8:37 am, November 7, 2025
The Independent Motor Dealers Association (IMDA) has warned members to be vigilant amid a reported rise in car finance scams.
The IMDA says that dealers need to take action in order to stay protected after a number of retailers fell victim to scammers using AI.
According to the trade body, criminal groups have been contacting retailers, claiming to have customers ready for finance.
They then promise to pay a commission, or even a cut of the car profit, before delivering the vehicle and sending a photo of the handover.
The operation has managed to successfully dupe a number of retailers already but in reality the images are AI generated and the customers and cars are completely fake.
Writing on social media, the IMDA has warned dealers not to trust emails from people claiming to be part of an ‘external team’, which offers leads or finance deals.
They also advised that independent firms should always inspect a car themselves before offering out any finance.
The group, which this week celebrated its eighth birthday, wrote: ‘Over the past few weeks, we’ve seen a sharp rise in fraud involving criminal gangs. These gangs are either working with ingenuine dealers or tricking genuine dealers into thinking they’re passing on legitimate finance leads.
‘Here’s how the scam works: They tell you they’ve got a customer ready for finance.
‘You process the deal, get it paid out, and they promise you the finance commission – maybe even a cut of the car profit.
‘You don’t even need to take the car in – they’ve “got it sorted”.
‘They’ll even deliver the car to the customer and send you a photo of the handover. Sounds slick, right? But it’s all fake – AI-generated images, fake customers, fake cars.’
Addressing the action dealers can take, the IMDA says that anyone approached by a suspected scammer should speak to their finance rep immediately.
They also encouraged retailers not to sell cars without having the original V5 in their possession.
The full list of advice can be found below:
- Don’t trust emails or people turning up claiming to be part of an ‘external team’ offering leads or finance deals
- You must have full legal title to any car you sell on finance – that means you’ve paid for it before your customer signs anything
- Wherever possible, get the car on site so you can inspect it yourself
- Always have the original V5 logbook in your possession
- Know your customer – ideally, meet them at your premises
- If you’re doing distance selling, tell your broker or lender upfront – they’ll carry out extra checks to protect you
- If you’re unsure what counts as a distance sale, speak to your finance rep immediately
- We all need to be smarter and work together. Give your finance providers accurate info from the start.
An IMDA spokesman added: Don’t let scammers into your business. If you think you’ve been approached or something doesn’t feel right –speak up.’
