Planning on Buying a Car? Here are Scams you Need to be Aware of

Being a victim of a scam especially when buying something like a car can be hurtful and financially damaging. Thousands of people every year fall victim to scammers who employ various ploys to siphon off cash as part of a bigger scheme. While some scams may seem straightforward, even car experts can fall for more sophisticated tactics. To steer clear of those, there are some strategies that car buyers might want to watch out for.

Vehicle history report scam

In this type of scam, sellers are bombarded by messages from fake buyers who try to steal their critical payment information. In a CBC report, an Ottawa woman shared how the fake buyers tried to steal from her by sending multiple messages in response to an ad that she posted. The scammers asked her genuine questions about the car to win her trust and then asked her to share the vehicle history report, which is a routine check for buying used cars. However, these scammers were not satisfied with the shared report and asked the victim to generate reports through specific websites of their choice. They even sent her links to these platforms which generated vehicle history reports at unbelievably discounted prices.

The catch here was that these websites asked for the woman’s credit card information, right off the bat. It was then that the woman realized that it was a scam to steal her payment information. She warned that these websites may appear slick and promise a good deal.

How to be safe?

In the report, Jeff Horncastle, client, and communications officer for the RCMP's Canadian Anti-Fraud Centre, says that a quick Google search about the shared website may not be enough to verify their authenticity. Thus, it is best to stick with partner platforms of the seller like Carfax.

Urgent seller scam

In this scam, criminals post false ads that feature pictures of real cars while selling them at a steep discount. The aim of the discount is cited as the seller's desire to get rid of the vehicle fast. The scammers make excuses like military deployment, divorce, or the car belonging to a loved one who recently died. The scam begins when the seller presses the buyer to make the purchase fast and to make an advance token payment to secure the purchase. Naturally, once the payment is done, the seller disappears with the money.

How to be safe?

To avoid this scam, buyers should exercise caution before making any kind of payment to the sellers. Further, if the price seems too good to be true, it almost always is.

The ‘just needs’ scam

In this scam, the sellers offer a car for sale that’s in perfect working condition but requires some major repairs to get it in top-notch condition. The parts are often cheap and easy to replace. However, after the buyer purchases the vehicle, and goes on to make the needed repair, it is discovered that the problem disclosed was just the tip of the iceberg.

How to be safe?

The “just needs” phrase is a red flag that means that the car doesn’t work and is further from perfect condition than the seller portrays. Buyers should avoid engaging with sellers who promise that the vehicle needs minor repairs and won’t need much to be perfect.