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8 scams used in car sales: Learn about them and avoid them.
Learn how to identify the main scams used in car sales, such as the use of stolen cars and more! Check out the information below and avoid them!
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Learn about the main scams used in car sales.
Have you ever come across car offers that seem too good to be true? Well, if you've ever encountered an opportunity of this nature, it was certainly just another one of the many scams perpetrated in car sales.
Advertisements for vehicle sales at low prices, coupled with the word "unmissable" in the title, tend to be real traps!
Unfortunately, this type of tactic is nothing new, and this type of scam is claiming more and more victims.
With the Covid-19 pandemic, the number of crimes involving vehicles has increased significantly in Brazil.
The worst part of all this is that identifying these scams is not a simple task.
Today, criminals are very convincing and negotiation situations seem real.
So, once again with the goal of helping you, our experts are bringing you the main scams used in vehicle sales so that you can learn about them and avoid each one.
Are you looking to buy a new car and don't want to be ripped off or have any headaches?
So, today's reading is absolutely essential.
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How to avoid falling victim to car sales scams
As mentioned, scams involving car sales are becoming increasingly frequent.
The good news is that there are some functional and practical ways to avoid being caught by them.
The main actions you should take to avoid falling victim to car sales scams are:
- Be wary of offers that seem too good to be true;
- Investigate the seller's history before closing the deal;
- Always ask a trusted mechanic for their opinion if the vehicle is used;
- Try to do business only with companies known for their honesty in the market;
- Be wary of suspicious behavior, such as rushing to finish the operation;
- Be patient when shopping, avoiding impulsive actions.
By putting all these actions into practice, the chances of you falling victim to a scam involving the sale of cars decrease GREATLY.
The 8 main scams used in car sales
After receiving news that scams in vehicle sales have increased since the pandemic began, and learning ways to avoid being deceived, we will now show you the main tricks that criminals have been using to deceive people.
Shall we begin?
8. Signal scam
One of the most classic scams used in car sales is the "deposit scam."
It is very common for advertisers to promote vehicles with low market value in order to attract "deceived" buyers.
When one of them shows genuine interest in buying the vehicle and arranges a meeting to inspect the car in person, the scammer asks for a deposit.
The reason given is that another interested party has come forward and wants to buy the vehicle in question.
At that moment, he provides a third party's account number and asks for a deposit to be made.
This is the most common scam involving the buying and selling of vehicles, and it happens very frequently.
To avoid this, simply don't make the deposit and only pay after having the vehicle inspected by your trusted mechanic.
7. Stolen car scam
Although not extremely rare, the stolen car scam, while relatively common, still claims victims.
In this type of situation, scammers sell vehicles far below market value.
However, the vehicles are stolen, and will certainly cause a lot of headaches in the future, with the buyer being held responsible for the crime of receiving stolen goods.
Therefore, the way to avoid falling for this scam is to obtain all the documentation and check the license plate, chassis number, and vehicle registration number to ensure that the car is in order.
6. The false facade scam
Here we have one of the scams used in car sales, with sheer audacity and technology involved.
In this type of scam, criminals take photos of car dealership facades and use image editing software to alter the phone number displayed on the license plate.
The phone number remains a landline, and when the interested party calls, the process is professional, with a secretary and extension transfers.
Here, scammers advertise a car that appears on the store's facade, and when interested parties make contact, they ask for a deposit or even full payment into a third-party account.
Typically, those who fall victim to this type of scam only discover they've been scammed when they go to pick up their car at the dealership and realize they've been tricked.
To avoid falling into this trap, it's necessary to check the information received on the company's official website.
This can be done through Google Maps and also social media such as Facebook or Instagram.
It's also crucial not to make any deposits before seeing the car in person.
5. Messaging app hacking scam
Here we have another scam that has been growing in this age of digital modernity, involving a real transaction with a serious and honest seller.
Thus, the advertiser puts the car up for sale on the internet, provides the seller's phone number, and hacks into the seller's cell phone, monitoring the entire negotiation process.
Furthermore, when the transaction is almost complete, the malicious actor takes control of the conversation, blocks the seller's access to the messaging app, and provides false payment information.
But typically, the criminal requests deposits or down payments into third-party accounts from the moment they hack into the seller's cell phone.
