Car Buying Scams and How to Avoid Them

Car buying is a big business and lot of scams happen in this area. Though car buying scams are most prominent in case of used car purchases, the scams-as you will find in any automotive news plague the first hand car business also. The interesting point is however that most scams happen because of fraudulent buyers. However sellers also cheat.[more] Therefore it is essential for both the buyers and sellers to be familiar with some of the most common car buying scams and the ways to detect and prevent that from happening to them.

You can almost find everything on sale online nowadays, so one will come across so many sites over the internet dedicated to selling cars. The best or worst part of the internet is the anonymity of people. Many bogus buyers take advantage of this situation and cheat the sellers. One of the most common types of used car buying scams on the internet is referred in Automotive News bulletins as….

Certified Check Scam. This is how it works. A buyer on the internet indicates that he wants to buy a specified car. He then writes a cashier’s cheque as promised. The buyer however, at the last moment cites some important reasons like changing the decor of the car for example and pays some bigger amount by cheque. The buyer then requests the seller to send him back the money he had already sent and cash the new cheque instead. The innocent seller generally falls into this trap and does as has been requested by the buyer. However later on, the seller finds out that the cheque later issued is of no worth.

The best way to avoid from being a victim of this car buying scam is to apply sense. You should, on receipt of the cheque, verify about its authenticity by making a call to the issuing bank. Once certain about its authenticity and having received the amount; only then send the car to the buyer. One more thing, try to put yourself into the buyer’s shoes and think whether or not you would have voluntarily given more amounts to the seller.

CarSnapsAutomotive news lists Bogus Escrow Services as another common type of scam. Most of the sellers on the net use escrow services. The Escrow service agencies hold the money till both the parties are satisfied. However, beware of fake agencies. They keep the money and yes forever.

It is therefore advisable to first verify about an Escrow Service Agency with SOS4Auction.com.

Internet auction can sometimes result in scam. If you think reputed auction sites like Ebay etc are safe, you are wrong. Many false buyers use even these sites to cheat people.

Therefore, research into the buying history of a particular person. Besides, before the shipment of the vehicle make sure that you have in your account the money.

The buyers also get cheated in many ways.

Often, the shipment does not carry the exact model you ordered.

It may even turn out that the car is damaged and the seller claims it was damaged during the shipment and not his fault.

The internal car parts may be of poor quality than that promised.

Some fraudulent sellers, even after getting the money, may not deliver the car.

It is therefore necessary to check seller’s credentials and regularly follow automotive news to stay constantly updated about new scams.

If you believe that you have been a victim of any such scam or if you would like to know more about common Automotive scams then check CarSnaps Automotive news regularly. If you need help or personal advice you can Contact Us or you can ask for help on our automotive forum.