Buying or selling second-hand or new cars online has drastically changed the South African car industry’s landscape while benefiting motorists. Accompanying the advantages of transacting online are cyber criminals who will try to defraud motorists who are buying or selling cars. For your own safety and security, this article is to show you what techniques these criminals use. We also provide tips to help you avoid scams when buying a car online in South Africa.
How will you know when a scammer sells a car online?
To lure potential victims into a deal, scammers lower the price of the car they want to sell, using photographs of the same car shown legitimately online elsewhere. For obvious reasons, they avoid all human contact, and refuse to let you test drive the car. They may also ask for a massive up-front deposit of 50%.1
How does a scammer ‘buy’ your car?
After you have shipped your car to the buyer, you’ll soon find that their cheque bounces. Some scammers will also find you a buyer for a small fee while using fake emails. To extract more funds from you, they may also tell you that that there are extra costs required by a financial services provider.1
Outsmart scammers
Even though scammers think they can trick you with their devious techniques, you can still outsmart them by using the following tips. The power scammers rely on is secrecy, so they hate it when you try and expose them.1
Insist on holding a virtual meeting
By demanding to hold a virtual meeting via Google Meet or Microsoft Teams, the scammer will have to see you face-to-face (provided the video is on). Such a meeting would record the scammer’s face. You may also be able to detect any suspicious behaviour such as their avoidance to answer specific questions. But most scammers will refuse to engage in such close contact altogether.1
Is the car they are selling genuine?
The next vital step is to make sure that the vehicle in question does exist. So, request the VIN, with which you can validate the car’s history using a tool supplied by Autotrader.1
Cash is king
Whether buying or selling, never conduct any transaction without insisting on cash as the payment method. This approach clearly prevents scammers from using fake cheques.1
Insist on a test drive
There is nothing like physically sitting in a car before buying. The best way to confirm a car’s condition is to go through a checklist. Scammers don’t like this and would want to rush before you discover something wrong. So, take your time. If you are selling your car, insist you go with the potential buyer on a test drive while adding a tracker to your car beforehand for additional security.1
Use a secure place and Secura to exchange car or cash
Always arrange to meet in a public place, such as a mall parking area, before exchanging cash or a car. Secura supplies emergency security support when you need it. So, you can arrange for an armed response official from Secura to be on standby should things go wrong. All you need is to install their app on your cell phone.1
Disclaimer
This article aims to give you tips on how you can ensure that you arrive safely at your holiday destination during the festive season.1
As part of planning your holiday trip, make sure you have a good and reliable car insurance policy. Make sure that you understand all the exclusions of your policy. For instance, some insurers may not cover your car while driving on a dirt road. Contact us at PMD should you need more information or would like to learn more about our affordable car insurance car insurance products, world-class experience, and unique benefits such as fixed premiums* and a reduce-to-zero excess*. T’s and C’s apply. Enjoy peace of mind while you travel, knowing PMD is there to assist you when you need us most.
Before you buy a financial services product, consult a certified financial advisor for professional advice.
Don’t buy financial services products unless you’ve first consulted a certified financial advisor for professional advice.
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This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.
