The internet seemingly provides a more convenient way to purchase almost anything, including a used car. Used cars are legitimately sold on eBay, Craigslist and countless other internet sites. But, not surprisingly, not all online car sellers and websites are legitimate. Online car shoppers are routinely falling prey to fraudulent vehicle sales and false claims of vehicle protection programs.
One such scam involves sellers advertising used cars for sale on the internet that they do not own. These cars are often advertised for prices below book value with an explanation as to why the seller needs to get sell the car fast (e.g. military deployment or relocation). The sellers then refuse to meet interested buyers in person or allow inspection of the vehicle, sometimes claiming that they have already moved or that the vehicle is in a shipping yard. In an attempt to make the transaction seem more legitimate, the buyers are told to make payment to a third-party agent by wire transfer. Once the payment is made, the seller pockets the payment and never delivers the car.
These scams often include reference to legitimate companies and programs like eBay Motors’ Vehicle Protection Plan, which provides protection for cars purchased through eBay up to $50,000 for certain losses incurred as a result of certain types of fraud. If an online auto seller, other than eBay, promises eBay vehicle protection plan coverage, it’s a sure sign of a scam. These fraudulent sellers even have gone so far as to add a live chat feature where they answer victims’ questions and assure them that the deals are safe and covered by liability insurance up to $50,000.
While the likelihood of a scam may be evident to many, innocent purchasers are nevertheless falling victim to these false promises. Buyers should beware of sellers who refuse to meet in person or to allow inspection of the vehicle, transactions where the seller and vehicle are in different locations, and vehicles that are advertised for sale at prices well-below their book value.
If you or someone you know has fallen victim to this type of scam, please contact us to discuss your legal options.