Canadian Car Buyers Beware - Scams Still Out There
The Ontario Motor Vehicle Industry Council is warning Canadians that there are still a large number of scams operating out of the United States that are aimed at those buying automobiles online. One of the latest 'dealerships' to be implicated in fraudulent activity online is Husen Original Autos, which Council spokesperson Carey Smith identified as having no actual physical presence and none of the inventory of vehicles that it advertises on the Internet.
How do these scams work? Typically, a large number of used automobiles are listed on websites such as eBay, Craigslist, or Kijiji, with prices that are below market value. These 'too good to be true' deals sometimes come with elaborate or convincing explanations as to why they are going advertised so cheaply. Buyers are asked to send their cash via wire transfer, and are told that they will have the vehicle shipped to them - as it is almost never local and often located in the U.S. When the automobile doesn't appear, the scammers go silent, and buyers are not able to recuperate their money. Investigations into this type of cross-border fraud are complicated, time consuming, and difficult to initiate, which means that victims are rarely, if ever, made whole.
If a deal seems to good to be true - it probably is. That being said, buying a car online is often a great way to save significant cash, especially if the model is rare in your local area, or if you are shopping in the U.S. where a greater selection ensures lower prices. The Ontario Motor Vehicle Industry Council has posted the following recommendations to those looking to buy a car online, in order to help them avoid fraudsters and make sure everything is kept above-board:
• Beware of a price that is considerably lower than the average market price. If a price seems too good to be true it should be seen as 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 without first doing all homework.
