With used car prices skyrocketing, consumers are turning to the internet to find a deal. But the Better Business Bureau is warning consumers to hit the brakes on these types of transactions as many are turning out to be scams.
How the scam works
You see a used car listing online or through a sponsored ad on social media. You begin communicating with the seller and after agreeing to a deal, you’re asked to wire money for the vehicle to a shipping/escrow company. The seller claims they will keep your payment in escrow for five days to make sure you’re satisfied with your purchase.
In another scam, the seller claims her husband recently died and is trying to get rid of his old car because it’s “brought back bad memories.” The seller says someone else was going to buy the car but didn’t get the loan, so it’s ready to be shipped.
In each instance, the scammer makes the fraud appear legitimate by assuring the transaction will occur through a third party’s buyer protection program.
One consumer reported losing $82,000 to BBB Scam Tracker from an online vehicle purchase which turned out to be a scam. “[I] purchased a vehicle from this dealership only to find out the car does not exist nor does the dealership.”
After the transaction, the scammer typically ignores all follow-up calls, text messages, and…
