Planet Antares Scam Solutions | Avoid Used Car Scams
A new scam targets both automobile sellers and buyers. The scammer poses as a potential buyer of a used car. The scammer is usually well-dressed and indicates that s/he has recently been in an accident that resulted in the total loss of his/her vehicle. The scammer wants to buy a car advertised in a forum like Craigslist or AutoTrader, and has a check from the insurance company to pay for the car for sale.
The check is phony, but by the time the seller finds out, the car has already moved on to the second part of the scam. The scammer, now in possession of the stolen vehicle, offers to sell it to a buyer-victim at “below-market” value, as long as the buyer is willing to pay cash. By the time the cash buyer discovers that the vehicle has been reported stolen, the seller has disappeared, leaving the original seller to recover the car, and the cash-buyer out of luck.
To avoid being taken in this scam, here are a few tips:
Don’t accept third-party payments for a vehicle. It may take up to a week or more to determine that a third-party check (such as one from an insurance company) is or isn’t legitimate. If the buyer presses, ask the buyer to cash the check and pay with cash. If the buyer refuses, walk away from the deal.
If you are willing to accept a check from the buyer, meet the buyer at his/her financial institution to verify that the check for payment is legitimate. If the buyer doesn’t want to meet you at the bank to conduct the financial portion of the transaction, walk away.
Ask to see the buyer’s identification. The buyer will need to produce ID in order to complete the title transfer. If the buyer doesn’t want to identify himself, walk away.
If you’re buying a used car, be wary of vehicles that are offered well below market value. Before you agree to meet a seller, look up the Kelley Blue Book value of the vehicle you’re looking to buy. If the seller is offering the car for substantially less, ask why the price is so low. If the buyer states a need for quick cash, walk away.
Write down the vehicle identification number (VIN) on the car. It’s normally displayed under the windshield on the driver’s side of the car. Also ask to see the car’s current registration. If the seller won’t provide the ownership paperwork or the VIN on the car doesn’t match the information on the registration, walk away from the deal.
If the seller does show you the registration papers, don’t make a deal on the spot. Instead, take the VIN to the local police department and ask them to verify the vehicle’s registration. If the car is stolen, be prepared to provide as much information as possible about the seller and how you encountered him or her.
Don’t inspect a car for sale by yourself, and don’t carry a large amount of cash with you to inspect a car for sale. If the seller is legitimate, meet in a public place to conduct the sales transaction.
Related: Read more about car financing scams.
