Craigslist cars have become a very popular place to find & buy used cars. However, that doesn't mean everyone who posts a car for sale is being authentic.
There are many genuine people who are looking to make a sale, but there are also scammers out there looking to take your money.
Experts were asked to tell us which scams to avoid when purchasing a car from Craigslist.
Both used car sellers and internet sellers tend to be criticized. The same applies to those selling cars online.
Craigslist is a local site, but not everyone who posts a car for sale on the site acts like a neighbor. There are many genuine people who are looking for a one-to-one sale rather than trading in their car. However, scammers are out there looking to take your money or sell you a bad vehicle.
"Consumers have been victims of fraudulent auto transactions ever since Henry Ford opened shop," Donald E. Petersen told Business Insider. He is a Florida consumer protection lawyer who specializes in fraud cases.
Here are the top scams that people should avoid when buying a Craigslist car.
Craigslist cars have become a very popular place to find & buy used cars. However, that doesn't mean everyone who posts a car for sale is being authentic.
There are many genuine people who are looking to make a sale, but there are also scammers out there looking to take your money.
Experts were asked to tell us which scams to avoid when purchasing a car from Craigslist.
Both used car sellers and internet sellers tend to be criticized. The same applies to those selling cars online.
Craigslist is a local site, but not everyone who posts a car for sale on the site acts like a neighbor. There are many genuine people who are looking for a one-to-one sale rather than trading in their car. However, scammers are out there looking to take your money or sell you a bad vehicle.
"Consumers have been victims of fraudulent auto transactions ever since Henry Ford opened shop," Donald E. Petersen told Business Insider. He is a Florida consumer protection lawyer who specializes in fraud cases.
Here are the top scams that people should avoid when buying a Craigslist car.
Spoof pages
Craigslist listings should be inspected for cars that don't exist. Scammers will steal images from real listings and then create fake listings in dozens upon cities.
Avoid sellers who are reluctant to meet face-to-face and avoid buying cars you have never seen. Katherine Hutt, the director of communications at the Better Business Bureau, said that she has seen identical photos on numerous sites across the country. “Who knows where the original car is?” She said. "The scammer has used the same photo more than once with many victims."
The BBB suggests that you copy a photo from the listing and do a reverse image search on Google to determine if the car is real. You can be sure that the car is fake if it appears on multiple websites in different cities.
The same goes for the text. Scammers don't want to create a new listing for every vehicle. Enter a snippet of the Craigslist description in Google in quotes to see if there are any other listings that use the same words.
Craigslist listings should be inspected for cars that don't exist. Scammers will steal images from real listings and then create fake listings in dozens upon cities.
Avoid sellers who are reluctant to meet face-to-face and avoid buying cars you have never seen. Katherine Hutt, the director of communications at the Better Business Bureau, said that she has seen identical photos on numerous sites across the country. “Who knows where the original car is?” She said. "The scammer has used the same photo more than once with many victims."
The BBB suggests that you copy a photo from the listing and do a reverse image search on Google to determine if the car is real. You can be sure that the car is fake if it appears on multiple websites in different cities.
The same goes for the text. Scammers don't want to create a new listing for every vehicle. Enter a snippet of the Craigslist description in Google in quotes to see if there are any other listings that use the same words.
Curbstoning
Although it is legal to sell your car directly to someone, licensed people are those who sell more than one vehicle per year. The number varies from one state to the next. Individual sellers are called curbstone dealers, while those who don't get licensed are called curbstones.
They are likely trying to avoid the regulations that licensed dealers must follow. For example, they may promise money back if the car is a lemon. Petersen stated that curbstone dealers can be "often transient, or at the very least, difficult to find."
You and the authorities will have trouble tracking curbstone sellers if something goes wrong.
Although it is legal to sell your car directly to someone, licensed people are those who sell more than one vehicle per year. The number varies from one state to the next. Individual sellers are called curbstone dealers, while those who don't get licensed are called curbstones.
They are likely trying to avoid the regulations that licensed dealers must follow. For example, they may promise money back if the car is a lemon. Petersen stated that curbstone dealers can be "often transient, or at the very least, difficult to find."
You and the authorities will have trouble tracking curbstone sellers if something goes wrong.
Hidden damage
If you don't have a deep understanding of cars and mechanics, it is possible for your untrained eyes to miss the fact that expensive parts have been replaced by subpar ones or that there are no airbags.
If there are any problems with the vehicle, your mechanic can tell you. Ask the seller to have an independent auto expert look it over before you buy.
Petersen stated, "If the seller doesn't agree to take the car to a mechanic before buying, find another one."
If you don't have a deep understanding of cars and mechanics, it is possible for your untrained eyes to miss the fact that expensive parts have been replaced by subpar ones or that there are no airbags.
If there are any problems with the vehicle, your mechanic can tell you. Ask the seller to have an independent auto expert look it over before you buy.
Petersen stated, "If the seller doesn't agree to take the car to a mechanic before buying, find another one."
The sob story
Many salespeople will press buyers to make a sale. Craigslist is no exception. Scammers will make you feel guilty and encourage you to take a quick decision based upon a difficult-luck story.
They may claim that they are about to be deployed by military personnel, or that they have lost their job and will not be able to rent their car.
