Online car shopping offers the convenience of browsing a wide selection from home, but it’s also a playground for scammers. Buyers eager for a deal may find themselves vulnerable to common scams, each designed to steal money, personal information, or both.
Here’s a rundown of the most frequent scams and tips to avoid them, ensuring your next car purchase is safe and successful.
1. Curbstoning: The Deceptive Dealer Curbstoning is when a dealer pretends to be a private seller to evade dealer regulations. These vehicles often have issues with salvage titles or major repairs the dealer wants to hide. Meeting in public places, like parking lots, also makes these sales harder to trace
To avoid: Request to meet at a reputable location and always verify the car’s Vehicle Identification Number (VIN).
2. Payment in Gift Cards: Red Flag Alert If a seller asks for payment in gift cards, it’s almost guaranteed to be a scam. Gift cards are untraceable, and once sent, they’re gone.
To avoid: Use only trackable payment methods like certified checks or reliable third-party services.
3. Fake Escrows and Phony Accounts An escrow is typically used to ensure both parties’ safety, but some scammers set up fake escrow sites to steal your money. They’ll direct you to deposit funds, then disappear once they’ve pocketed the cash.
To avoid: Independently verify any escrow service and stick to trusted names.
4. Phony Trade and Title-Washing Scams Some fraudsters offer to trade their high-value vehicle for yours but instead deliver a stolen or heavily damaged car. Others manipulate car titles to hide past damage or salvage status, known as title-washing.
To avoid: Always request a vehicle history report and don’t agree to trades unless the vehicle has been thoroughly inspected and verified.
5. Wire Transfers: The Easy Target Wire transfer scams involve the seller asking for a direct transfer, which is hard to trace and impossible to recover.
To avoid: Walk away if wire transfer is the only payment option, and use traceable payment methods instead.
6. Fake Ads and Identity Theft Some sellers post ads for cars they don’t own or use phishing websites to capture personal information.
To avoid: Always see the car in person, verify the VIN, and avoid giving out personal information, especially Social Security numbers or banking info.
What to Do if You’ve Been Scammed If you suspect fraud, file complaints with the FTC, the National Consumer League’s fraud center, and your state attorney general. Reporting incidents quickly is crucial in protecting yourself and others.
With awareness and caution, you can enjoy the perks of online car shopping without the risk. Remember: If a deal sounds too good to be true, it probably is. Protect yourself, and shop smart!
Elizabeth Puckett