Criminals are coming up with increasingly devious ways of parting used car buyers with their money.
Sadly, more and more South Africans are falling prey to these fraudsters, losing millions of rands in the process.
Darryl Jacobson, managing director of Burchmore’s car auctions warns that buyers need to be extremely cautious when purchasing a used car.
Criminals are coming up with increasingly devious ways of parting used car buyers with their money.
Sadly, more and more South Africans are falling prey to these fraudsters, losing millions of rands in the process.
Darryl Jacobson, managing director of Burchmore’s car auctions warns that buyers need to be extremely cautious when purchasing a used car.
“While most used car buying experiences are good ones, we are hearing of new scams daily,” he reveals. “Generally they have one feature in common: the buyer is being offered an unbelievably good deal.”
Jacobson says that these too-good-to-be-true deals need to be scrutinised over and over again. “If you’re about to buy a used car at a ridiculously low price, ask yourself why this is happening to you.
Why would you alone be privy to such an exceptionally good deal? Why are you so lucky? Chances are excellent that you’re about to be scammed,” he warns.
The fraudsters are becoming increasingly creative, and they may even pose as an agent or staff member at a used car retailer or bank.
Be warned-these are professional crooks and many buyers end up losing thousands of rands, and never take delivery of their cars.
The first step is to select your vehicle supplier with extreme caution. “If you are dealing with an individual, and not a company, be extremely cautious. Be very wary of any private-to-private sales.
The risks are huge: hijackings, false checks, stolen cars… the list of potential problems is huge. It is much better to deal with a company; that way, you have some recourse should anything go wrong,” Jacobson explains .
Secondly, verify the source that you are buying the car from. “You need to consider all sorts of different factors.
How long has the company been in business? Is it a member of the Retail Motor Industry Organisation of South Africa (RMI)?
Is it part of a listed company? How much stock does the company have on its floor? Does it have a good reputation? How many people does it employ? Does it look professional and above board?”
Then make sure you only deal with salespeople who are clearly employees of large companies. The vehicle supplier should present you with all the necessary paperwork, including an offer to purchase, the vehicle’s registration papers and (if available) a service book.
When applying for finance, only deal with the professionals in the finance and insurance office at the used car retailer. Above all, Jacobson says that buyers should take their time.
“There is no need to rush into a decision; a used car purchase is an important decision,” he notes.
Never ignore your gut feeling.
“If a deal feels fishy in any way, rather walk away,” he advises. Finally, avoid sensational “once in a lifetime” deals. “The fraudsters realise that people will only take chances when the price is too good to say no. If the deal looks too good to be true, walk away.
