Buyers beware: car scam warning

The number and types of car scams are on the increase and with so many deals currently available buyers and sellers are at danger of losing either their money or car.

Many of the scams are targeted at private buyers and sellers, and can often be done through private classified adverts, websites or emails. However some tactics, such as bait-and-switch, are also being used in car showrooms as dealers attempt to sell off unwanted stock.

Parker's reveals the latest scams that people should be on the look-out for and how to avoid them.

Text message scams

This is mainly targeted at people who include their mobile phone numbers when placing an advert for selling a car. The seller then receives a message from someone posing as a potential buyer but that they can't call so could the seller ring them?

The number that the seller is asked to call back on is a premium rate number and the seller is charged for making the call. The easiest way to spot this scam is to look out for numbers that start with '090' or '091'. Sellers should treat any call back request with suspicion especially if the number isn't a recognisable landline or mobile number.

'Phantom' car scam

These are often adverts placed on private classified websites and although the pictures may appear genuine they are often taken from other UK car websites. The prices can be well over £20,000 off the list price and often includes Audis and Volkswagens models.

The seller is only available via email, usually based abroad and will ask for a deposit and shipping costs. This money is to be held by a 'secure third-party' and won't be released to the seller until the buyer has received the car and is happy with it. However, there is no car and any money paid goes straight to the scammer. See how the full scam works here.

Bait-and-switch

This is a scam in which a dealer advertises a car, and tells you there is stock available, despite knowing there isn't. Once a buyer engages with the dealer, his aim is to sell them an alternative car.

It's usually an email scam but can also be a problem when actually buying from a dealership. This is done to make the buyer browse other more expensive models when they find the advertised offer isn't there. Always ring to check if the car the deal is offered on is actually there before travelling, and don't be diverted into considering another model if it isn't what you want.

Forged bankers drafts

Some sellers have received what they thought were genuine bankers' drafts when selling their cars. However, days after they have deposited the draft they are told by their bank that it is actually forged.

This leaves the seller with no money and no car. Sellers should get a receipt for any banker's draft but not hand over the car keys until their bank has confirmed the draft has properly cleared.

Car matching scam

The matching scam works by a car seller being told that they will be matched with a definite buyer for their car. A seller is normally called after they have placed an advert for their car in a magazine, newspaper or on a website.

The seller is then promised that a buyer has been found but that they will have to pay a matcher's fee up front before any sale can be completed. However, in most cases there is no actual buyer at all. The contract with the matcher can't be cancelled and any money paid by the seller is lost. Treat any cold caller promising instant buyers with scepticism especially if money is required for the service. The best bet is to wait for potential buyers to contact you direct.