Buying used equipment on internet

I have never bought anything "used" on the web. I was wondering if i could get some advice on purchasing used bikes or "new in box" components (especially from an individual and not a business). Method of payment? paypal? when does the transaction take place; after i receive the merchandise? what if it's damaged?
How are people doing it? what should I be looking for in terms of protecting my money?
Any advice would be greatly appreciated...

I have bought a lot of stuff off ebay and craigslist. It poses some risks but if you are careful you can usually avoid any issues. I have had very few issues, when I did, it was always resolved and I have found some amazing deals. You have to be patient and hunt.

When buying on ebay, as a general rule, I don't buy from anyone that has a rating less than 98.6 feedback, if they have less than 500 transactions, I won't buy from them unless they have 100% feedback. I don't buy from anyone who has a negative feedback in the last 6 months, I never buy an item from someone if they have had negative feeback for the same item that I am buying.

I only use paypal. No exceptions.

Research the retail value of the item for your area.

Determine your true maximum bid, that is the point that, if you paid any more it would be to much or just stupid. Put that true maximum bid in as your max bid, but only bid the minimum. If you loose the auction, who ever won the item paid to much in your opinion.

We sell stuff on ebay and it amazes me how many times, how easily people get in bidding wars and pay way to much for somthing.

If you win, you have to pay. Don't bid untill you have done your home work. After the auctions end is to late.

If you get somthing other than what you bid on, contact the seller and allow them to make it right. If they don't paypal and ebay have protection measures in place.

The sequence of events is, you bid, if you win, you need to pay as soon as possible. The sooner you pay, the sooner they will ship the item. When you get the item you need to check to make sure you got exactly what you expected and that it is in the condition that was described in the auction. Most times it will be in the same or better condition. If you are not happy with it, let the seller know immediately, allow them to address the issue. Probably you will be satisfied, at which point you enjoy your new stuff.

On craigslist, avoid bringing people to your house if you can avoid it. Make sure you have full name, phone number and address when possible. Always pay cash. The less they know about you, the less risk you have.

eBay: http://sporting-goods.listings.ebay....istingItemList
If memory serves me correctly, I believe eBay is the largest "retailer" of bikes in the world. They must be doing something right.
Points to consider:
1) Research and obtain product knowledge before bidding/buying. Like used car salesmen, savvy eBay sellers can describe a $50 Huffy as if it were a $3000 Cervelo. Therefore, know the product.
2) Determine the seller's reputation by looking at the feedback score (# of positive reviews) and positive feedback rating (0-100%).
3) PayPal has become the standard for most purchases on eBay, and has proven itself to be safe for both buyers and sellers. I only use PayPal on Ebay - if the seller doesn't accept it, I don't buy.
4) never pay with Western Union, Money Gram, cashier's check, money order, escrow service, etc.

Craigslist: http://www.craigslist.org/about/cities.html
It's become the online classifieds king.
1) same as 1 above.
2) pick a local craigslist, and go see/purchase the item in person. Take a friend if you feel uncomfortable.
3) same as 4 above.

__________________
"There is alot of blather here that does not float the hooey barge." boudreaux 11/22/2005

thanks for the tips!