It is usually a prudent option to sell your vehicle to car buying companies that acquire your vehicle rather than to private individuals. We've seen countless folks plundered by scammers of all kinds in the last decades. Today we will share some car scams with people who were affected by the con artists using their confident scams on many individuals. Some of them are below for your awareness to be alert.
Scammers contact a private seller who promotes his car on the internet, masquerading as a serious buyer who lives abroad. They want further images and information about the car, and they want to make sure there are no pending charges. The problem arises when the 'buyer' informs the seller that because it is an international transfer, your bank requires a commission. The scammers offer to pay half, but urge the seller to put the balance into their checking account. If the vendor accepts, their money is gone.
A potential customer wants a car. He and the seller agree on a price and a date to sign the sale contract and make the payment, which he wishes to make through transfer. Take an empty envelope to the bank teller, but mark in the terminal that you have entered the stipulated amount as payment. When you meet the seller, you tell them you paid and they may check it -via your bank's app or an ATM-. The vendor has the money, so he signs the contract and delivers the car. When the seller discovers that the transfer is invalid -when the bank checks the envelope-, he will be unable to recover the money. It is used to complain.
Scammers advertise vehicles at a discount. When someone wants to buy one of their automobiles, they say they reside abroad but can ship it to us. Then they ask the buyer to make a deposit through a transfer business, in the name of a fictional receiver, so that the seller may see the transfer has been done but cannot access it. If the interested party approves and transfers the funds, the scammers withdraw the funds using fake recipient documentation.
Pawning the car
It is possible to borrow between 50% and 70% of the vehicle's value from several companies, with a buyback price up to 20% higher. They even charge you for parking if they keep your car or if they let you keep it.
Worst of all, this can be used to get autos for up to 50% less than their true market value. How? Some individuals go to sales, firms, or lenders who advance them up to 60% of what they believe a vehicle is worth, with the promise that once sold, they will give you the remainder of the money they were able to collect.
After a period, they inform the owner that the automobile can only be sold for considerably less. He refuses to sell it because he wants more money. The lender then says you can have your car back if you pay back the money. The issue? Many individuals cannot return it - these businesses charge approximately 24% APR!! - so the lender offers you extra money... to sell you the car. A automobile he's already 'placed' for a considerably higher price than he pays the original owner.
Scammers sell automobiles online for up to 40% below market value to attract purchasers. When someone approaches them, they say the automobile is in another nation, they are foreigners, but they know a "very safe" firm that could ship it to Spain. According to them, the company asks for up to 30% of the car's MSRP. If the buyer pays the deposit via a Western Union-type transfer service, the scammers will take the money and leave him without the automobile.
Scammers approach people selling their cars online and ask for images and information. So they create bogus sales adverts for that vehicle on several websites... lowering the price and utilising the real seller's name. A small deposit of 100-200 euros is requested from all interested buyers who contact or email them, claiming "there are many interested parties." After all interested parties make the deposit, they liquidate it and vanish... Claims and legal actions lie on the first seller, who is not at fault and must report identity theft to the police to avoid any claim.
A private seller lists his car on several classified websites. An putative buyer contacts him via email, expresses interest in the automobile, and promises to provide a signal via bank check. As soon as the seller receives the check, he sees it is larger than agreed, and asks the buyer to deposit the difference in an account. After the seller transfers the monies, he verifies that the check he received is void!
HOW TO PREVENT AUTOMOBILE PURCHASE SCAMS
Never purchase a car without seeing it. Insist on testing it before buying it, and make sure all paperwork is in order, such as the registration certificate being issued in the name of the seller.
Prepay nothing... not even a reservation fee. Consistently avoid providing personal data and/or bank account information over insecure channels or to people you do not trust.
Avoid extreme low prices: Scammers utilise it to lure victims, with'sales' sometimes up to 40% off the market price.
Never believe advertising that are badly written or that appear pre-written. Their 'deals' appear on dozens of websites across the globe using automatic translation software. You should not trust those that react with pre-written messages or ignore your questions. Always be suspicious of buyers/sellers who, after multiple discussions, only offer you an email as a mode of communication: it could be a fake.
Compare the data: Be aware of cars that claim to be from abroad. When buying one, ask the vendor for a transport company's name and contact information. Remember that documents sent over email can readily be falsified, so don't trust them. It wants to see the original paperwork.