Car buying scams
Consumers lose nearly £3 million a year
The UK's major car advertisers including Auto Trader, eBay Motors, and Exchange & Mart have joined forces with the Metropolitan Police to form the Vehicle Safe Trading Advisory Group (VSTAG), an industry forum created to combat vehicle related fraud.
Read case histories and advice on the VSTAG website »
Virtual vehicle scams
VSTAG and the Metropolitan Police have recently highlighted the 'virtual vehicle' scam which involves fake shipping websites that promise to handle and look after your money.
Once you respond and express interest in buying the car being advertised which is currently located abroad, you are directed to a fake website for a shipping company that will handle the transfer of funds including shipping costs.
In theory the shipping company will transfer the funds to the vehicle seller when you have taken delivery and confirm that you're happy with the vehicle. In practice, the funds may be transferred but the vehicle never appears.
Advice
- If an offer sounds too good to be true it probably is
- Don't hand over money to someone you don't know for a vehicle you've not seen
- Always get a the vehicle history check for peace of mind.
Vehicle matching scams
Vehicle matching scams work by approaching consumers who are selling their cars and promising falsely to match them with 'definite buyers' - consumers lose nearly £3 million a year according to the Office of Fair Trading (OFT)
Typically someone already advertising a car for sale in a magazine, newspaper or online is cold-called by telephone. The caller's promise is that they already have one or more buyers lined-up who are looking to buy the same make/model – the seller simply has to pay a matcher's fee up-front before the buyer is introduced and the sale completed.
In many cases though there is no buyer, the contract with the vehicle matcher cannot be cancelled, and any money paid is lost.
In 2008, Consumer Direct received more than 1600 complaints about this type of scam from private sellers of second hand cars who had each lost between £80 and £99. The true number of victims is thought to be much larger.
The OFT has been liaising with the police, local authority Trading Standards Services and consumer bodies to crack down on car matching scammers.
The OFT is also working with online and print motoring publications and websites who are members of the Vehicle Safe Trading Advisory Group – including Autotrader, Exchange&Mart, eBay and Pistonheads to put in place clear and prominent warnings about these scams for consumers who put their cars up for sale.
Advice
Consumer Direct advises that car buyers need to be alert, particularly in the current economic climate:
- Stop, think and be sceptical if you are cold called and are asked for money in advance
- Don't give your credit or debit card details to people you don't know
- Stop, think and be sceptical if promises are made which give the impression that:
- there are immediate buyers for your car
- finance has already been arranged for potential buyers
- buyers are willing to pay your asking price or more
- buyers are ready to view your car immediately, or
- you will be offered a refund if the car does not sell
More information on vehicle matching scams »
If you think you have been the victim of a vehicle matching scam, or you suspect a scam, call Consumer Direct for clear, practical consumer advice on 08454 04 05 06.
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18 June 2009