Online car buying scams. How to Avoid Them?
When it comes to buying a car, most of the consumers rely on Internet car reviews, online vehicle history reports, detailed car listings, etc.. This is the reason why with the growth of internet significance in car buying process, online car buying scams have also grown.
Online car buying scams tend to affect buyers more than ever before. This is why we reckon that you need to read this blog post before passing to online transactions! So here we go with the most common scam variants!
The “Too attractive price” scam
In this scam, a potential buyer runs into an attractive car at a more than attractive price that is below market value. When the buyer contacts the seller, he/she is notified that the seller is abroad and the car’s shipping will be arranged upon receipt of payment, mostly via wire transfer or bank-to-bank transfer. When the money is transferred, the “seller” simply breaches the contact and leaves the buyer without car or money.
Most buyers are fairly cautious of sending large amounts of money to someone they have never met before. Scammers often recommend fake “escrow” services that will hold funds involved in the transaction until both parties are satisfied that the transaction has been completed. The fraudulent seller will offer the naïve buyer to ship the car and that there is no risk of fraud due to the “escrow” service. Once the money is transferred, contact is broken, in some worse scenarios additional funds are requested to cover “unforeseen” events. In any case, the legitimate buyer never receives a car and just loses his/her money.
If you feel you or someone you know has been a victim of online car buying scams, turn to a CA dealer fraud attorney.