Scamwatch: secondhand car fraud
Stay one step ahead of the fraudsters with our series of articles giving you the lowdown on the scams they use to trick people out of their hard-earned cash - and how to avoid being taken in by them.
This week, a new ruse that fraudsters are using to trick secondhand car buyers out of their cash.
How does it work?
This scam involves the perpetrator hiring a car, paid for using a stolen credit card so they cannot be traced later on, and advertising it for sale at an attractive price.
Potential buyers who respond to the ads are then invited to a rented property - the seller's "home" - to view the car and take it for a test drive.
If satisfied, they are then asked to provide a £1,000 deposit to secure the sale and told they can collect the car at a later time.
The fraudsters behind the scam then return the car to the hire company and walk away with the deposits, never to be seen again.
How can I avoid being caught out?
Vehicle history check firm HPI has received lots of calls from motorists taken in by this scam.
HPI managing director Neil Hodson said: "We've heard of a number of recent instances whereby consumers have fallen prey to the rental car con."
He therefore urges buyers to protect themselves from criminals by always verifying the owner of a vehicle and their registered address before people handing over any cash.
He also warns against paying any money towards the purchase of a car before checking relevant documents, such as its MOT certificate.
"Always ask to see the logbook, V5C and MoT certificate," he said. "And if they can't produce them, walk away, no matter how convincing their story is."
I've been defrauded. What should I do?
If you hand cash over to a fraudster when trying to buy a secondhand car, you are unlikely to see your money again.
However, you can try to bring the perpetrator to justice by reporting the scam to Action Fraud on 0300 123 20 40.
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