The inevitable day has come: it’s game over for your car. It’s a good thing that brand new and used vehicles are now available online. For example, the used cars Honda Syracuse NY site can meet your car shopping needs from the comforts of your home.
However, whether you buy in physical stores or go to online sites, used car scams still teem the industry. According to the Better Business Bureau, the used car industry had a recorded 10,554 complaints in 2017, pushing it to be the 7th market with the highest amount of charges.
How do you avoid such scams? Here are a few tips:
Be familiar with the different scams.
Of course, to avoid being scammed when buying used cars, you must know what kinds are out there. You must know what’s happening before it has even happened.
- They will ask you to pay via wire transfers.
A real, honest used car salesperson won’t ask you to settle the payments through a wire transfer company such as MoneyGram of Western Union. Scammers who use this method do this because wire transfers are very loose when it comes to identification.
Request to use another method other than wire transfers. Preferable are those that require proof of identity such as PayPal or a bank. The best option is just to do it in person if you can.
- They will sales talk you into impulsively giving a deposit.
“I actually have a sure buyer coming this afternoon.” Does this line sound familiar?
Sometimes, it is normal for used car sellers to market their product like it’s extraordinary. However, deceptive sellers might use sales talk like this to increase the pressure on you. They will use persuasive lies to make you give in to your impulse and buy the subpar vehicle immediately. After you’ve given the initial deposit, they disappear the next day.
- They will ask your payments to be placed in a third-party account.
Also known called escrow fraud, this scam can be done in various ways. But the main process involves the seller promising a product that you can get only after you have placed your payment or deposit in an escrow or holding account. They will present a hot, foreign car located abroad that you can get for a lower price compared to the market. You’ll be duped into making a payment to an escrow account only to never receive the car.
- They will alter the mileage of the car.
This “odometer fraud” costs American consumers over $1 billion each year, with more than 450,000 cars sold that have false mileage readings. This scam happens when the sellers disconnect, reset or change the mileage of a vehicle. This can be done on both analog and digital odometers, which makes it scarier.
- They will sell stolen cars.
Yes. People actually sell cars they stole. If the car you bought is a stolen one, your receipt won’t make you the new legal owner according to law.
Beyond being aware of stolen cars, odometer fraud, and escrow accounts, this next tip is the surest way to check if the vehicle you’ve chosen is a safe buy.
Check the background.
One of the sure fire ways to avoid scams is to properly check information regarding the car you’re buying and the sellers themselves.
- Cars
In checking used vehicles, a carfax report you can get online can provide important details such as odometer data, stolen car check, ownership history, the list goes on.
Especially if you’re not knowledgeable about cars, it is wise to hire a mechanic or just ask a friend to help you out and do a pre-purchase inspection. Go for a 20-minute test drive to gauge the vehicle better. You can also choose to buy from individual sellers, meaning they owned the car themselves, therefore, they know the exact problems of the vehicle.
It is also helpful to check the actual brand-new market price of the vehicle that you’re buying to see if the offered amount is fair. It is also wise to check if there are any updates and upgrades done to the model to see how much value the old versions possess. If the price is way too low compared to the market value, you must ask why and weigh if their reasons are justifiable. If not, be wise to reject the vehicle and find better deals, because it is more likely that you are being scammed.
- Seller
You can always ask for a legitimate, government I.D., like a passport or a driver’s license, for proof of identity. Scammers usually fake their names so they can run away after a successful fraud operation. You can also check if the seller company is listed in the carfax system for better security.
Be vigilant with the details.
Some contracts might contain hidden fees that may reach a few hundred bucks, which is already too high. You might want to read carefully throughout the document and ask for clarification if you find perplexing statements. You can also do the Vehicle Information Number etching yourself. It can cost you as little as twenty bucks, but harsh dealers sometimes charge a hundred dollars for it.
Some dealers will also provide you a spread-out, monthly loan plan instead of shorter, much larger payments. Because longer and smaller bills usually sound like a more practical choice, they might persuade you into buying vehicles you actually cannot afford in the long run. Sometimes, the car quality will depreciate faster than you pay your monthly plan, and you will end up paying for a broken vehicle.
You’ve seen the numbers, and you might as well search for very current reports about sellers scamming large populations. Used vehicle scams are still very present in places like Syracuse, NY. Because cars are one of the most expensive investments that a person can buy, being deceived while you buy one can be a huge loss. In an industry where scammers still plague the market, the trick to avoiding them is simple: do your research and be cynical when you finally buy one.
