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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. Amazing!
However, when you contact the seller, you find out that 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 may also 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 consumer reported their experience, "I paid for a car...by Bit Coin...to a company claiming to be [company name redacted] through a private seller [name redacted] after we agreed on the amount of $2400 for the car. She claimed she was recovering from surgery and that she made arrangements with the company [company name redacted] to deliver the car on her behalf, the car never arrived even though I have a bill of sale."
Once you’ve paid the third-party company, usually by a wire transfer, digital wallet, or prepaid debit card, your vehicle won’t be delivered. The sale was a scam, and the con artist was in cahoots with the third-party transport company. Unfortunately, your money is gone for good.
How to avoid car sales scams
- Watch out for prices that are too good to be true. It’s probably a scam. Scammers know that 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 that you haven't yet seen.
- Are the extra fees piling up? 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 shared that consumers were charged extra money for gas, port tariffs and 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.
For more information
See this BBB Investigation on vehicle shipper and escrow scams. You may also want to read the BBB Tips on buying a used car and buying a car online.
Read more about vehicle transport scams.
If you see a car sales scam, report it at BBB.org/ScamTracker and to the online marketplace where you found it.
Subscribe to BBB Scam Alerts for weekly updates about new scams.