement, not the ad, was the legally binding document here.

The buyer ended up spending an additional $2,350 on a $4,000 car to make it drivable, with no recourse to collect.

Good Intentions

Good intentions—admirable things that all too often fall short of proper follow-through—even when present in spades at the outset of an online auto deal are no guarantee that it will go through in the same spirit. Something is usually overlooked, and when the proverbial push comes to shove, the seller just does not want to eat the extra $500, sorry.

And at the other end of the spectrum—when the intention all along is to defraud you—take another look at the first two scenarios (the third may or may not have started out in good faith).

Internet Fraud

Now, if these first two scenarios were rare, isolated occurrences, this article would have no business being written.

However, Non-delivery of items purchased online constitute an impressive 24.9% of all fraud complaints filed last year with IC3—The Internet Crime Complaint Center, a partnership between the FBI and the National White Collar Crime Center (NWC3)—second only to Internet Auction Fraud, which was the most reported at 35.7%.

Vigilance

Therefore, when it comes to buying anything online from a private party—especially something as costly as an automobile—keep the following in mind:

· Be aware that if a problem does occur, it will be more difficult to resolve if the seller is located outside the United States—laws can differ widely country to country;

· Learn as much as possible about the seller, especially if the only information you have is an e-mail address;

· Before you make a payment for any purchase, you should verify the seller’s identity and contact details in case there is a problem with the delivery of the item;

· Ask the seller when delivery can be expected and whether the merchandise is covered by warranty if you need to exchange it;

· Use registered or certified mail to enable tracing; this will eliminate claims that the parcel was sent but must have been “lost in the mail;”

· Check that the seller information matches email, phone number and any bank account and location information;

And here is the most important advice of all:

· If you have any doubts about the identity and integrity the of seller—and when it comes to high-ticket items such as automobiles, even if you have no doubts whatsoever, and if all intentions appear angel-like: use an escrow agent.

An escrow agent or company is an independent third party that holds payment in trust until the buyer receives and accepts the item from the seller. While this service does incur a fee, it protects the buyer because the third party will hold the money until the goods have been received in good condition, inspected, and accepted; and only then releases the funds to the seller.

Internet Escrow

The principle and process of Internet escrow is the same as with buying and selling real estate—where, of course, the escrow company is deemed indispensible due to the amounts involved.

· The buyer or seller opens an account with the online escrow company;

· The prospective buyer of an item sends payment by wire transfer, check or credit card to the escrow company;

· The escrow company verifies that the funds indeed do exist, or that the buyer is who he represents himself to be and is in possession of the credit card, if used;

· Once this checks out, the escrow company asks the seller to ship the merchandise;

· Merchandise is shipped, and seller submits tracking information;

· Once the shipping site shows the merchandise as delivered the escrow company double checks to ensure th
e buyer has the goods in hand;

· The buyer now has an agreed-upon amount of time to either accept the goods or return it to the seller;

· Once accepted by the buyer, the escrow company releases the funds to the seller, less any processing fees and commissions.

Straightforward enough. If, that is, you are dealing with a legitimate online escrow company.

Fighting the Fighter

But the world, as we know, likes to throw us curves; and in this instance the curve comes in the guise of escrow fraud.

Handling, as it does, substantial amounts of money, the bona fide escrow company is often itself a target of fraud—where look-alike phishing sites try to con you into providing them your confidential financial information; and where the escrow company concept itself is flagrantly abused by criminals who set up fraudulent escrow sites where money will only travel one-way: you guessed it, away from you.

In fact, the problem of fake on-line escrow sites is now so severe that some reputable and legitimate escrow sites have simply thrown in the towel.

Buyer Guardian, for example, recently shut its doors due to Internet fraud stealing their business, and posted the following note on their site: “We are sad to report that after careful and lengthy consideration we have made the decision to cease operations at BuyerGuardian.com. This is a very difficult decision, and one that is made primarily due to the rapid growth of online escrow fraud.”

Many of these apparently bona fide escrow companies, established for the sole purpose of enriching the criminal, are set up off-shore—predominantly in Russia or China—where lax cyber crime laws (and sometimes questionable cooperation with U.S. authorities) makes it more difficult to shut the sites down and bring the perpetrators to justice.

Enter: Escrow.com

Actually, Escrow.com entered this fray nearly ten years ago during the dot-com boom and has since shown itself to be the online escrow company to turn to for secure and fraud-less auction and other online sales/purchase transactions—with the credentials and staying power to prove it.

