Buying a used car online can be an exciting and cost-effective way to find your next vehicle. However, it’s also a marketplace rife with fraud and scams that can turn your purchase into a nightmare.
Knowledge is power, and with the right information and precautions, you can steer clear of the risks and make your next car-buying experience safe and secure. To that end, keep reading to learn about some of the most common online car scams and how you can safeguard against them.
1. Fake car ads
Beware of fraudulent ads where scammers advertise cars they don’t own at irresistible prices. Found on social media platforms and online marketplaces, these ads typically look convincing, featuring photos of genuine vehicles that match the car’s description. They can even provide contact details to make the ad seem more convincing.
Some online scammers even go so far as to set up fake websites, often using names similar to those of well-known dealership brands to appear more credible. The websites are populated with cheap car deals to trick buyers into thinking they’ve snagged a bargain. As with standalone fake car ads, the photos and information are from real cars for sale elsewhere.
Fraudsters go to great lengths to deceive buyers, often make excuses for why you can’t collect the car in person and promise instead to deliver it once you’ve put down a deposit or paid in full. But once you’ve paid, the delivery never happens, and they become uncontactable.
How to protect yourself:
To avoid falling victim to this type of online auto vehicle fraud, investigate before going ahead with any deal – especially if it seems too good to be true. Request key details about the car, such as the Vehicle Identification Number (VIN). If a private seller refuses to provide
information, let you inspect the vehicle or meet in person, it’s a clear red flag – walk away immediately.
2. Dealers posing as private sellers
Some dishonest dealers disguise themselves as private sellers to try and sidestep their legal responsibilities. By law, a dealer is required to inform you about any faults with a car. In terms of buyer protection, the Consumer Rights Act 2015 covers the buyer if the car develops a serious fault within the first 30 days. You’re legally entitled to return the vehicle and get a full refund. However, these buyers’ rights do not apply to private sellers or cars bought from auction.
If you unknowingly purchase a car from a disguised dealer and encounter issues, the legal protections for private sales differ significantly from those for dealer sales, meaning you might not have the same level of recourse. Falling victim to this form of car buying fraud could leave you stuck with a faulty car and no immediate recourse to financial recompense, facing the stress of repairs or the prospect of a lengthy legal dispute to seek a refund.
How to protect yourself:
One common tactic of unscrupulous dealers is arranging to meet in neutral locations, like supermarket car parks. So, if a seller refuses to let you view the car at their residence, this should raise a red flag. A trick you can use to expose disguised dealers is to say, “I’m calling about the car for sale” when contacting a seller about a car. A genuine private seller is unlikely to ask, “Which one?”, whereas a dealer might.
While getting a vehicle history check can’t reveal whether a seller is actually a dealer, it can give you detailed information on the car’s history that helps you identify inconsistencies.
3. Fake mileage scams
Cars with lower mileages fetch a higher price, so some scammers sell ‘clocked’ cars online for more money than they’re worth. Clocking a car means altering its odometer to display a lower mileage than the vehicle has covered. In the past, this required physical tampering, but it’s possible to clock modern cars with a computer.
The consequences of falling for a fake mileage scam aren’t just about money. Clocking can conceal serious mechanical issues that come with high mileage, which might not become apparent until after you’ve bought the car. Often, the car’s warning lights are switched off in the process, keeping you even more in the dark.
How to protect yourself:
The best way to guard against fake mileage scams online is to check a car’s MOT history or purchase a full vehicle history check.You can also restrict your car hunt to reputable dealers who are unlikely to ruin their reputations to try and earn a bit more cash.
It’s important to note that clocking itself isn’t illegal, but selling a car without declaring its true mileage is against the law. If you think you’ve bought a clocked car, contact Citizen’s Advice for help.
Protect yourself from online car scams with an HPI check®
Car buying fraud comes in many forms, from fake ads to clocked mileage. An HPI Check® is your one-stop defence against all these schemes, backed by more than 85 years of experience and a £30,000 guarantee. By providing key details like the Vehicle Identification Number (VIN), MOT records and service histories, it arms you with the knowledge you need to separate fact from fiction.
Check out our knowledge hub for more expert advice on fighting fraud and other topics.
