BBB warns Alabamians of classic car dealer scams

GCM Staff Report
Posted 7/11/24

The Better Business Bureau (BBB) of Central and South Alabama is alerting consumers about a rise in fraudulent websites posing as classic car and heavy equipment dealers.

These scams are leading …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Get the gift of local news. All subscriptions 50% off for a limited time!

You can cancel anytime.
 

Please log in to continue

Log in

BBB warns Alabamians of classic car dealer scams

Posted

The Better Business Bureau (BBB) of Central and South Alabama is alerting consumers about a rise in fraudulent websites posing as classic car and heavy equipment dealers.

These scams are leading to significant financial losses, with several Alabamians falling victim to fake car dealer operations originating from other states.

RECENT SCAM CASES:

  • Crystal Dealership, Miami, Florida: A consumer reported losing $25,000 after wiring money for a vehicle that was never delivered. Communication with the scammer ceased after the transfer, despite the vehicle continuing to be listed online. Contact information included the email support@crystaldealership.com and phone number (305) 600-0850.
  • JJ Auto Sales, Salt Lake City, Utah: A buyer was defrauded of $36,000 under the pretense of purchasing a vehicle. The scammer used sales@jjautosalesinc.com and phone number 1-385-327-7424. The delivery date passed without the vehicle's arrival, and the consumer's phone number was subsequently blocked.
  • Faith Auto Brokers, Lebanon, Missouri: A victim reported losing $27,000 to this fraudulent dealership. After signing documents and wiring money, all communication ceased. The contact details used by the scammer were sales@faithautobrokers.com and phone number (417) 685-1522.

These scams typically involve fake websites that mimic legitimate classic car dealerships, using stolen photos, contact information and vehicle identification numbers (VIN) to deceive buyers.

KEY FINDINGS:

  • Reports of online vehicle dealer scams to BBB Scam Tracker surged in 2023.
  • Scammers increasingly create fake websites, using information stolen from legitimate sellers.
  • Classic car buyers are targeted with offers of rare vehicles at prices that seem too good to be true.
  • The use of fake vehicle history reports has increased over the past three years.
  • Nearly 700 reports of fraudulent vehicle sales, escrow scams, and fake vehicle reports have been submitted to the BBB Scam Tracker.
  • The average loss in fraudulent vehicle sale and escrow scams is $12,600.
  • Estimated losses from fake vehicle report scams total $45 million, with Alabama consumers alone losing around $6 million.

BBB TIPS FOR BUYING A VEHICLE ONLINE:

Inspect the vehicle in person: Whenever possible, view the vehicle yourself or send a trusted representative.

Be skeptical of too-good-to-be-true prices: Deals that seem overly attractive are likely scams.

Avoid electronic money transfers: Prefer in-person payment with a cashier's check.

Opt for vehicle pickup: Arrange to pick up the vehicle and pay in person, using a cashier's check at the time of delivery.

Beware of high-pressure sales tactics: Be cautious of sellers urging quick decisions.

Use approved VIN lookup websites: Verify the vehicle's history through reliable sources.

For more information or to report a scam, visit BBB.org and BBB Scam Tracker. Additional details about this and other scams can be found at bbb.org/scamstudies.