Licensed by the state of California—as well as by the States of Idaho and Arizona, who require separate licenses—Escrow.com is the only on-line escrow company credentialed to serve every state of the Union, and who indeed does so 24/7.

While Escrow.com will handle transactions of any size, it may not make financial sense to turn to them for low cost items since their transaction fee is $25, and their commission is $63 per $1,000 value of the transaction if payment is by credit card and $32.50 per $1,000 for wire transfers.

But, if you value your sleep, Escrow.com would be indispensible for any transaction of $250 on up.

Peace of Mind

Michigan-based telecomclassifiedads.com, which buys and sells expensive telecommunication switching equipment concurs, and would not, according to Mickey Fivenson, complete any online transactions without Escrow.com.

“I use Escrow.com for all my equipment transactions, and without them I would not be in business. It’s as simple as that.

“I deal with buyers and sellers on a daily basis who do not know each other and who live in different parts of the world. Escrow.com is the only way I can complete a transaction between them.

“As a result, after five years of doing business through Escrow.com I have never had anything but satisfied customers.”

Dave Kurko of RPM Auto Wholesale in Pleasant Hill, CA could not agree more:

“Escrow.com provides a safety net for both seller and buyer, delivering certainty in an uncertain world.

“Most people understand the concept of escrow, particularly if they have bought and sold real estate in a jurisdiction that uses an escrow company rather than an attorney to settle a real estate transaction; in fact, we have modeled our transaction on the real estate transaction. Escrow.com has made this approach not only possible but also very effective.

“They are also very customer centric, and thanks to their tech support we have been able to integrate opening an escrow account with them into our own web-hosted application, allowing our CRM software to talk directly to their database over a secure link.

“Really, they’re the only game in town. We’ve searched other companies, and nobody else measures up.”

Escrow.com—Going the Extra Auto Mile

And when it comes to automobile transactions, Escrow.com does go the extra mile (no pun indented).

All buyers and sellers located in the United States using their Vehicle Escrow service can also avail themselves of the following additional Escrow.com auto services:

Title Transfer

Escrow.com can handle everything—including the paperwork—from start to finish for all 50 states.

Inspection Service

Using the latest in handheld computing, and following standardized inspection and auditing procedures, trained personnel electronically record all inspection and audit information right in the field. Reports are then made available on the Escrow.com website and are made downloadable for convenience.

Vehicle Title Insurance

TitleGuard Vehicle Title Insurance provides a vehicle history report and insurance for up to $50,000 against any unreported DMV brands, title defects, and evidence of odometer rollback for as long as the policyholder owns their vehicle.

Vehicle and Motorcycle Transport

Dependable Auto Shippers can have your vehicle delivered anywhere in the world; and JC Motors Motorcycle Transport can have provide the same service for your motorcycle.

Vehicle History

Escrow.com can provide a vehicle history report that includes vehicle description, title check, past problem check, odometer history, and a summarized history.

Escrow.com—The Detective

While Escrow.com understandably is gaining increased recognition as the Internet escrow company to turn to for peace of e-commerce mind, their staff, on a daily basis, also hunt and diligently work to shut down fraudulent impostors, which are encountered daily.

And they spring up like mushrooms, these impostors: there are days that Escrow.com staff discovers as many as ten new such sites.

The good news is that as these sites are tracked down, authorities are alerted and the sites are soon off the air.

eBay Weighs In

To quote the biggest online market of them all, eBay:

Pay safely – beware of fake escrow services when you consider using them to pay for your eBay item.

For eBay transactions, you should use eBay’s only approved Escrow Company: http://www.escrow.com

To avoid being deceived by fraudulent email from a fake escrow service, you should visit the escrow service’s Web site to verify information you received via email.

Make sure you type the entire Web address (for example, http://www.escrow.com) into your Web browser. Don’t let your Web browser auto-complete the Web address for you. It could mistakenly auto-complete a fraudulent Web address.

Escrow.com—The Household Name

More importantly, however, as Escrow.com gains further and further recognition on its way to become a household nam
e, it gets harder and harder for impostors to defraud the public for the excellent reason that they are not Escrow.com—the only name you know you can trust.

Here’s to peace of mind and a good night’s sleep.

And to successful online auto transactions.

