11:51 am, July 18, 2023
Used car buyers are more at risk of being scammed out of their cash because of the cost of living crisis, according to a new report.
The Vehicle Safe Trading Advisory Group (VSTAG) has found used car buyers are laying themselves open to scams and financial fraud in an attempt to save money
Car Dealer Magazine has been reporting on the huge increase of scam car dealers since October.
An influx of fake dealers have appeared online advertising used cars for up to half what they should cost to convince customers into parting with their cash.
Car Dealer has been contacted by hundreds of consumers who have been scammed out of money by criminals who are giving legitimate car dealers a bad name.
VSTAG surveyed more than 2,000 car buyers and found that nearly half (47%) were happy to send money direct from their bank accounts for a car in order to secure a good deal.
VSTAG said: ‘Most fraudulent sellers will try to convince buyers to transfer money before seeing the vehicle.
‘Where possible, using a credit card to make the purchase is the safest option, as it provides consumers with a layer of protection, as the credit-card company may be able to help if there is a dispute or issue with the car.’
More than one in 10 surveyed said that due to growing financial pressures they would only buy a used car they thought was a ‘good deal’ leaving them more open to cons from sellers who advertise hoax cars at cheap prices.
Only 37 per cent of those surveyed said they would carry out a history check on the car too – an advisable practice to avoid buying a lemon.
While some 32 per cent said they were not happy to pay extra to buy from a recognised car dealer, preferring instead to buy the cheapest even if it was from an unknown seller.
Tony Neate, chief executive officer of Get Safe Online, said: ‘Although car buying and selling is as safe as any other purchase, VSTAG is concerned the growing squeeze on household finances may be putting more people at risk of scams.
‘After your home, a car is likely to be the largest single purchase you make, and so we want to remind people of the small, but simple steps that everyone can take to not only minimise risk, but to also put themselves in the strongest position should they be affected by fraud.
‘When buying a vehicle, one piece of advice is fundamental. Make sure you see the vehicle in the metal before parting with payment. Being asked for any sort of money before even seeing that the car exists is a big red flag, so don’t be caught out.’
The advice from VSTAG comes after months of campaigning by Car Dealer and issues similar advice to that already available on our website.
The used car buying advice includes:
- Don’t send money for a car you haven’t seen
- View the car before paying the full amount
- Only pay a deposit for an amount you are willing to lose
- Check the used car price is inline with market value
- Take the car for a test drive
- Always carry out a used car history check
Car Dealer also recommends buying from a used car dealer that has extensive reviews from other buyers online on Google or other websites.
Also do not trust business information, such as company numbers, as legitimate car dealer may have been cloned.
David Callington, HSBC UK’s head of fraud, added: ‘Scammers are devious criminals who use a range of techniques to steal money from people without any concern for the mental or financial wellbeing of their victims.
‘There are a number of simple checks that can be done before buying a vehicle to ensure it actually exists, is roadworthy and doesn’t have outstanding finance attached to it.
‘There are also things that can be done to reduce the risk of being a victim of a scam.
‘Be suspicious if a seller wants you to make a bank transfer or asks you to send money before you have actually seen the vehicle. Remember, if an offer seems too good to be true, it probably is.’
The research also found young people – aged between 18-24 – and Londoners were most likely to be affected by used car buying scams.
One in 10 people (15%) in the capital have been affected by vehicle fraud and 13 per cent of young people surveyed have been victim of a scam.
VSTAG was established in 2006 by Auto Trader and includes members from Gumtree and Motors.co.uk. It works with representatives from law enforcement organisations, consumer advisory bodies, including the Metropolitan Police, the NPCC, Trading Standards, the Motor Ombudsman, and Get Safe Online.
Read the full list of fake used car dealers uncovered by Car Dealer Magazine, our advice on what to do if you’ve been scammed and why car dealers need to promote their legitimate services to help quash the scammers.
