A recent report by the Vehicle Safe Trading Advisory Group (VSTAG) reveals that used car buyers in the UK are facing an increased risk of falling victim to scams and financial fraud due to the ongoing cost of living crisis. As the cost of living continues to rise, many buyers are attempting to save money by seeking out seemingly unbeatable deals on used cars. However, this has opened the door to a surge in fake car dealers who advertise vehicles at prices far below their market value, enticing unsuspecting buyers to part with their hard-earned cash. Car Dealer Magazine has been closely following this concerning trend, shedding light on the growing number of scam car dealers since October.

The rise in fraudulent sellers has prompted hundreds of consumers to reach out to Car Dealer, sharing their stories of being scammed by criminals who tarnish the reputation of legitimate car dealers. In response to this alarming situation, VSTAG conducted a survey of over 2,000 car buyers, revealing some worrying trends. Almost half of the respondents (47%) admitted to being willing to send money directly from their bank accounts in order to secure what they believed to be a good deal.

VSTAG highlights a common tactic employed by fraudulent sellers, which is to persuade buyers to transfer money before they even get a chance to see the vehicle. To mitigate the risks associated with such transactions, VSTAG recommends using a credit card for payment whenever possible, as it offers an added layer of protection. If a dispute or issue arises with the car, consumers can seek assistance from their credit card company. However, the survey indicates that only 37% of buyers would carry out a history check on the vehicle, a recommended practice to avoid purchasing a lemon.

The report also uncovers the impact of financial pressures on used car buyers. Over 10% of respondents admitted that, due to growing financial constraints, they would only consider purchasing a used car if they perceived it to be a "good deal." This mindset leaves buyers more susceptible to scams orchestrated by sellers advertising hoax cars at unrealistically low prices. Moreover, 32% of respondents expressed their reluctance to pay extra for a car from a recognised dealer, opting instead for the cheapest option, even if it meant buying from an unknown seller.

Tony Neate, the CEO of Get Safe Online, emphasises the significance of physically inspecting the vehicle before making any payments. He advises buyers to never part with any money before seeing the car, as being asked for payment before even confirming the car's existence raises a significant red flag. Neate stresses that, after one's home, a car is likely the largest single purchase made, necessitating vigilance and adherence to basic safety measures.

VSTAG's recommendations align closely with the advice already available on Car Dealer's website. Their guidance includes cautioning against sending money for unseen cars, urging buyers to view the vehicle before making full payments, suggesting only paying a deposit amount they are willing to lose, checking market prices to ensure they align with the vehicle's value, taking the car for a test drive, and conducting comprehensive used car history checks. Car Dealer also recommends purchasing from reputable used car dealers who have extensive reviews from previous buyers, either on Google or other reliable websites. The report further advises buyers not to solely rely on business information such as company numbers, as legitimate car dealers may have fallen victim to cloning.

David Callington, HSBC UK's Head of Fraud, adds his perspective to the issue, noting that scammers employ various techniques to deceive buyers and steal their money. He emphasises the importance of conducting checks before purchasing a vehicle to verify its existence, roadworthiness, and any potential outstanding finance. Callington also advises buyers to remain cautious if sellers insist on bank transfers or demand payment before allowing a physical inspection, reminding buyers that offers that seem too good to be true often are.

The research conducted by VSTAG also reveals that young people aged between 18 and 24, as well as residents of London, are the most vulnerable to falling victim to used car buying scams. 15% of Londoners and 13% of young people surveyed reported being victims of vehicle fraud. VSTAG, established in 2006 by Auto Trader, works in collaboration with law enforcement organisations, consumer advisory bodies, and leading online platforms such as Gumtree and Motors.co.uk to combat fraud in the automotive industry.

In conclusion, as the cost of living crisis continues to impact consumers, used car buyers in the UK are increasingly at risk of being scammed and falling victim to financial fraud. The surge in fake car dealers advertising vehicles at unrealistically low prices has led to a significant number of individuals losing money. VSTAG's survey highlights concerning trends among buyers, including their willingness to send money without physically seeing the car and their neglect of essential practices such as history checks. By following the recommended safety measures, buyers can protect themselves from scams and make informed purchasing decisions in the used car market.

You can read the original advert on the car dealer magazine website.