4:59 pm, October 14, 2011
HPI is warning dealers buying used cars to be on their guard for the latest scam in Scotland.
The firm has seen an increase in sellers based in Scotland offering non-existent vehicles online for sale and using suspect documentation to dupe unsuspecting buyers.
The latest rip-off is being operated from Thurso, in the far north of Scotland. A car is advertised for sale, but as it is so far away from the buyer, the seller offers to transport it to them at their own expense.
The car is a bargain, in most cases well under half the normal asking price. All the buyer needs to do is pay for the car using an elaborate method, often involving Western Union Money Transfer. No genuine seller would do this, effectively selling their vehicle at a loss.
This type of scam has been around for years, believes HPI. The seller is often overseas, but could be in the UK – as in the recent cases HPI has seen – but is always hundreds of miles away from the buyer.
The story is that the seller needs to sell the car quickly, which accounts for the low price, but the buyer can’t view the car or the documents as they are already in transit.
The buyer is then asked to transfer the money to allow the seller to ship it. But, once the money is transferred, the car never appears, because there is no car and the seller is long gone with the cash.
‘These scams lure unsuspecting buyers by offering cars at bargain prices,’ said Nicola Johnson, consumer services manager for HPI. ‘The buyer never sees the vehicle or the documents before they part with their cash. If a seller is asking for payment before the buyer has had a chance to view the vehicle, it should be the first sign for people to back out of the deal. Otherwise they could end up paying thousands for a car that doesn’t exist.
“We urge buyers to buy with their head, not with their heart. The first step should be to conduct their own HPI Check, which is the best way to ensure the vehicle is legitimate, confirming whether it has been stolen, written-off or is on outstanding finance. If the buyer is at all unsure about the deal, they should call HPI for further advice. It’s an old piece of advice, but if a deal seems too good to be true, it probably is.’
HPI has put together five crucial steps for buyers and dealers to keep in mind.
1. Location: If you’re buying privately, make sure you view it at the registered keeper’s address (as shown on the V5/logbook).
2. Provenance: Always check the history of the car. One vital check the buyer can do is to find all the VIN/chassis numbers on the vehicle to make sure they match each other, and then use the HPI Check to ensure they tally with the registration number of the vehicle.
3. Documents: Check the vehicle’s V5/logbook. Stolen V5 documents are currently being used to accompany cloned vehicles but the HPI Check includes a unique stolen V5 document check as standard. This will confirm whether or not the document is one that the DVLA have recorded as stolen. The vehicle should also be accompanied by a service history and MOT certificates if the vehicle is more than three years old – make sure you see these too.
4. Price: Know the car’s market value. No genuine seller will want to lose money on their sale. If you are paying more than 30 per cent below the retail market value, then be on your guard.
5. Payment: Never pay large sums in cash. Some fraudsters will take a bankers draft as part payment, making off with the cash. Most crooks would rather walk away from a sale than take payment via the banking system, which can be traced back to them.