Coeur d’Alene, Idaho-based Ulf Wolf writes about cybercrime for Words & Images (ulf@words-images.com)

Retrieved from “http://www.articlesbase.com/automotive-articles/buying-autos-online-safely-678704.html”

(ArticlesBase SC #678704)

Ulf Wolf –
About the Author:

Coeur d’Alene, Idaho-based Ulf Wolf writes about cybercrime for Words & Images (ulf@words-images.com)

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Article Tags:
online escrow, online escrow fraud, online auto purchase, buying autos online, safe online auto transactions

Nissan to Build Plant in Russia

Posted: November 6, 2010 in Russia
Tags: Build, Nissan, Plant, Russia

The Nissan Motor Co., Japan’s second-largest automaker, will start building its $200 million-worth auto plant in St. Petersburg on the 24th of this month. The announcement was made by the automaker after signing a deal with Russia’s Economy Ministry in the previous year.

“A groundbreaking ceremony will be held on June 24,” Nissan said in a statement. At its first Russian plant, the Japanese automaker plans to manufacture 50,000 cars annually by 2009. Nissan decline to specify which models will be produced in the plant. It will be announced by the automaker at a later date.

One of Russia’s Economy Ministry officials earlier divulged it would be the Almera and X-Trail. Nissan chief executive Carlos Ghosn said last year that he envisaged three models being produced at the plant. The Ford Motor Co. already has a plant near St. Petersburg and the Toyota Motor Corp. and the General Motors Corp. are now building plants in the said territory.

Additionally, Japanese car manufacturer Suzuki Motor Corp. and trading house Itochu Corp. are expected to sign a memorandum on building a car plant in St. Petersburg with Russia’s Economy Ministry on the eighth of this month.

Nissan Almera, a small family car that is based on the MS-Platform, was designed to offer accurate handling, good tyre grip and minimal bodyroll. The second generation of the car, introduced in early 2000, features well designed curves and lines. In Nopvember 2006, the car finished production to pave the way for the Tiida. The latter was launched in Europe last month. The British version of the car will be dubbed as the Versa.

The X-Trail, meanwhile, is a compact crossover SUV produced by the Japanese automaker in 2001. It was Nissan’s very first crossover SUV that uses the FF-S platform. The new product line was released at the 2007 Geneva Motor Show in March to rival the Ford Escape, Mazda Tribute, Hyundai Santa Fe, and the Pontiac Aztek. The X-Trail is sold in Africa, Australia, Canada, Europe, India, Japan, Malaysia, Mexico, New Zealand, Philippines, Saudi Arabia, Singapore, South Thailand, and Taiwan. The 2008 Nissan X-Trail will go on sale in Europe this summer.

The X-Trail using the new Nissan/Renault Alliance C-platform is made bigger and longer. It features a Nissan hubcap, active headrests, powerful engines, and various cosmetic and engineering changes. Nissan is currently offering a hydrogen fuel cell model named the X-Trail FCV on lease to businesses.

Separately, Nissan’s good standing in the industry is recognized by other auto dealerships. “Jaguar is a niche, not volume franchise and Lincoln-Mercury used to be a volume franchise, but not so much anymore,” said Bill Steinmetz, the president and partner of the Miller Automobile Corp., also called the Darien Automotive Group, which owns the Jaguar dealership at 1335 Post Road.

“Nissan is more of a buying franchise… all the way up to its luxury vehicles. And with gas prices, Nissan cars are more fuel efficient, and therefore, buyer-friendly,” Steinmetz said. Right now, he is happy to be test driving his new fleet of Nissans. Steinmetz drove the Murano Pathfinder, Altima and Frontier. The Titan and the Versa are next on his list. “I’m driving a different one all the time,” Steinmetz said. “I get a feel for them and see how they do. That’s the fun part of the job.”

It is also fun to offer new product lines. He said that the dealership has already sold quite a few Nissans. “We’ve been doing pretty well with it,” Steinmetz said. “This is a great location for Nissan and the car has a lot of appeal in this market. It has something for everybody.”

Ryan Thomas is a native of Denver, Colorado. He grew up in a family of car afficionados. He now resides in Detroit where he owns a service shop and works part time as a consultant for a local automotive magazine.

Vw 2008 Profit to Hit Us$6.92 Billion, Automaker to Hit India, Russia

Posted: November 4, 2010 in Russia
Tags: 2008, Automaker, billion, India, Profit, Russia, Us$6.92

Chief Executive Martin Winterkorn told the VW shareholders that Volkswagen AG is set to post a pretax profit of at least 5.1 billion euros that is US$6.92 billion in 2008 because of its higher sales of its cars in Asia and Europe, and the United States fuel growth.

He also said the German automaker — famous for its Beetle and durable VW disc — will become more involved in the Indian and Russian markets and has outlined plans to expand production and sales in both countries, which are seeing a growing demand for new cars.

