How to Avoid a Scam When Buying a Used Car

Discovering hidden issues after buying a used car can be a disheartening experience. Many opt for used vehicles to avoid the hefty price tag of a brand-new car. However, differentiating between a legitimate dealer and a scam artist is crucial, as falling into the latter’s trap may lead to more financial woes.¹

How to Avoid Scammers

Here are 7 ways to shield yourself from scammers:

1. Always Purchase from Reputable Dealers

While platforms like Facebook Marketplace offer numerous options, exercise caution. Some websites do not check the legitimacy of sellers, making it challenging to distinguish genuine dealers from potential scammers. Lower your risk by dealing with individuals holding valid dealer licenses. Licensed dealers undergo a rigorous application process, including fee payment, certification, and background checks. ¹

2. Never Rely Solely on Online Photos

The adage “I’ll believe it when I see it” applies when shopping for used vehicles. The ease of manipulating photos makes it prudent to meet with the seller before finalising any transactions. Photoshop can conveniently erase dents, scratches, and other damages. For extra caution, run the photos through Google’s Reverse Image Search. If the same image appears on various websites with differing details, proceed to the next listing. The vehicle you’re viewing might be bait for a scam. ¹

3. Refrain from Sending Money Without a Meeting

A seller who refuses to showcase the vehicle before finalising the sale likely never intended to hand over the vehicle. Be cautious of those presenting various excuses to avoid in-person meetings, such as being “out of the country,” “on military duty,” or “attending to a sick family member.” Agreeing to send money to such individuals may result in losing both your money and the seller. ¹

4. Use Secure Payment Channels

Even if you trust the seller, maintain vigilance when it comes to making payments. Refrain from paying through unfamiliar websites to prevent the theft of private information, including credit card details. ¹

5. Always Bring a Mechanic

Don’t attend viewings alone, as this makes you susceptible to hidden damages and fees. Enlist a mechanic to accompany you and perform a thorough vehicle inspection. While you might assess the vehicle superficially, a mechanic can offer a professional evaluation of its working condition. Have your mechanic accompany you during the test drive to identify any unusual sounds or issues, which you can use for negotiation before signing any paperwork. ¹

6. Scrutinise All Documentation

Review all essential documents, including:

• Personal Identification Document, usually the front and back of their ID card.
• Vehicle Registration Certificate from the seller.
• Certificate of Roadworthiness.
• Proof of Purchase or Sales Agreement.
• Valid Motor Vehicle License.
• Completed Registration Application Form.^1,2

7. Prepare a List of Questions

Ask the seller or dealer the following questions to assess the vehicle’s condition and identify any inconsistencies:

• Reason for selling the vehicle.
• Duration of ownership.
• Source of the vehicle.
• Vehicle’s primary usage.
• History of accidents, floods, or fires.
• Known issues.
• Maintenance history.
• Upgraded or replaced components.
• Service history.
• Pricing rationale.
• Warranty details.
• Possibility of a test drive.
• Holding the vehicle for additional consideration.

By following these strategies, you can protect yourself from scams when buying a used vehicle. Make inquiries, scrutinise documentation, and remember that if an offer appears too good to be true, it likely is.

Disclaimer

The article aims to provide South African motorists with more information about how to potentially avoid being scammed when buying a used car. ^1,2

So, you are thinking of buying a used car. Have you thought of buying affordable car insurance? Get quote for affordable car insurance with PMD, with convenient, unique benefits like fixed premiums*, reduced excess*, and world-class service. T’s and C’s apply.

Please get professional financial advice from a certified financial advisor to ensure you select the appropriate financial services product.

This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.

Source:

1 https://www.carpages.ca/blog/avoid-used-cars-scams/

2 https://www.autopedigree.co.za/used-car-guide/buying-a-used-car-from-a-private-seller/59

Buying a Quality Used Car and Safety on the Road – Verify and Validate the Credentials of whoever wishes to sell you the Car!! https://t.co/RA39TrVRSe #ArriveAlive #BuyingCars #UsedCars pic.twitter.com/LV91HN5OMa

– Arrive Alive (@_ArriveAlive) November 16, 2022