Safe or scam? Vehicle Purchase Scams
Purchasing a car online has never been easier, with more and more people turning to the internet to purchase their newest vehicle. You are able to compare prices online and can arrange finance without having to see the vehicle beforehand. It is incredibly important to carry out some critical checks before buying a car, especially if you are not able to view it before the sale is completed.
The price of fraudulent vehicles are usually lower than other vehicles of the same model, year and mileage. The scammer may come up with excuses like they need a ‘quick sale’. They could also suggest that they are selling the car on behalf of someone else, and have priced it to have it taken off their hands. Although it is tempting to pursue the idea of buying a cheap car online, it may be too good to be true.
If you are purchasing a car from a genuine platform such as eBay or Auto Trader, the seller may insist that you begin speaking outside of the platform or to make payment separately from these sites. This is a common tactic used by the scammers and you should be very wary of doing this as you will lose protections offered through the site.
In some cases, the scammers will ask for a deposit to be paid before the purchase of the car. This could seemingly be to secure the vehicle as there is a lot of interest in it. If you are able to pay any deposits using a credit card, and the car turns out to be a scam, you will have the most protection available.
Sometimes you are able to view the car and even take it for a test drive. It may appear that the sale is genuine. It then could transpire that the car was stolen and it will unfortunately be seized by the police, once they locate it. Stolen cars can be difficult to spot as the sellers use sophisticated techniques to disguise the sale as genuine.
Another tactic used by fraudulent sellers is to offer a delivery service included, or for a minimal extra payment. Although this may seem convenient, it is unfortunately very commonly a sign it is a scam. You may even receive delivery information or a reference number from a company that may seem legitimate. This is not real and the car is never delivered.
So, how do you check if it is SAFE or a SCAM?
Here is a summary of the red flags to look out for if you are buying a car online:
🚩The price is too good to be true
🚩The seller wants a ‘quick sale’, often accompanied with a story of financial hardship, divorce, overseas deployment, etc.
🚩You have not seen or test driven the car
🚩 The seller suggests you cannot view the car as they are abroad or the other side of the country
🚩The seller has offered delivery of the vehicle in place of you collecting it
🚩You are being put under pressure to purchase the car or a time limit is placed on the offer
🚩Paperwork is incomplete or mismatched
🚩Lack of vehicle history or service records
🚩The use of a “Third Party” escrow service to hold the payment whilst the car is delivered
🚩Request of payment through unconventional means such as cryptocurrency, bank transfers to multiple accounts, international transfers, etc.
🚩Moving communication off genuine sites
Checks you can do if you are unsure if what you are buying is genuine:
Try to use a secure, well-known, online platform, whilst this doesn’t eliminate the risk it increases the chances of the purchase being legitimate
Carry out a registration check to make sure the details on the advert match details on the registration
You can reverse image search the images to see if they have been taken from somewhere else
If you can, view the vehicle in person you wish to purchase before you make any payments
When you visit the vehicle in person make sure to compare the Vehicle to the one listed and check for any discrepancies
Obtain a comprehensive vehicle history report (DVLA or HPI) to uncover crucial information about the car's past, including ownership, finance, and any reported theft or write-offs.
Confirm Vehicle Identification Number (VIN):
Match the VIN on the registration documents, engine bay, and chassis plate to ensure consistency and identify potential tampering
Paying for the deposit on credit card will give you protection for the whole purchase
Request the car's service and maintenance records. Look for regular servicing, indicating proper care and maintenance
If you are ever unsure whether or not the vehicle you are purchasing is genuine, call the number on the back of your bank card and speak to your bank’s fraud team.
If you have lost money to this type of scam, Refundee can help you get your money back from your bank and you can fill in our fraud refund claim form for a free consultation. Our fees are fair, industry-lowest, and straightforward. We only charge a fee if we’re successful, and there are no hidden or upfront costs. Our fee is between 15% and 25% plus VAT depending on how much money you get back, and we don't charge anything if we are not successful. To see your potential fee, use the fee estimate calculator on our fees page and review the fee banding and example illustrations.
Remember you don’t need to use a company like Refundee, you could work your case yourself for free! If you’d like to get a refund yourself, you can do this by following the ‘Claim Yourself’ guide here: https://www.refundee.com/claim-yourself.