Speaking at the automaker’s annual meeting, Winterkorn did not lay out an earnings goal for this year, which the company said earlier would likely surpass the 4.4 billion euros earned in 2006. He said in the meeting that the Volkswagen group has experienced 12 eventful months. He further explained the collective wage agreement in October and the return to a five-day week represent a big step toward more competitive labor costs, higher capacity utilization and secured jobs.

The company has spent nearly two years cutting some 20,000 jobs from its German workforce because it strives to become more nimble in the face of rising competition from European and Asian rivals. Because of the restructuring, the company’s workforce was reduced to 94,000 employees; a 7 percent decrease from its previous number of employees. Workers at the six plants in western Germany also extended their workweek to from 28.8 hours 35 hours.

Winterkorn said the company, which is establishing production in India and Russia, is working hard in those two countries to build a good image in both markets.

India is one of the fastest growing automotive markets worldwide. Noting that Volkswagen sells Audis in the country and that some models from its Skoda unit are already built in India and Russia, Winterkorn said they are intent on playing a key role in shaping this growth.

Winterkorn further said because of the high tariffs on imported vehicles, however, Volkswagen will only be able to build a satisfactory presence in India if they also manufacture there directly. That is why VW will build a plant near the city of Pune at which it will start producing models including a small car designed to the needs of their customers in the Indian market, beginning in 2009.

Volkswagen expects to start assembling VW and Skoda models at its new plant in Kaluga near Moscow by the second half of this year, but is aiming to eventually have a complete manufacturing presence.

Same in India, Volkswagen’s objective in Russia is to attain a full manufacturing process. Once the body shop, paint shop and assembly line are ready, they will be able to start manufacturing Volkswagen and Skoda models in Russia two years from now.

Winterkorn said Porsche AG’s decision to recently increase its stake in VW was a sign of continued strengthening of the cooperation between the two companies – Porsche and VW. Winterkorn believes that Porsche has faith in Volkswagen’s potential.

Last month, the German luxury automaker raised its holding in Volkswagen to 31 per cent in a move that it said was aimed at protecting VW from a hostile takeover. Followed by the German state of Lower Saxony, which holds nearly 20 per cent, Porsche is now VW’s biggest shareholder.

A German law that limits Volkswagen shareholder voting rights to a maximum of 20 per cent appears likely to be ruled unlawful by European Union judges, but these holdings would leave the automaker protected.

The meeting came a day after the Wolfsburg-based company said it earned 740 million euros, or just over $1 billion, in the January-March period, compared with 327 million euros a year earlier.

Sales rose 5.1 percent to 26.6 billion euros that is $36.1 billion, from 25.3 billion euros.

Big gains in China and Eastern Europe, and a modest gain in the United States, helped offset a dip in sales in Volkswagen’s German home market after the country increased its value-added tax rate in January.

Benjamin Hudson works as a supervisor at one of the top engineering firms in the business district of Louisiana. He is also a freelance journalist and has passion for anything automotive.

Volvo to Build Truck Assembly Facility in Russia

Posted: November 2, 2010 in Russia
Tags: Assembly, Build, Facility, Russia, Truck, Volvo

As the Swedish company Volvo AG celebrates its 80h year in the auto industry, they are continuing their quest to increase their presence in different markets all over the world. Recently, the company announced that they will be building a plant in Russia that will produce Volvo trucks to be sold at the said country.

The company has allocated an investment of SEK 935 million for the said assembly plant. The new facility is planned so that it would meet the increasing demand for trucks in Russia and neighboring countries which were previously a part of the Soviet Union. The announcement also reported that the planned assembly plant will have an annual production capacity of 10,000 Volvo trucks and an additional 5,000 Renault trucks.

The site chosen for the new Russian plant is in the city of Kaluga which is found about 200 kilometers outside the country’s capital. Talks between the company and the authorities in the Russian city are still ongoing. It is expected that the two parties will reach an agreement very soon and that by the year 2009, the assembly plant will be completed.

The new plant to be put up is a sign that the Russian market for trucks is growing. For the past two years, truck sales in the country have experienced a boom, posting almost a hundred percent improvement over the past couple of years. Volvo Trucks’ sale in the country is also experiencing the same success. In fact, the company’s success in the country is the direct cause why they have planned an assembly plant in Russia. Renault Trucks have also enjoyed much success in the country for the past years.

Aside from new trucks, the used truck market in Russia is also growing. Last year, approximately 500 used Volvo trucks were imported in Russia. But a strong economy is now allowing Russians to look for more new trucks and that is where the new assembly plant comes in. Not only in Russia is the demand for new trucks soaring, but the sale and demand for such a vehicle is spreading even in all of Western Europe. The truth is, the market for trucks continues to grow.

