Auto Dealer Fraud
Many people think that if they purchase a car from a dealer on the internet
that they can avoid being scammed. Wrong!! Used car dealers are responsible
for a significant amount of vehicle fraud on the Internet. It’s
not uncommon for unsuspecting Buyers to proceed with a transaction with
a used car dealer over the Internet only to find out that they get duped
and lose their hard earned cash. Or even worse if the Buyer uses an Auto
Loan check to pay the dealer they may end up making payments on a car
or truck they never received.
A few popular “Auto dealer” scams
(Remember there are hundreds of Auto Dealer scams and the only way to protect yourself is to use Guide Transfer)
“The Consignment Scam” This is one of the easiest scam for a fraudulent dealer to pull on an unsuspecting buyer. Basically, the dealer is representing a car that some poor unsuspecting seller has consigned to the dealer to have the dealer sell it. This can happen often with expensive cars like Porsches, Mercedes, BMW’s and Ferraris. The less than honest dealer sells you the car and probably sells countless other buyers vehicles over a month or two. You get your vehicle and you think you’ve made a fantastic purchase… until you try to get the title. The fraudulent dealer disconnects his phone and you can’t reach them. Trying to register a car without a title is next to impossible in nearly every state. And, when you go back to the original state the vehicle was titled in you are met with a very disgruntled seller who still owns the title to the vehicle. This is when you hire a lawyer and spend an excessive amount of money and time as you try to navigate another states DMV to try to get a title for the vehicle you bought. You may also have to battle a lawsuit from the original owner who is still holding title to the vehicle.
Read the true story of the Guide Transfer founder and CEO HERE.
For sale by owner Fraud
Thousands of unsuspecting and naïve buyers are scammed everyday by “for sale by owner” sellers who misrepresent vehicles on the Internet. And, it’s easy to get scammed because some of these people are very seasoned and very smooth talking on the phone. Additionally, many private party fraudulent sellers create fake supporting documents and pictures to make you believe they are legitimate. There are literally hundreds of “For sale by owner” scams but some of the most popular scams are listed below. Remember the only way to truly protect your vehicle purchase and your financial interest is to use Guide Transfer.
A few popular “For sale by owner” scams
(Remember there are hundreds of scams and the only way to protect yourself is to use Guide Transfer)
‘Show me the money” – Seller tells
Buyer to send a cashiers check or wire transfer money before the seller
will ship the vehicle to the buyer. You can probably figure out what happens
next. The Seller cashes your check or takes your wire transfer from his
bank account, closes the account and you never get the vehicle. Your hard
earned money is gone. And, even worse if you pay him with an auto loan
check from your bank the fraudulent seller takes the money and your left
making payments on a vehicle you never received… that hurts.
“Sure… I have the title” – The Seller represents to you that he owns the vehicle free and clear and has the title to the vehicle. He tells you to send him a cashier’s check or wire transfer. He takes your money. Then a few weeks after you get the vehicle your worst nightmare comes to reality. The seller had a lien on the vehicle and failed to pay it off. This scam is made possible because some states are not title holding states and the owner holds the title to the vehicle not the bank. The bank that is holding the lien then repossesses the vehicle and once again you’re hard earned money is gone. Your left trying to pursue your case with the local authorities costing you time, money and giving you a very small chance that you will ever get your money back.
“The Ghost Vehicle” – The Seller builds your confidence by sending you all the detailed photographs you ever wanted of the car or truck they are selling. This seller may also send you copies of the title and maintenance history records. The only problems is all the records are fake and the pictures are of a car the fraudulent seller doesn’t own. This fraudulent seller may have gotten all the pics and records for the vehicle by posing as a potential buyer for a vehicle on the Internet. He then continues to post the “ghost vehicle” on Internet vehicle sites like E-bay Motors, carsales.com.au and carsguide.com.au and take unsuspecting buyers hard earned money.
Visit our Security Centre for safety tips on how you can protect yourself when buying and selling both online and offline.
Have a suggestion?
If you have an idea about how we can make this a better website or a better service, then we’d love to hear from you.