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National Consumer Protection Week: How to Spot and Avoid Online Car Sales Scams
Online car sales scams continue to ramp up as buyers and sellers make use of online marketplaces and social platforms. During National Consumer Protection Week, CARFAX urges consumers to stay alert and informed with tips to help identify red flags and avoid falling victim to fraudulent vehicle listings.
"With billions lost to fraud annually, car buyers can't afford to take chances with unverified listings," said Nakul Goyal, Chief Marketing Officer at CARFAX. "Every vehicle on CARFAX Car Listings comes with a free CARFAX Report, giving consumers full transparency into a vehicle's history. When you're making one of life's largest purchases, that trust isn't optional. That's why more than 25 million consumers visit CARFAX.com every month."
In the automotive space, one of the top scams experts warn about is VIN (Vehicle Identification Number) cloning, where a legitimate VIN is copied onto a stolen or illegal car. A CARFAX report can reveal inconsistencies in registration, mileage, or service history. For example, if a vehicle shows service records from different areas at roughly the same time, that's a red flag. Other warnings include fraudulent dealership websites and listings, and escrow scams.
Top Tips to Help Avoid Online Car Sales Scams:
- Get the vehicle's history report before committing to a purchase. This helps consumers understand the vehicle's past and avoid scams such as VIN cloning.
- Buy from a reputable dealer or site, such as CARFAX Car Listings or from a CARFAX dealer, where vehicles are vetted for safety, title, and recall status.
- Have the vehicle inspected by a trusted mechanic to detect hidden damages and confirm the vehicle's details.
- Verify all paperwork, including the title and VIN, to ensure it matches the vehicle. Buyers should also independently verify listings and vehicles.
- Complete transactions in person, in a safe, public location such as a police station parking lot. Never send money through wire transfers, or any online method, before seeing the vehicle and verifying the seller's legitimacy.
- Trust your instincts: if a price seems too good to be true, it likely is.
Reported fraud losses now total tens of billions of dollars annually, according to the Federal Trade Commission. This month, the Kirkwood, Mo., Police Department is warning residents about a fraudulent website that duped at least one potential car buyer out of $15,000 with a wire transfer and another potential victim who showed up at the listed location looking for vehicles that didn't exist.
"Unfortunately, car sales scams are becoming more common, and potential buyers need to stay vigilant," said Officer Gary Baldridge of the Kirkwood Police Department. "I would urge anyone making a significant purchase online to contact the local police department and verify there is a business at the listed address. Also, scammers often demand payment before a vehicle is seen in-person and use high-pressure tactics to rush transactions — both major red flags."
Editor's note: Reporters can reach out for an interview at any time. Please contact Em Nguyen at emnguyen@carfax.com.
About CARFAX
CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service, and sell cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value , and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.
S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets.
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SOURCE CARFAX
