So, you are surfing the internet for your classic dream car, and up pops an ad for just the car you have always wanted in your garage. Even better the price is right on target, and within your dream budget to spend on the classic car. So off you go clicking way to get the first crack at owning your dream car completely unaware of the online classic car scams.
Pause a moment and think. There are lots of fraudsters out there, with a range of shocking scams at their disposal. And they are targeting just about every market going, including that of classic cars.
So how can you ensure that your dream vintage car is not a fraudulent deal? And if you are selling, how can you be confident that your buyers – and their payments – are real?
Internet Scammers Are Always Out There
Scammers have been around forever. So, what makes the web such fertile ground for fraudsters?
Firstly, it is easy to hide. On the web, it is a lot harder to track down the people behind the scams. Then there’s the global nature of the internet: conmen can operate at scale, from anywhere around the world. Or perhaps you are new to the world of online car purchases. You might know how to spot a dud at a real-life auction, but maybe you are not so experienced at picking up the warning signs of an online fraud. Another reason is that there are plenty of great, reliable online auction sites and deals, which fraudsters copy or exploit.
Unless you know what, you are doing, you could fall foul of a fraudster. And finally, conmen succeed because if you think you have found the car of your dreams, you might throw caution to the wind in your excitement. You always need to keep a clear head when it comes to vehicles – whether it is buying them, driving them, or choosing suitable insurance.
So, what are the scam warning signs that you should be looking out for?
Questionable Ads and Listings
If an offer seems too good to be true, then it probably is. You are unlikely to be getting a 1969 Chevrolet Camaro in excellent condition for less than $15,000, no matter what any ‘seller’ promises.
However, it can be hard to price classic cars, as so many are unique. So, you do get genuine ads listing absolute bargains. Many fraudsters know that offering a pristine Ferrari at a knockdown price will set alarm bells ringing. Instead, they make their offer seem just a little better than the competition.
While you might think you can just ask about a good deal you have spotted online and pull out if it seems unreliable, the trouble is that you might get sucked in. Fraudsters can be convincing and persistent. Of course, the details of that dream car will have been cloned from another, genuine website. So even carrying out background checks might not help, as the car is real – just not owned by the person who has placed the ad.
Instead, it has been placed to trick you into one of the scams below.
Faked or Cloned Messages and Websites
Every time you get a message or click on a website, remember that it is easy these days for conmen to pretend to be someone else. They might have stolen someone’s identity, perhaps through a phishing scam, and hacked into their emails or eBay account. So, you are not really dealing with ‘Bill’ whose eBay feedback is 100% positive, but with someone far more dubious.
You are protected if you stay on eBay and follow its guidelines – but you can guarantee that the fake Bill will do their utmost to lure you away from the site. Or perhaps you are corresponding with someone who appears to be a reputable dealer in California, whose emails come complete with logos, DMV registration details, and phone numbers.
Remember: they could originate from a smartphone anywhere in the world. Your suspicions might be roused by language errors, or you might notice that the message is sent from a strange email address. But con artists are getting smarter at disguising email and web addresses, and many of them live in other countries and speak English well.
You can check business registrations at the State’s Department of State office. If there is a company of that name, get their contact details from a reliable source: don’t just click on the link in their email, or phone them on the number they have provided.
Fishy Payments and Overpayments
Conmen might simply advertise a car for sale, take your payment, then disappear without ever sending you the vehicle. But often, the tricks are more elaborate or subtler.
If you are a seller, you might receive an overpayment. When the ‘buyer’ contacts you to apologies for the mistake and ask for a repayment of the surplus into a new account, you will be happy to oblige. Trouble is, that original payment was made from a stolen bank card or hacked account and your bank will reject it. This can happen sometime after you think the payment has cleared. You will lose both your overpayment and any goods you’ve sent. If you are using an auction site such as eBay, remember that you are only covered by their guarantees if you carry out all correspondence and transactions through their site.
If your ‘seller’ or ‘buyer’ wants to switch to chatting by email, or won’t use PayPal to take or make payments, you must walk away.
