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May 31st, 2022
While purchasing a vehicle directly from the dealer remains a popular way of swapping out your old car, the secondary and used car market has risen in popularity. The rise of personal sale websites such as eBay, Craigslist, Facebook Marketplace, and more, has allowed people to sell used cars in new ways that help both the seller and the buyer. However, with these new internet platforms comes an unprecedented number of car buying scams.
Buying through a private seller can be an excellent way to get a reliable used car for an affordable price. As a buyer, it is important to be aware of the many car-related scams that occur in the marketplace. If you’re in the market to buy a car soon, it’s important to stay up to date with the car buying scams that are currently being recorded. We will give you all you need to know in less than 5 mins!
About Online Car Buying/Selling
Buying a car through Craigslist, eBay, or other online platforms can be quite beneficial. Many consumers enjoy buying cars online because it helps them save time and streamline a complicated process. Not only can you shop from the convenience of your home, but you can make the timing work for your busy schedule. This helps avoid restrictions based on dealership working hours. It also helps avoid the unnecessary pressure that is often given by car salespeople.
Though these are attractive benefits of buying a car online, there are also some important things to be aware of. Here are some red flags to look for when searching for a car online:
Red Flags that Signal a Car Buying or Selling Scam
Gift Card Payment: One way you can spot a car scam is if your seller insists you pay with a gift card. You should never purchase a car with any form of gift card. Always make sure your form of payment is reliable.
Fraudulent Wire Transfers: If a seller asks if you can pay via a wire transfer, this is a red flag that your seller could be a scammer. If the deal falls south, regaining funds sent via wire transfers is quite difficult. Never give your account credentials out to anyone you are unsure of. Many car buying scams work by asking for your account info and then claiming that the transaction won’t go through.
Fake Escrow Services: When buying a car, a scammer may attempt to trick the buyer into a fake escrow service. This means they will ask you to transfer your payment, capture it, and then you will never receive the car. After they gain funds, they will break the contract.
Buying without Seeing the Car: You may find it strange that a buyer wants to buy a car without ever seeing it. This may signal that this could be a scammer. They may make excuses that they cannot come see the car, like they’re too busy or too far away. If someone wants to buy my car without seeing it, chances are they’re not really interested in the car!
Title Washing: Title washing is a term for erasing a car’s history. For example, this means a car might have been in a car accident or something in the past. When it comes to car selling scams, title washing is quite popular. To avoid this red flag, order a report that gives you a clear picture of the history of the vehicle to know exactly what is going on.
Priced too Low: As the saying goes: if it seems too good to be true, it might be. A price too low that seems unreasonably low might indicate a scam. This is often seen on Craigslist Car Buying Scams and eBay Car Buying Scams. You may see a super expensive or fancy car priced at some crazy low price. These types of car buying scams catch people looking for a good deal.
Overpayment: Another part of common car selling scams is when a buyer sells you a money order or cashier’s check with an amount other than the agreed-upon amount. If they overpay, then this is a major red flag. They may follow up by saying they’ve made a mistake and asking for a refund. But this means the original money order was fraudulent, and the money you sent them will be lost.
Whether you’re buying or selling, pay attention to these common car buying and car buying scams. Paying close attention to the potential red flags mentioned in this overview will help you avoid being a victim of a financial scam. To ensure safety, always be smart when buying and selling and use reputable sources.
How to Avoid Car Buying Scams
When it comes to avoiding car buying scams, it’s important to make sure you know the signs of when someone is trying to take advantage of your good nature and deceive you. Social Catfish gives you the tools to spot scammers in seconds. Use the reverse search toolbar to implement any information you have about the person in question to get answers.
