When you’re looking to purchase a used car, it’s essential to be vigilant and aware of potential scams. Whether you’re a first-time buyer, shopping online, or trying to find a budget-friendly option, knowing the common red flags can help you avoid costly mistakes.
With the rise of online car sales, many buyers are turning to the internet to find their next vehicle. Online car shoppers are particularly vulnerable to scams because they may not have the opportunity to inspect the car in person before making a purchase.
Here are 12 common signs of a scam when buying a car, along with additional tips to keep you safe.
1. Price Too Good to Be True
When a car is priced way below market value, it’s often a sign of a scam. Scammers lure buyers in quickly using low prices. They know the low price will grab your attention and might make you act without thinking. So compare the price with same model or similar cars from different dealerships.
Taking the time to research and compare prices can help you avoid falling for this trick. Checking websites like Kelley Blue Book can give you a good idea of what the car should cost.
2. Seller Pushes for Quick Sale
If the seller is rushing you to make a decision or pushing for a quick sale, be cautious. Scammers often create a sense of urgency to prevent you from conducting proper checks or thinking things through fully. They might tell you that other buyers are lined up or that you need to act fast to get this great deal.
By pressuring you into making a quick decision, they hope you’ll overlook vital red flags. Keep in mind that a genuine seller will give you time to think and will not rush you. Take your time to evaluate the car and the deal thoroughly.
3. Request for a Large Upfront Payment
Be wary if the seller asks for a large upfront payment or a wire transfer before you’ve seen the car. Legitimate sellers usually don’t ask for money before you have had the chance to inspect the vehicle thoroughly.
Scammers might ask for an upfront payment claiming it’s a deposit to secure the vehicle, but once they have your money, they disappear. Insist on seeing the car in person and verifying the deal before handing over any money. Using secure payment methods can also protect you from fraud.
4. No Vehicle Identification Number (VIN)
A missing or hidden VIN is a major red flag. The VIN is essential for checking the car’s history, including accidents, repairs, and ownership history. If the seller avoids giving you the VIN, they might be hiding something crucial about the vehicle’s past.
Make sure that the VIN on the car matches the paperwork provided by the seller. It’s wise to use the VIN to get a detailed history report from a trusted service like Carfax or AutoCheck, which can reveal any hidden issues with the car.
5. Fake Escrow Services
Some scammers use fake escrow services to trick buyers into thinking their money is safe. They set up a fake service that looks legitimate but actually serves their own interests. If the seller insists on using their chosen escrow service, research it thoroughly before agreeing.
As it’s easy to understand, a legitimate escrow service can provide protection, while a fake one can lead to losing both your money and the car.
6. Buying Sight Unseen
Never agree to buy a car without seeing it first. Scammers often use fake photos and descriptions to sell cars that don’t exist. They may provide convincing pictures and stories, but the car isn’t real or isn’t as described.
So you need to inspect the car in person, take it for a test drive, and verify its condition before making any commitments. If meeting in person isn’t possible, consider video calls where the seller can show you the car live. In this way, you can guarantee the car exists and is in the condition described.
7. Seller Refuses Inspection
If the seller refuses to let you inspect the car or take it to a mechanic, walk away. A legitimate seller will allow you to check the car thoroughly before buying. They’ll understand your need to verify the car’s condition and will cooperate with your requests for inspection.
Refusal to let you inspect could mean they are hiding significant issues with the vehicle that could cost you later. It’s recommended to insist on a pre-purchase inspection by a trusted mechanic.
8. Unusual Payment Methods
Also be cautious if the seller asks for payment in gift cards, cryptocurrency, or other unusual methods. These payment methods are hard to trace and offer little protection if something goes wrong.
Stick to traditional payment methods like cash or certified checks that offer some level of security and traceability. To track the payment and protect yourself from fraud, always ensure that any payment method agreed upon provides clear records and verifiability.
9. Fake Ads and Websites
Some scammers create fake ads and websites to trick buyers. Therefore verify the seller’s information and check for reviews or complaints online. Look out for discrepancies in contact details or multiple listings with different names but similar cars.
If the website looks suspicious or has many negative reviews, avoid it completely. Trustworthy websites will have consistent contact information, customer support channels, and genuine customer feedback.
10. Curbstoning
Curbstoning is when a dealer poses as a private seller to avoid regulations. These cars often have hidden issues like mechanical problems or undisclosed accidents. Check the seller’s credentials and the car’s history through reputable sources.
Be cautious of sellers who don’t have clear ownership documents or avoid meeting at their residence or dealership location. It’s better to verify the seller’s identity and ensure they have the legal right to sell the car.
11. Flood-Damaged Cars
Flood-damaged cars can be hard to spot but come with serious issues like electrical problems and rusting parts that aren’t immediately visible. Look for signs of water damage like musty smells, water stains, or rust in unusual places like under seats or in the trunk.
Check the car’s history report for any indication of flood damage or salvage titles that might indicate previous significant damage.
12. Identity Theft
Be cautious if the seller asks for excessive personal information because some scammers try to steal your personal information under the guise of selling you a car. Never share sensitive information like your Social Security number or bank details with a seller until you have verified their legitimacy.
Only provide basic contact information initially and be cautious of any request for more detailed personal data unnecessarily. Protecting your personal information is crucial to avoid identity theft and related issues.
Tips for Avoiding Scams
- Meet in Person: Meet the seller in person in a public place. Bring someone you trust along. Meeting in person allows you to verify the car and the seller.
- Inspect the Car: To reveal hidden issues that might not be apparent at first glance, have the car inspected by a trusted mechanic before buying.
- Check the VIN: Use the VIN to check the car’s history for any issues like accidents or theft. A detailed history report can provide valuable insights into the car’s past.
- Use Trusted Payment Methods: Stick to cash or certified checks. Avoid wire transfers and unusual payment methods. Secure payment methods offer traceability and protection.
- Research the Seller: To help you verify their legitimacy and avoid potential scams, look up the seller’s information and check for reviews or complaints.
- Trust Your Instincts: If something feels off, walk away. There are plenty of other cars available. Trusting your instincts can help you avoid making a costly mistake.