“All That Glistens, Is Not Gold! .”

Introduction:

Fake car dealers are increasingly becoming a problem for consumers and the motor trade industry.

Car Dealer Magazine has been investigating these scams since September 2022 and has identified 11 fake car dealerships so far.

The websites are designed to look professional and credible with images of cars for sale at suspiciously low prices, contact details, and fake reviews.

Customers are enticed to visit the website by adverts on Facebook Marketplace and other similar websites. After paying a deposit or the full amount for the car via bank transfer, the purchased vehicle never arrives, and the con artists steal the money.

The gangs behind these scams are thought to be based abroad but often pretend to be located in Scotland. They target London and Home Counties buyers who are less likely to want to see the car first, making it easier to execute the con.

Car Dealer Magazine's investigations have identified several tell-tale signs of a fake car dealership. For instance, checking the name of the dealership on Companies House is not a reliable way of determining its legitimacy since these fake car dealers have cloned existing businesses.

One of the best ways to protect oneself is to do due diligence by checking out the car dealership on review websites like Auto Trader and Google. Legitimate car dealers should have plenty of reviews from genuine buyers. Paying with a credit card offers protection to customers, and paying the deposit on a credit card can also provide some protection.

If customers spot a fake car dealership, they should contact the police, report the fraud to the website hosting company, and report the fake adverts to the social media platform. Victims of these scams should contact their bank or credit card issuer for support, and once they have dealt with that, they should use social media to warn others about these scams.

Although Car Dealer Magazine has reported these scams to the police, the perpetrators are often based in other countries and challenging to track down. Consumers must be cautious and vigilant in their dealings with car dealerships and should be prepared to walk away if something feels dodgy. The motor trade industry must also do more to warn the public of these scams and promote legitimate car dealerships.

You can read the full in depth article here.