Car scams: How to spot them and stay safe
Online marketplaces are a great way to buy and sell pre-owned vehicles. Unfortunately, fraudsters also use them to scam both buyers and sellers out of their money.
Here’s how you can spot if a fraudster is trying to scam you, and what you can do to protect yourself:
1. Car seller scams
Picture this: you’re browsing online classified ads to find your next car. And there it is! The perfect vehicle with all the trimmings, low mileage and a full-service history at an unbeatable price.
You contact the seller as quick as you can. Luckily it’s still available – but not for long according to the seller. They’re under pressure to sell fast due to emigration, a death in the family, a sick relative or a debt that needs to be settled. There are many buyers interested, so if you want it, you’ll need to act fast.
Don’t want to miss the deal of the century? Ok, then you’ll need to pay up – a deposit or even the full amount. And don’t worry – you won’t pay the seller directly; you’ll be directed to a legitimate-looking Escrow site where they will safeguard your payment until you get the keys to your new car.
Except you won’t get those keys because there never was a car. These scammers are skilled fraudsters who lure their victims in with irresistible deals and compelling stories to rush payments.
How to protect yourself from seller scams:
- Research the price. If the deal looks too good to be true, it almost always is.
- Check the seller’s identity. Look them up on social media. If you can’t find anything, or their profiles look newly created or suspicious, walk away.
- Watch out for excuses. Scammers often refuse to meet in person and hide behind emotional stories.
- Avoid email-only communication. Ask for a phone number and call them.
- Always meet in public and view the car in-person. Never buy a car you haven’t physically seen.
- Refuse upfront payments. No deposit. No “reservation fee”. No exceptions.
- Don’t let urgency pressure you. Fake emergencies are a classic manipulation tactic.
2. Car purchase scams
In this version of the scam, the fraudster pretends to be interested in buying your car, but they’re really after your money, your personal information or the vehicle itself.
You can often spot them by their behaviour:
- They don’t ask real questions about the car: no interest in its condition, features or history.
- They claim to have buyers lined up for your car, often with “approved finance” or willing to “pay more than your asking price.”
- They make odd or intrusive requests, especially for personal, banking or vehicle documents.
- Something just feels off. Scammers can seem confident and smooth but trust your instincts.
How to protect yourself from buyer scams:
- Move the conversation to a call by asking for their number. Scammers disappear quickly once their anonymity is challenged.
- Never share personal or banking details. No exceptions.
- Don’t pay any “listing fees,” “verification charges” or “third-party service costs.” Legitimate buyers never ask you to pay anything.
- Trust your instincts. If you feel uneasy, wait for another buyer.
- Verify their identity before meeting.
- Meet in a public place and take someone with you for the test drive.
- Photograph their driver’s licence before handing over keys.
- Never leave keys unattended. Key-swop theft is a common tactic.
Disclaimer: This article is for information purposes only and does not constitute financial, tax or investment advice. Readers are strongly encouraged to seek financial or legal advice before making any decisions based on the content.
Standard Bank, its subsidiaries or holding company, any subsidiary of the holding company and all of its subsidiaries, make no warranties or representations (implied or expressed) as to the accuracy, completeness, or suitability of the content of this article. The use of the article and any reliance on the content is at the reader’s risk.
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