USED CAR SCAMS YOU NEED TO KNOW
Whether you’re buying or selling, here are the dodgy deals to watch out for
Scammers are running rife in Australia at the moment. Complaints to the Australian Financial Complaints Authority nearly doubled between 2022 and 2023, and unfortunately we may be looking at another bumper year of fraud schemes.
Many of these scammers have had time to re ne their cons, and they are putting in an increasingly believable e ort to eece you of your hard-earned money.
While most scams are generated through texts and emails, the internet remains one of the most dangerous places to get scammed, and classi eds – like the ones you use when buying or selling a car are an obvious target.
Here are some scenarios you should look out for when buying or selling a car online.
BUYING CARS SIGHT UNSEEN
You already know that this is fraught with danger but it’s worth understanding why.
Big purchases require due diligence, and if you’re unprepared to go the extra mile and investigate the car in person you could be in for trouble. After initially arranging an amicable deal the seller could quickly change tack and take the money and run – should they feel like it.
You should only ever pay money for a car that you can verify is registered to the seller and have ensured that it’s what it claims to be. While it’s understandable that sometimes rare cars in remote locations can only be acquired this way, be aware that if you get caught out and end up being scammed, you really have little recourse available.
UNREALISTIC PRICE OR SUSPICIOUSLY LOW PRICE
Low prices are meant to attract attention, and it’s this aspect that scammers aim to exploit when they price a car lower than the rest of the market.
Try and ascertain why the car is priced lower than the rest of the market by checking the kilometres, condition and service history.
If none of those checks are out of the ordinary, and the car is still unrealistically cheap for some reason, it’s probably a
scam in which the car might not even really exist!
MEETING IN A PUBLIC SPACE
Sellers that insist on meeting in a place away from their home could be hiding their address for a reason. It’s a customary given that when buying or selling something privately you can expect to visit the seller’s house. It makes it easier for them, so if they suggest meeting elsewhere you should proceed with caution.
e car might be stolen or the seller mightn’t want you coming back to seek recourse when you realise something is wrong with the car – or the worst case scenario, your personal safety is at risk and they’re trying to rob you.
UNCONVENTIONAL PAYMENT METHODS
e best kind of payment methods for buying a car are bank cheques, bank transfer and cash. If a seller tries to get you to pay for a car some other way – via money order, bitcoin, pre-loaded credit cards or wire transfer, you should immediately be cautious that they’ll take the money and run away with the car.
QUICK SALE
Often private car sellers are keen to move their car on as quickly as possible, but if you suspect a seller is overly rushing the process then you have to ask why.
is might be because the seller wants you to overlook a dodgy aspect of their car or, perhaps, they have to travel overseas and need to sell it in a hurry. Both cases could lead to a scam in which the seller asks for the money upfront and says they’ll organise the delivery of the car later – and yet it never shows up.
OVERPAYMENT SCAM
is is one where the sellers have to be wary. e buyer may send a cheque for more than
the agreed price then request you refund them the di erence. From there, you discover the cheque has bounced and you’ve lost the money you’ve sent. It’s best to always ask for a bank cheque that ensures the money is actually in the account it’s being drawn from.
At the end of the day, the safest way to do business is by checking and rechecking and inspecting the item yourself, prior to arranging a deal.
A car is a big purchase, so be sure to do your homework properly and arrive at a fair and reasonable price and exchange in a safe and smart manner. For more information about how to pay for a car privately visit whichcar.com.au