Shady Deposits, Deliveries, and Refunds
It is normal to pay a deposit for a large or valuable item. After all, you have been searching high and low for that ultra-rare Camaro, and you are not going to let it escape now!
But you might transfer the cash and then never hear from that ‘seller’ again. You are no nearer owning your dream set of wheels – but you have a whole lot less cash. Sometimes, sellers will offer to send you the car for a trial period if you pay a deposit to a delivery company or into a so-called ‘holding account’. If you are not satisfied, you just return the car and get your deposit back. Of course, there is no delivery company, and no car – just a lost deposit.
Or perhaps you are not the buyer but the seller, and you are advertising a classic car part online. You get an email offering you a deposit, saying they will send a courier to collect the item. When the courier arrives, you find you need to pay them a sum that is more than the deposit. The ‘buyer’ promises to refund you, perhaps even offering over the odds to compensate you for your trouble. You hand over the item and the cash – and wave goodbye to both forever.
Think you would never fall for it? Think again. Many scams work by simply confusing you. In the heat of the moment, you might succumb before you have time to think straight. And ego never fails to get in the way of good judgement.
If you feel you have built up a rapport with your fake buyer, based on your assumption that they share your love of classic motors, then it is easy to be overly trusting.
Fake Matching Services
If you are selling a vehicle, particularly a rare or high end one, you might be contacted by someone claiming to have been commissioned to find such a car on behalf of a collector. They offer to match you with this buyer for a small fee.
There is no mystery collector – just a conman out to pocket your cash.
Tips For Avoiding Scams
- Beware of elaborate stories, such as needing to sell at a knockdown price due to moving abroad.
- Beware of ‘sellers’ who have excuses about why you can’t come and see the vehicle, or ‘buyers’ who cannot come to see the one you are selling.
- Do not be pressured into making a payment. If your ‘seller’ says other buyers are interested and you need to make a deposit, walk away from the deal until you have had time to think. Slow down the process.
- Do your research. If you know the going market price for a vehicle, you will spot fakes more easily.
- Join a specialist car club and ask for advice. Their members are the very best sources of info about the cars that interest you and can help you find a genuine motor.
- Check multiple sites. While genuine sellers may list their vehicles in more than one place, a classic car that turns up everywhere, repeatedly, is likely to be a fake ad.
- Do not be too trusting. There are all sorts of subtle tricks that con artists use to lull you into a false sense of security: using women’s names in their listings, for example.
- Stick to using reputable dealers and sites and carrying out all transactions according to their guidelines.
What To Do If You Spot a Scam
If you are suspicious of an ad, you see online, or have difficult dealings with any advertiser, contact the site. eBay, Facebook marketplace, and all the online listing sites should take your concerns seriously.
You should also report it to the authorities. Classic car clubs will also be glad to know of the warning.
If you think you have been scammed, contact your bank immediately to see if you can stop or claim back any payments. If you have been handling the sale through a site such as Facebook or eBay, contact them, too.
Do not feel too ashamed to act. It is devastating when you realize you have been tricked, not only because you have lost your cash, but also because you feel embarrassed at your gullibility. When you try to explain the trick to friends and family, they might not understand how you got taken in.
Fortunately, anti-fraud experts know only too well how easy it is to be fooled by skilled conmen, and you will get a sympathetic hearing from the authorities and your bank.
Finally
In buying a classic car speed is not your friend as scam artists feed upon speeding up the process and your ego so that you stop thinking and seeing some of the warning signs that point out problems ahead. Hopefully you will never encounter the conmen in the automotive world, but the internet is a melting pot for the unsuspecting so when you find “your deal” then slow down and think thru the steps to avoid the online classic car scams.
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Classiccaradvisors, thanks for the info . Not sure how to list this classic car fraud site I was looking at and negotiating with , but when I asked the sales man I was talking with to go into the shop and FaceTime me with the car he said his manager would do it next week , I pulled up the web site again and highlighted a pic of the car and right clicked my mouse and tapped on the google search of the car and it came up at another car site along with all the cars he was advertising on Charlie’s Hudson collection car site . When I called back the number was disconnected . The site is still active and the name of the person I was dealing with was Alex Smith . Please beware of this site !!!! And pass along if possible . Thanks