If you are buying a vehicle from a private seller, you might not know that there are people out there who are looking to scam unsuspecting buyers. So-called sellers may scam buyers in a variety of ways. At Trusted Sale, we protect buyers and sellers from scams but we also like to be upfront with the most common scams, so that you are always on the lookout and staying safe. Here, we will discuss the most common scams targeting vehicle buyers and how you can protect against becoming their next victim.
The most common scams that target buyers of vehicles are occurring online. The FBI recently published a notice about Online Vehicle Sale Fraud, to warn potential buyers of criminals trying to cheat them through offering vehicles for sale online. The online ad includes photos of the vehicle, but many of these vehicles might not actually be in the possession of the so-called seller. There are some warning signs, the FBI says, that an online vehicle listing for sale is too good to be true. They include:
The price of the vehicle seems much lower than it should be.
The seller wants to conduct the sale urgently.
The seller provides explanations for this behavior such as the vehicle belonged to a relative of theirs who has passed away; the seller received the vehicle in a divorce settlement and just wants to get rid of it; or the seller is being deployed by the military or is moving and needs to sell the car quickly.
In these instances, the FBI says, the so-called seller usually tells the buyer that they have partnered with a third-party company and will conduct the transaction through their secure program. Instead, however, the seller instructs the buyer to purchase prepaid gift cards in the amount of the car’s sale price and share those card codes with the seller. Or the seller might also ask the buyer to wire money directly to them, or to pay them through PayPal. The seller tells the buyer to expect the vehicle to be delivered in a few days. After the transaction has gone through, the seller ignores any follow-up texts, emails or calls from the buyer and completely disappears with the money. No car is ever delivered for the buyer.
Avoiding Common Scams
How can you avoid falling prey to this type of scam? The FBI notes a few things you can do to protect yourself:
· Research the vehicle thoroughly, as well as the seller’s name and contact information, on the Internet. If a company is attached to the seller, research that thoroughly as well. Make sure all information provided is legitimate.
Avoid any seller who will not meet you in person
Avoid any seller who will not allow you to physically inspect the vehicle prior to purchasing it
Ask for the vehicle’s VIN, license plate number, and person to whom it is registered.
If you are in doubt or a deal seems too good to be true, it probably is. Back away from the deal.
If you have already been a victim of an online vehicle scam, contact the FBI to file a complaint with their Internet Crime Complaint Center at www.ic3.gov.
Here’s How Trusted Sale Can Help
Trusted Sale verifies the identity of the buyer and the seller in order to ensure that you know who you are dealing with. Trusted Sale also requires that sellers provide their VIN, which will be used to locate a vehicle history report which is provided to the seller. Last, but certainly not least, Trusted Sale manages the transaction and the bill of sale to ensure that the sale goes as it should. The buyer does not ever need to send the money in advance. Instead, the buyer can submit the transaction once they have the keys in hand and, at that point, Trusted Sale will ensure that the money is passed through to the seller.