Online Car-buying Scam Arrives In Time For The Holidays
Dec
28
Wednesday, December 28, 2016
Warning from British Columbia Regulator
The Vehicle Sales Authority of British Columbia (VSA) has warned both consumers and dealers of an online car-buying scam that arrived just in time for the holiday season. A fake website was created, using the name and address of a legitimate and licensed car dealership in British Columbia; however, it is a website for a phantom dealership that shows a fake roster of employees and consumer testimonials.
Unfortunately, this type of phony dealership scam is not a new phenomenon. In 2014, it was Garden City Trucks and Ken’s Kars Florida; and OMVIC has previously warned of many other phantom dealerships:
Protect Yourself
OMVIC strongly cautions Ontarians considering buying vehicles remotely, whether privately or from a dealer in another state or province, and offers the following tips:
- Beware of a price that is considerably lower than the average market price. If a price seems too good to be true, that’s a warning, not an opportunity.
- Travel to see the vehicle – don’t rely on pictures or a convincing website. If a buyer can’t travel to see the vehicle, hire an appraiser or mechanic to inspect the vehicle. They can ensure the vehicle actually exists and the seller is who they claim to be.
- Check with state or provincial regulators/authorities to ensure dealers are licensed.
- Purchase a vehicle history report for the vehicle – don’t simply rely on a report provided by the seller: they can be altered.
- Don’t wire money or provide a credit card number without first doing all homework.
- Don’t do it - consider that the savings are probably not worth the gamble, especially in light of the rapid proliferation of these scams.
Ontarians are only protected by OMVIC and Ontario’s consumer protection laws, and only have access to the Motor Vehicle Dealers Compensation Fund, when they buy from an OMVIC-Registered Dealer. If consumers buy privately, or outside the province, and something goes wrong they are basically on their own. It’s simply not worth the risk.
For more car-buying advice, visit www.omvic.ca.
Connect with OMVIC on social media!
Ontario Motor Vehicle Industry Council
@omvic_consumers
@omvic_official
Ontario Motor Vehicle Industry Council
www.omvic.ca
www.ontario.ca/page/consumer-protection-ontario
Copyright OMVIC ©2016