The rise of online marketplaces, particularly platforms like Facebook Marketplace, has led to an alarming increase in scams targeting used-car sellers in South Africa. The South African Police Service (SAPS) is cautioning individuals about car deposit scams that exploit the trust of unsuspecting sellers.

Understanding Car Deposit Scams

A car deposit scam typically involves a scammer posing as a legitimate buyer who offers to pay a deposit to secure a vehicle before anyone else can purchase it. In many cases, the seller is led to believe they are dealing with a trustworthy buyer. The supposed buyer often visits for a test drive and may even request the keys, promising to complete the payment shortly.

Once the scammer has the car in their possession, they vanish, leaving the seller with only a fraction of the expected sale price. This type of fraud has become increasingly common, with numerous sellers falling victim to this deceptive practice.

Other Common Scams in the Car Market

According to Auto Pedigree, there are several other scams that used-car sellers should be aware of:

• Test Drive and Disappear: Scammers may take the vehicle for a test drive and simply drive away, never to return.
• Fake Deposit: A buyer might present counterfeit proof of payment for a deposit, allowing them to take the car home, while the actual funds never transfer.
• Overpayment Scheme: Scammers may send a fake cheque indicating they overpaid for the vehicle and request a refund for the excess amount, leaving the seller with no payment at all.
• After-Hours Theft: Some scammers will visit during daylight hours to assess a vehicle and its surroundings, only to return later to steal the car.
• Finder’s Fee Scam: Sellers may receive calls from individuals claiming to have multiple buyers interested in their car but requiring a “finder’s fee” to connect them. Once the fee is paid, the scammer disappears.

The Factors Behind the Increase in Scams

The proliferation of scams in the automotive sales space can be attributed to several factors. The ease of creating fake identities online, the growing number of buying and selling platforms, inadequate policing in this sector, and a large pool of desperate sellers all contribute to this troubling trend.

Protecting Yourself from Scams

To protect yourself when selling a used car, it is crucial to verify the identity of potential buyers and to be wary of any offers that seem too good to be true. Always wait for confirmed payments before handing over keys or the vehicle itself.

By staying informed and vigilant, sellers can better navigate the risks associated with selling used cars online and safeguard their hard-earned money.