Cars are expensive and buying a vehicle online can be tricky. Unfortunately, online scams are becoming more common, and sellers are becoming craftier at conning buyers. According to the Better Business Bureau Scam Tracker, there were more than 900 auto-related scams reported in the United States and Canada in 2016. Car sale scams can cost you thousands of dollars, so you should be wary when doing business online. Here are three common online car sale scams to look out for.
Escrow Scam
In this scam, sellers use an unknown escrow service to finish the transaction. The seller sends the buyer a link to wire money to an escrow agent. In return, the escrow agent holds the money until the buyer receives the vehicle. The website may seem secure, but it doesn’t belong to a professional affiliation. It belongs to a third party that the seller set up. Once the buyer pays the money, the seller stops communicating with the buyer and never delivers the vehicle.
To combat this scam, buyers should check the URL thoroughly. Real websites use slash marks to separate parts of the URL, while fake ones typically use periods. They should also thoroughly examine the website. If they notice anything that looks unprofessional, such as misspellings or poor grammar, that might signify it’s a fake website.
Sympathy Scam
Considered one of the older tricks to online selling, this scam preys on the sympathy of the buyer. The thief poses as a seller and offers a sad story about why he or she must sell the vehicle quickly. Some common reasons include dealing with an illness, going through a divorce, or being deployed on active military duty. The seller puts pressure on the buyer to make a decision quickly. If the buyer falls for the scam, he or she can end up with a lemon or leave without a vehicle at all.
Sight-Unseen Scam
Sellers may lure potential buyers in by advertising a desirable car model for sale at a very low price. Sometimes the car is a classic or exotic one listed at a price well below market value. The price may be so low that you wonder if it’s too good to be true, and in some cases, it is. In this scam, sellers may duplicate the listings and use trademarked photos to advertise vehicles.
The seller might claim that the car is outside of the country, so the buyer can’t see the vehicle firsthand. However, the seller claims that he or she can arrange for shipment once the buyer makes a payment. Sometimes these payments are done via wire transfer or bank-to-bank transfer for large sums. Once the seller receives the money, he or she breaks the contract or simply refuses to respond to the buyer. The buyer loses the money.
Listening to your gut can help you navigate some common online car sale scams, and knowing what cons are out there can arm you with knowledge about what to be cautious of. You can also eliminate any risk of falling for a scam and buy your next vehicle from FOX Acura of El Paso.
Money Image by stevendepolo is licensed under CC BY 2.0
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