Reasons why used car buyers are falling prey to online scams
Vehicle information provider, HPI, understands how confusing it can be for online used car shoppers to determine whether the vehicle they’re looking at online represents good value or not. Bagging a bargain via the internet should be the norm but the reality is that it comes with its own risks. HPI urges used car buyers to be aware of online scams catching out unsuspecting consumers today.
“The latest Google research shows that a massive 74% of people in the UK now use the internet to find their next used car and visit an average of 18.2 sites, over a three month period,” says Nicola Johnson, Consumer Service Manager for HPI. ““Internet shopping is fast, easy and convenient, but beware; online scammers are on the loose with a range of sophisticated tricks, all of which are designed to ‘con’ innocent motorists out of their hard-earned cash.
“Online sellers will often come across as friendly, offering to make the sale as easy as possible, while at the same time offering a bargain. It is little wonder therefore that many buyers are keen to rush into a purchase. However we urge them to use their head, not their heart, and conduct all the right checks before parting with their money.”
An increasingly popular trick to con online buyers is the ‘Virtual Car Seller’ or ‘Escrow Con’. It starts with an advert on a website, with a seller who has a car for sale at a knock-down price. The seller is usually based abroad and claims they need a fast sale, so the vehicle is already with a shipping company. Without viewing the car, the buyer is asked to transfer money to a third-party (‘escrow’), who will hold it until the vehicle is delivered.
Nicola Johnson warns “Never buy a vehicle you’ve never even seen. It’s easy to be swayed by a rock bottom price, but no bargain is worth the risk. Put yourself in the sellers position: would you ship the car to a buyer at your own expense, sell it cheaply, and offer to ship it back at your own expense if the buyer doesn’t like it? HPI sees frauds like this on a depressingly regular basis. An HPI Check is crucial in protecting consumers against the threat of falling victim to this fraud.”
Another potential danger when buying online is ‘cloning’ – identity theft for cars. Criminals steal a car and give it a new identity copied from a similar vehicle already on the road. The criminal will disguise the unique 17 digit Vehicle Identification Number (VIN) on the stolen car, as well as using a stolen V5/logbook to try to legitimise its identity.
Nicola Johnson adds, “This scam is commonly used by online sellers, and consumers who buy a clone stand to lose the car and their money, once the vehicle is returned to the rightful owner.” As well as confirming whether the car is currently registered as stolen, has been written-off, or is on finance, the HPI Check also protects buyers with the HPI Guarantee. This provides up to £40,000 financial reimbursement in the event of the car not being everything it seems – including a clone.
HPI’s Top Tips for Online Used Car Buying
Shop Around – compare prices on the car you're considering through other classified website so you get a feel for the marketplace. These sites will give you an idea of the price you can expect to pay for a particular make and model. If you find a vehicle that appears to be cheap, you need to find out why, and be on your guard.
Verify the Seller's Credibility - check out the seller's history by reviewing the ratings from other sellers to ensure you're dealing with someone who will deliver the car according to the terms you are offered.
Narrow Down the Options – Create a short list and do an HPI Check on the vehicles you’re seriously considering
Always Arrange to Test-Drive the Car - arrange to meet the seller in person at a safe location – preferably at their home address if buying privately, to test-drive a model of the car you're considering. Make sure you put the car through its paces by driving on a variety of roads and don’t just take it for a spin around the block.
Before you part with your cash, make sure you cross reference the VIN with the VRM to make sure they match.
Paying Online - if you're buying online, or even just making a deposit, ensure that the website is secure – pay with a credit card which will help should the worst happen – in the event of fraud.
