Scammers are creating Web sites with the names of real auto dealers and offering too-good-to-be-true deals on repossessed cars, according to the Better Business Bureau. People across the country already have lost thousands of dollars by buying nonexistent cars, according to BBB.
For example, Memphis dealership America Auto Sales (www.memphisautoworld.com) received more than 1,000 calls from car shoppers who shopped on a phony site (www.americaautosales.com) thinking it was Memphis dealership's site, according to BBB. Buyers were told to wire a deposit to an individual -- rather than the company -- and pay the balance when the car was delivered. The phony site claimed that this payment method would help the company avoid taxes legally. After paying, several victims called America Auto Sales to arrange delivery of their cars -- and some even showed up at the dealership.
The BBB says similar Web sites have posed as dealerships in Colorado, Florida, Georgia, Michigan, New Mexico and Texas. To protect yourself when shopping online for cars, follow these tips:
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Be suspicious of ridiculously low offers. Before buying a car, check Kelley Blue Book to find out what its market value is.
Verify that the vehicle exists. Start by getting a phone number from the seller and calling him or her (don't rely solely on e-mail communication). Ask the seller to send you a copy of the vehicle registration and the VIN, which you can use to get a vehicle history report from CARFAX.
Mind your money and personal information. When paying, don't send a personal check or wire money (a request to do so can be a scam). Do not give out your Social Security number.
-
Stock Market Today: Dow Adds 654 Points as 3M Stock Explodes HigherIt was a risk-on day for stocks thanks to an upbeat inflation reading and impressive earnings from 3M and Deckers.
-
3M Leads Dow Stocks After Massive Earnings Beat3M stock is headed toward its best day ever after the industrial conglomerate's impressive earnings report. Here's what you need to know.
-
Social Media Scams Cost Consumers $2.7B, Study ShowsScams related to online shopping, investment schemes and romance top the FTC's social media list this year.
-
5 Ways to Save Money on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
Tired of Scam Text Messages? The FCC Cracks DownNew scam text message rules from the FCC require carriers to block texts from bad numbers and protect consumers.
-
Tax Scam: IRS Warns Taxpayers Against Filing False W-2 InfoScams A new tax scam on social media advises lying on your W-2 to falsely claim credits and bigger refunds.
-
Beware Fake Disney Plus Emails That Steal Your Bank InformationFake Disney Plus billing messages enable scammers to access your bank account and drain your funds.
-
Watch Out for Flood-Damaged Cars from Hurricane IanBuying & Leasing a Car In the wake of Hurricane Ian, more flood-damaged cars may hit the market. Car prices may rise further because of increased demand as well.
-
The Best Way to Protect a Parent from ScammersScams Adult children worried about their parents’ ability to spot and avoid fraud have several options to help protect them, including a durable power of attorney, a guardianship and a revocable trust. Which might be best for your family?
