Better Business Bureau

Scammers target online used-car buyers with fake listings and delivery schemes

BBB warns shoppers to verify sellers, inspect vehicles in person and avoid payments via apps, wire transfers or cryptocurrency.

Used cars continue to be in demand, and scammers know it. Con artists are taking advantage of shoppers who turn to online platforms in search of a reasonably priced used vehicle. Be wary of this latest twist and too-good-to-be-true prices.

How the scam works

You are shopping for a used vehicle on Craigslist, Facebook Marketplace, eBay or another online platform. You find the make and model you want at an excellent price.

However, when you contact the seller, you find out the vehicle is in another city and needs to be delivered. Fortunately, the seller knows a transport company that can deliver it to you. All you need to do is pay the transport company, which will hold the funds in escrow until the vehicle is delivered. You also may be asked to pay for various transport fees. Many scammers will add a sad story meant to tug on your heartstrings. For example, they may claim the car belonged to a relative who has passed away.

BBB Scam Tracker continues to receive reports about online used car scams. One Ohio consumer reported losing $1,000 after putting a down payment on a used car found on Instagram: “After making the payment through Cash App, I was told I’d receive confirmation and a tracking number, but the car never came. The phone number stopped working, and I was blocked from the Instagram page. I reported it to Cash App, my bank and the police, but my refund request was denied.”

How to avoid car sales scams

Watch out for prices that are too good to be true. It’s probably a scam. Scammers know used cars are in demand, and they will tempt shoppers with great deals.

Contact the seller by phone. As early as possible, speak to the seller on the phone and ask plenty of questions. If you get very vague answers, if the seller gets defensive or aggressive, or if they can’t confirm their location or the location of the vehicle, you’re probably dealing with a scammer.

See the car before you buy it. Always make an in-person inspection and take a test drive before you purchase a vehicle. Never pay for a car you haven't yet seen.

Beware of excessive fees. If you're talking with a seller or a third-party transport company about delivery of the car and the extra fees are adding up, take a step back before handing over your payment. Some BBB Scam Tracker reports have said consumers were charged extra money for gas, port tariffs, taxes and more.

Don’t give in to threats or pressure. Resist the urge to act immediately. Always take time to consider a purchase, especially if it’s a vehicle that costs thousands of dollars.

Consider how you're being asked to pay for the car. Scammers often ask for wired funds, prepaid gift cards or digital wallet transfers for payment because they are hard to track and there’s no way to get your money back. Some consumers have reported being asked to pay with cryptocurrency too. It’s best to make large purchases by check or credit card.

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