Since the messages are sent from the seller's real number, many people end up falling for them.
To avoid being scammed, it's important to pay attention to the account ownership and not transfer payments to third parties.
4. Consigned vehicle scam
Here we have a scam perpetrated by dishonest car dealerships.
They look for advertisements for the sale of vehicles or vehicles that have "for sale" signs.
Therefore, they contact the owners and convince them to leave their vehicle on consignment, claiming that there are customers interested in the model, color, and everything else, and that they can sell it faster for a higher price.
In this type of situation, three types of scams can occur:
As soon as an interested party appears, the store takes the person's documents, applies for financing, puts a lien on the vehicle, tells the owner that the credit was not approved, and pockets the money.
The store sells the car, doesn't transfer ownership to the new buyer, keeps the money, and claims to the owner that the car was stolen from the store.
The store sells the vehicle, falsifying the owner's documents and using a fake power of attorney. In some cases, the vehicle ends up in junkyards, and they tell the owner they sold the car or simply disappear.
As you can see, in this type of scam, both the buyer and the seller of a car end up being harmed.
The best way to avoid this type of scam is to research the store's reputation before making a purchase.
3. Lottery Consortium Scam
Here we have one of the best-known and most common scams used in car sales, but one that still claims many victims.
Through advertisements or personal contacts, scammers offer to sell already-drawn or awarded consortium shares with advantageous conditions, in which the interested party would have the right to join an already awarded consortium by paying a transfer fee or commission to the owner of the awarded share or their representative.
The scammer uses the argument that he has contacts with people who can make the quota the preferred option this time.
One of the downsides of a consortium is that it can take a long time for a person to be drawn in the lottery.
Therefore, this scam targets those who are in a hurry, since the scammer ends up asking for a commission or down payment to ensure that you are chosen for the next draw.
To create the impression that it's a good deal, the scammer shows documents proving that the raffle has already taken place and that the car is about to be released.
At that moment, the victim pays the commission and, as if by magic, the seller disappears.
To avoid falling for this type of scam, you need to understand how a consortium works.
No consortium promises a guaranteed prize draw. It's that simple.
2. Factory-direct car scam
This is one of the oldest scams used in car sales, and unfortunately, it still works.
Here, criminals advertise vehicles sold directly from the factory, claiming to be friends or relatives of car manufacturer employees and that they can buy and resell cars with discounts of up to 20%.
This discount percentage refers to the discount provided by factories to employees.
To make the scam more realistic, the gang stages a scene where the car manufacturer's employee appears and confirms everything to the potential customer.
Some of the more cunning scammers even invite the interested party to go to the factory.
There they arrive at the portal and “by coincidence” end up finding their friend or relative leaving the factory at the end of their shift.
Then a conversation begins where a friend or relative, wearing a fake uniform and name tags, shows tables and purchase options, all on company letterhead.
Only one rule remains unchanged in the performances:
At some point, the employee will say that the full or partial payment must be made in advance and must be withdrawn directly from the employee's account to the factory's account.
At that point, they provide an account and request a deposit of the total amount or some kind of down payment, and as soon as they receive the money, they simply disappear.
The advice to avoid falling for this scam is the same as before: don't deposit money into an account belonging to someone you don't know, and be wary of large discounts that seem like a good deal.
1. Rental car scam
And the latest scam involving car sales is relatively new and has been growing significantly lately.
This is the rental car scam.
Here, the scammer goes to a company and rents a car for a certain period of time using forged documents.
Next, he creates a fake document for the vehicle, through an unlicensed agent, and advertises the rented vehicle online.
Then, the buyer gets in touch, verifies the document in the seller's name, and transfers the money to the fake owner.
When the contract expires, the rental company then blocks the vehicle and initiates its repossession through the courts.
To avoid falling victim to this scam, it is recommended to check the vehicle's history.
It is possible to buy a car without making a down payment.
Did you notice anything in common in the car sales scams we just described?
Most of them required a down payment or full payment upfront.
Did you know there are ways to buy a car without making a down payment?
To help you secure your vehicle and avoid scams, our experts have prepared content showcasing 4 excellent alternatives for buying a car without needing a down payment.
In addition to providing financial benefits, this helps prevent scams.
To learn more, just click below!
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