SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.
June 26, 2019
USED CAR SCAM
You can buy practically anything online, including used cars. But before you shell out any hard-earned cash, here’s a warning about scammers trying to sell cars they don’t have or own. Trusting buyers have lost thousands of dollars over the past year alone.
Here’s how a scam works:
Criminals post ads on online auction and sales websites, like eBay Motors, for inexpensive used cars (that they don’t really own). They offer to chat online, share photos, and answer questions. Recently, phony sellers have been sending fake invoices that appear to come from eBay Motors and demanding payment in eBay gift cards. If you call the number on the invoice, the scammer pretends to work for eBay Motors.
So how can you tell if an online car sale is fake?
You may find bad reviews online. Check out the seller by searching online for the person’s name, phone number and email address, plus words like “review,” “complaint” or “scam.”
Phony scam sellers try to rush the sale. Scammers use high-pressure sales tactics to get you to buy without thinking things through. Resist the pressure.
They can’t or won’t meet you in person or let you inspect the car. They want you to pay with gift cards or by wire transfer. If anyone tells you to pay that way, it’s a scam.
The phony sellers may demand more money after the sale for “shipping” or “transportation” costs.
Do Diligent Research before committing to buy:
Does the Vehicle Identification Number (VIN) doesn’t match the VIN for the car you’re interested in? A vehicle history report can help you spot such discrepancies.
Vehicle history:
If you’re buying a used car, the Federal Trade Commission recommends obtaining a vehicle history report before you buy. Vehicle history reports can tell you a lot about a used car. A report might include ownership history, whether the car was in any accidents, its repair records, and whether it ever was declared as salvage.
How can I learn a vehicle’s history?
Visit the National Motor Vehicle Title Information System (NMVTIS) website, vehiclehistory.gov, to get a vehicle history report with title, insurance loss, and salvage information. This site lists NMVTIS-approved providers of vehicle history reports. Choose one, enter the VIN (vehicle identification number, which is listed on the front of the Buyers Guide), and pay the provider’s fee to learn the car’s history.
NMVTIS-approved providers offer vehicle history reports to consumers, car dealerships, and financial institutions. But not all vehicle history reports are available through the NMVTIS website.
A vehicle history report is not a substitute for an independent visual vehicle inspection. Before you buy a vehicle, an independent inspection by a qualified person is needed to ensure it does not have hidden damage.
Has the car been recalled?
The National Highway Traffic Safety Administration website, safercar.gov, has free listings of vehicles subject to open safety recalls. That means the manufacturer has recalled the vehicle but repairs are not yet done. Enter the vehicle’s VIN to find out if a vehicle is subject to an open recall. You also can call the National Highway Traffic Safety Administration’s Vehicle Safety Hotline at 1-888-327-4236.
Has the car been declared as salvage?
The National Insurance Crime Bureau’s website lets you enter a VIN and find out if the vehicle has been damaged by flood, was stolen but unrecovered, or otherwise declared as salvage.
Consumer scam alerts are free by e-mail from the FTC at ftc.gov/subscribe. If you spot a scam, report it
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