In the market for a new car? Be on the lookout for unscrupulous sellers looking to take you for a ride! In response to an increase in consumer complaints to the National Consumers League\u2019s Fraud Center, and with the arrival of the upcoming peak car-buying season, consumer advocates are warning that car shoppers this spring should consider themselves at an increased risk of falling victim to a scam.\u201cScam artists prey on consumers in search of a bargain, and these scams are no exception,\u201d said John Breyault, Director of NCL\u2019s Fraud Center. \u201cUnfortunately, the only person that\u2019s getting a steal are the con artists themselves.\u201d<\/p>\n
Since the beginning January 2011, NCL\u2019s Fraud Center has received more than 100 complaints from consumers nationwide about these scams, with a total reported loss of nearly $293,674.<\/p>\n
The used car scams reported to NCL generally involve a classified listing on any of a number of popular sales and auction sites such as craigslist, Yahoo! Autos, or eBay. The listings are generally for late-model automobiles, often luxury brands, at well below market value. In the schemes, when the victim contacts the scammer, they are told that the seller is not local and that payment for the car itself or for shipment of the car should be sent via wire transfer to the seller. Often, the seller claims to be a member of the armed services who is either already deployed or preparing to deploy. As such, quick payment is necessary to ensure that the buyer receives the \u201cgreat deal\u201d on the car.<\/p>\n
NCL recommends consumers avoid used car sales with the following red flags:<\/p>\n