Got a car for sale? Car dealers are notorious for offering ridiculously low prices on trade-ins. Nothing new about this, right? When dealers give you lowball offers you may decide to sell the car yourself, for a more reasonable price. You’re likely to get a lot more money, but of course selling a car yourself brings problems of its own. For instance, strangers come to your house. They too, might try to lowball you and may even disparage your car to get the price down. All this is bad enough, but now thieves have come up with a new way to take advantage of unwary sellers.
Here’s what happened to one would-be victim (as described on the website, Everythingzoomer.com).
His Lexus had low miles and was in great shape, so he knew it could bring a high price. When a dealer threw him a ridiculous offer, he went to autotrader.com and listed it himself. Within a day he got a call from a “charming lady” who gave him her name (though it was surely not her real name). She introduced herself as a junior executive with an auto marketing group, and said she had a local buyer for him. Assuming the Lexus passed their inspection, she said, the buyer was willing to pay $500 over the asking price.
Sounds good so far. Then the other shoe dropped. All the seller had to do was give the charming lady a certified check for $499, as payment for finding the buyer. Uh… wait a minute. The seller asked, “How about you just take your payment out of the total?”
“We don’t do business that way,” was her reply.
The seller grew more cautious as the conversation continued. He asked her to put it all in writing in an e-mail and send it to him, which she did. Only, the e-mail made no mention of having found a buyer and only promised to scour their registry for a client willing to buy.
The e-mail went on to say the auto marketing company she represented advertises with major companies like Car and Driver, Walmart, Military.com, and others. It included a list of dozens of what it called, “affiliated websites.” And it promised a refund of $400 of the fee if the car did not sell within 12 weeks. Of course, there didn’t seem to be a guarantee the car would sell for the asking price or anywhere close to it.
The seller did get a follow up call from the same charming lady the next day, insistent on an answer. Again he suggested she take her cut out of the total. Thus, the “charm” ended there, and so did the transaction. Chances are there was no buyer, possibly no auto marketing group… just a way to pick a pocket.
Sight Unseen?
BusinessInsider.com warns, any offer you get from someone who has not seen your car first – even a dealer – isn’t worth a plugged nickel. Suppose you call a dealer and ask what he will give you for your 2005 Lexus. He asks a few questions, makes an attractive offer, treats you like his best friend… the old “charm” routine again. Then you drive to the lot, and the story changes. Now he’s got you in the showroom where he tries to wear you down. If this happens, BusinessInsider says, shop your car around to multiple dealers to learn more about the real going price.
Craigslist
Craigslist has become a popular way to list cars for sale, and anything else under the sun. This can be a huge money saver for sellers and buyers. But there is also a lot of opportunity for fraud. The postings of cars for sale may be fake.
Assuming you do sell your car yourself and someone offers a money order or cashier’s check, beware. The money order or check could appear to clear your bank, but a few days later, you could get a call from the bank telling you it was fake. Wait until the bank assures you the money is definitely in your account before you turn over your car or other property to the buyer.
Also be wary of sales of any kind where the buyer “accidentally” makes the money order or certified check for too much, and asks you to refund the difference. Again, this is a common scam in which the victims dutifully refund the overage, only to find out the money order or check were fake. Until the bank assures you the money is yours, sit tight. Or simply refuse the sale.
Craigslist Scams Are Everywhere
Here are some of the warning signs of Craigslist car scams, courtesy of fraudguides.com
- Cars price far below current market value.
- The seller claims to be in the military and is stationed overseas.
- The posting does not include a phone number.
- The seller will demand you use an online escrow service of their choice.
- The person receiving the call is referred to as a “pickup agent.”
- Payment must be wired to or from another country. Western Union is often requested.
- The buyer or seller is very anxious to conclude the transaction.
There is a legitimate escrow company – known as SquareTrade – which protects buyers and sellers in the process of an online sale. However, many scam artists have claimed to be using SquareTrade as a way to gain your trust. SquareTrade points out one way to know if the deal is a scam, is that the perpetrator will ask you to use Western Union to wire the money. SquareTrade does not do that.
Don’t be fooled by a website which looks just like a legitimate site, like BankAmerica, SquareTrade, or a credit union. This is where they hook a lot of people. The Federal Trade Commission gets tens of thousands of complaints each year about fraudulent buy/sell deals posted online. Rather than respond to a message which contains a website which appears real, go to your browser and key the name of the website in yourself.
Teresa Ambord is a former accountant and Enrolled Agent with the IRS. Now she writes full time from her home, mostly for business, and about family when the inspiration strikes.