Hutt says that scammers will often use your sympathy to tell you a story about their hard luck. "So If they force you to pay quickly, due to an emergency - think before you say yes."
Many salespeople will press buyers to make a sale. Craigslist is no exception. Scammers will make you feel guilty and encourage you to take a quick decision based upon a difficult-luck story.
They may claim that they are about to be deployed by military personnel, or that they have lost their job and will not be able to rent their car.
Hutt says that scammers will often use your sympathy to tell you a story about their hard luck. "So If they force you to pay quickly, due to an emergency - think before you say yes."
The small-by-small payment
Used-car sale.
Getty Images TASS
Scammers will often post fake listings. They know that buyers are frightened if they ask them for $20,000 upfront. This is why they'll slowly get it in. They will often claim that the car is highly sought-after, and they won't be in a position to guarantee the lowest price without you making a down payment.
Hutt says that scammers will request money in smaller amounts than they would for all at once. "First, deposit, then a payment. Then shipping."
The next thing you know you have paid a lot of money for a car you will never drive.
Used-car sale.
Getty Images TASS
Scammers will often post fake listings. They know that buyers are frightened if they ask them for $20,000 upfront. This is why they'll slowly get it in. They will often claim that the car is highly sought-after, and they won't be in a position to guarantee the lowest price without you making a down payment.
Hutt says that scammers will request money in smaller amounts than they would for all at once. "First, deposit, then a payment. Then shipping."
The next thing you know you have paid a lot of money for a car you will never drive.
False security
These escrow sites protect you as a buyer. Instead of paying the seller directly, you pay an escrow site. If anything goes wrong, the third-party site will refund your money.
Fraudsters are well aware that online shoppers want protection such as that. They will trick you into believing that you are entering into a secure agreement by either spoofing an existing site or creating their own.
Do not trust escrow sites that sellers recommend. The BBB recommends that you research the site and only trust escrow services licensed by the state.
These escrow sites protect you as a buyer. Instead of paying the seller directly, you pay an escrow site. If anything goes wrong, the third-party site will refund your money.
Fraudsters are well aware that online shoppers want protection such as that. They will trick you into believing that you are entering into a secure agreement by either spoofing an existing site or creating their own.
Do not trust escrow sites that sellers recommend. The BBB recommends that you research the site and only trust escrow services licensed by the state.
Resetting the clock
One of the oldest tricks is to roll back the odometer. A car's mileage is an indicator of its wear and tear. This can be used to trick buyers into believing they have bought a brand new car.
According to the US Department of Transportation Federal Highway Administration average driver drives their car approximately 13,000 miles per year. If a car 5 years old has only 15,000, it could indicate that the mileage may not be accurate.
Some people drive less, such as teens and the elderly, but that's not the case for everyone. The BBB recommends that you compare the odometer readings with other features. On a vehicle that is supposedly rarely driven, you shouldn't find worn tires or a well-loved cabin.
One of the oldest tricks is to roll back the odometer. A car's mileage is an indicator of its wear and tear. This can be used to trick buyers into believing they have bought a brand new car.
According to the US Department of Transportation Federal Highway Administration average driver drives their car approximately 13,000 miles per year. If a car 5 years old has only 15,000, it could indicate that the mileage may not be accurate.
Some people drive less, such as teens and the elderly, but that's not the case for everyone. The BBB recommends that you compare the odometer readings with other features. On a vehicle that is supposedly rarely driven, you shouldn't find worn tires or a well-loved cabin.
A rewritten history
Even though the car appears in great condition, it could have suffered damage from flooding or an accident. The seller might be trying to conceal this. Do not trust the seller offering you a copy of the vehicle history report. They might have altered it to make the car more presentable.
Ask for your vehicle's VIN number and then do your own research through trusted third parties such as Carfax. But be aware that even these can be missing information, Petersen stated.
He said, "I recommend that consumers inspect the VIN at multiple locations on their vehicle to ensure consistency in identifying cars that have been through major reconstructions or theft."
Even though the car appears in great condition, it could have suffered damage from flooding or an accident. The seller might be trying to conceal this. Do not trust the seller offering you a copy of the vehicle history report. They might have altered it to make the car more presentable.
Ask for your vehicle's VIN number and then do your own research through trusted third parties such as Carfax. But be aware that even these can be missing information, Petersen stated.
He said, "I recommend that consumers inspect the VIN at multiple locations on their vehicle to ensure consistency in identifying cars that have been through major reconstructions or theft."
Too short a test ride
Petersen said, "The most common problem that consumers describe to me is that when they bought a used car through an advertisement on Craigslist and the seller gave them a test drive, which can be described as driving around the block in an area with very low-speed limits,"
He says that you will not be able to see how the vehicle drives or if it has been maintained properly until you have been in a more realistic driving situation. A seller who refuses to give you a longer test drive might have something to hide.
Petersen said, "The most common problem that consumers describe to me is that when they bought a used car through an advertisement on Craigslist and the seller gave them a test drive, which can be described as driving around the block in an area with very low-speed limits,"
He says that you will not be able to see how the vehicle drives or if it has been maintained properly until you have been in a more realistic driving situation. A seller who refuses to give you a longer test drive might have something to hide.