We have teamed up with the guys at Mycarcheck.com to list some of the more popular cars scams which you should be aware of when buying a used car.
Finance (Asset Fraud):
This is where the vehicle being offered for sale still has outstanding finance. Sometimes buyers purchase the vehicle without caring out a vehicle history check and as a result to this the car gets seized by the finance company because the agreement has been broken.
This activity is widespread and many consumers (often including the seller) don’t realise it is illegal. A seller will admit the car is on finance and will make regular payments towards the remaining amount. Therefore, when some money is taken off the buyer the seller will stop paying and tell the company that the car has been sold and you are liable now for the payments. The finance house could seize ‘your’ vehicle.
The seller admits there is outstanding finance on the vehicle but promises to keep up the payments. Firstly, they DO NOT have the right to offer such terms. Secondly, you have to consider what could go wrong. If they stop paying, the finance house could seize ‘your’ vehicle.
A fraudster will use pressure sales tactics to con buyers into paying a large deposit to secure the vehicle. Sometimes they might mention a potential buyer is looking but if you want the car, pay a large deposit, their main aim will be to take the deposit before you see the car and disappear.
Hire Car Scam:
Fraudsters will offer you a hire car, but take the deposit first before actually handing the car over. Once they have the deposit they will give the hire car back and disappear with your cash.
This scam has been around for quite some time. Fraudsters will offer you a UK vehicle, which is being sold abroad and will ask for the funds to be deposited so the vehicle can be released and shipped over.
Escrow Fraud communication mainly takes place via email
A popular scam where a seller will offer you a part-ex vehicle, which is on finance or has been stolen. To avoid being scammed, always carry out a vehicle history check, to be safe and not lose any money when buying a car.