Currently, Volvo operates an assembly plant in Russia located in Zelenograd. The said facility has a meager production capacity of 500 trucks every year. Currently, the said plant is working on its maximum capacity producing Volvo trucks complete with Volvo cargo liners. But the demand is increasing that the Zelenograd facility will not be able to cope with it.

Volvo’s operation in the country started in 1937 when it became the first Western truck producer to deliver vehicles at the then Soviet Union. From that time on, Volvo’s trucks have been continually increasing on Russia’s roads. Today, it is estimated that there are about 31,000 Volvo trucks in Russia giving Volvo the biggest share in the Russian truck market.

Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.

Skoda Auto: the Story of the Ugly Duckling

Posted: October 31, 2010 in Russia
Tags: Auto, Duckling, Skoda, Story, Ugly

It is no secret that the Czech Republic’s biggest car maker Skoda Auto has been in the past – a laughing stock in the automotive world. But things are finally turning around for the automaker and right now it has become a profit producing force for its owner Volkswagen.

The Czech Republic’s biggest car maker is also planning to open up new markets in China, India, and Russia. Skoda Auto was bought by Volkswagen in the year 1991 and become one of the forces behind the latter’s global force. And as part of Europe’s largest automaker, Skoda Auto makes use of quality Volkswagen auto parts for its production like the popular Volkswagen spark plug wires.

Skoda Auto was able to record net profits for the last week of 2006 totaling to 11.06 billion koruna or 392 million euros (515 million dollars). It obtained a 40% increase as compared to its earnings in the previous year.

Skoda Auto’s production also increased by 12.6 percent or 556,347 units with successful deliveries of up 11.7 percent resulting to an overall sales increase of 8.7 percent to 203.7 billion koruna. For this year, Europe’s largest automaker Volkswagen owner of Skoda is expecting for it to produce more than 600,000 cars.

According to Marc-Rene Tonn an analyst from German bank MM Warburg and Co., ”Skoda is an extremely profitable part of the Volkswagen Group.” He also stressed that about one in every 10 Volkswagen Group cars are produced in the Czech Republic especially those sold in the year 2005. This was seconded by Stephen Pope, a London-based analyst with financial services group Cantor Fitzgerald Europe, “Volkswagen will rely heavily on Audi and Skoda during this current period.” Since he said that the Europe’s largest automaker is currently struggling with an ageing range of models and it needs new launches to revive it. “The whole new image of Skoda has changed. It is no longer taken as a joke and is now seen as a pure derivative of Volkswagen, but much more reasonably priced.”

Pope also added that this simply shows the remarkable development that Skoda Auto has achieved under the management of Volkswagen for the past 15 years as part of the VW Group. Praises also to Volkswagen for being steadfast in its decision not to scrap the Skoda brand in spite of the not so good image that the brand has in Western Europe (DaimlerChrysler could used some advice from Volkswagen).

The turning of the Skoda into one of Volkswagen’s flagship producer of reasonably priced reliable cars just goes to show the effective management style that Europe’s largest automaker have. And today, Volkswagen is leading Skoda to become its low-cost spearhead into the booming economies of China, India, and Russia without damaging along the way it attempts to target a more prestige market.

Pope also said that “Skoda will be designated as the entry level car with the premium part of the market left for Volkswagen.”

The boss of Skoda Detlef Wittig has announced last week the company’s goal of producing low-cost car for the Asian market, mentioning also that the company plans of opening up markets in India, Russia, and China. The low-cost Fabia and the top-of-the-range Superb are scheduled to be produced for China in partnership with Shanghai Volkswagen. Likewise, launches production of the mid-range Octavia model are set for China this year.

The Czech automaker has already car assembly and production projects in Ukraine, Russia, Kazakhstan, Bosnia, and India. Current models lined up for production includes the mid-range Roomster which will complete the current four model range and the three-door sporty vehicle called the Skoda Joyster which is designed for young buyers.

Growing up with three brothers, Natalie Anderson became exposed early to the world of automobiles. This 29-year-old account manager now dreams of having her very own top-of-the-line vintage car.

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Buying Autos Online — Safely

Nissan to Build Plant in Russia

Vw 2008 Profit to Hit Us$6.92 Billion, Automaker to Hit India, Russia

Volvo to Build Truck Assembly Facility in Russia

Skoda Auto: the Story of the Ugly Duckling