Most common used car scams and how to avoid them
Scams are on the rise, with UK motorists conned out of millions of pounds every year. We look at the latest scams and how you can avoid becoming a victim...
Whether you’re buying or selling, it’s all too easy to be tricked out of your money, your car or both. According to research by the Global Anti-Scam Alliance, there were 3.5 million recorded cases of fraud in 2024, resulting in £11.4 billion being stolen from consumers. While scams cover many aspects of life, a significant proportion of those fraudulent transactions involved used cars.
With high demand for used cars from drivers affected by the cost of living, there’s a growing demand for affordable used cars. Criminals are taking advantage of this by advertising fake or stolen cars at temptingly low prices or by offering to buy used cars for more than their asking prices.
Here, we round up some of the most common scams used by criminals, explain how they work and what you can do to avoid them. We also share the steps you should take if you’re unfortunate enough to be a victim of a used car scam.
Common scams when buying a used car:
Fake car sales websites
Some scammers lure unsuspecting used car buyers by setting up a website that looks like it belongs to a legitimate car dealer. These websites are filled with listings for cars being advertised for substantially less than their typical retail value – sometimes half the price they would usually cost. In many cases, the scammers will use images of a legitimate car being sold by a reputable dealer.
When buyers phone or email to get more information about a car on the website, the scammer will encourage them to pay for it as soon as possible in order to secure the deal. In many cases, the scammer will discourage or outright refuse to arrange a viewing at their ‘dealership’, instead promising to deliver the car to the buyer’s address. However, after the dealer has received the money, they become uncontactable.
How to avoid being scammed
The old adage ‘if a deal looks too good to be true, it probably is’ is appropriate here. If you encounter a used car being advertised at significantly less than the going rate, be wary and investigate the seller or retailer before making contact with them. Check for online reviews of the company to see whether any mention scams.
If you’re still unsure, ask the seller for an image of the V5C registration document as proof that they have the vehicle and are entitled to sell it. Only pay a small holding deposit up front and, whenever possible, make sure you see the car in person before you pay in full.
Ghost cars
Much like fake dealer websites, fraudsters create fake ads for cars for sale at rock-bottom prices and post them onto popular online retail and social media platforms. They typically use photos of genuine cars that are being advertised elsewhere online, and use fake addresses and profiles to make themselves seem legitimate.
When potential buyers get in touch, they’re typically given excuses for why they can’t inspect the car. Instead, the scammer will encourage them to pay online and deliver the car to the seller’s home address. Of course, this never happens, and the scammer stops responding once they receive the money.
In some cases, fraudsters will interact with buyers and even sometimes provide fake documents and information to encourage people to part with their cash.
How to avoid being scammed
If you’re interested in a car but the seller isn’t keen on you visiting them to see it, be suspicious. You should always insist on seeing a car before you pay for it. If you can’t, and as a last resort, ask the seller to make you a video of the car, which can be harder for scammers to fake – indeed some scammers will give up at this point. You can also check that the car’s registration number tallies with the details on the DVLA’s vehicle information service.
If you think you’ve spotted a fake ad on Facebook you can report it to the Facebook vehicle scam alerts group. It has more than 5500 members, all sharing information about vehicle scams they’ve spotted on the platform.
Curbstoning
Not everyone selling a used car is who they seem. Some shady used car dealers may pretend they’re private individuals when selling their car. This is typically done to avoid the strict regulations that used car dealers must adhere to which stipulate that the seller must be made aware of any known faults the vehicle has.
While the name ‘curbstoning’ comes from how dodgy dealers would typically sell their cars at the kerbside, many scammers now use social media platforms and online marketplaces to lure unsuspecting buyers. When a driver contacts the seller, they’ll typically be told that the car is in full working order and could even be sent fake or forged documents that give the impression the vehicle is in better condition than it really is.
How to avoid being scammed
Make sure you research the seller before you make contact with them. If you can, look up their phone number to see if it’s connected to any other used car listings. Check the car’s number plate on the DVLA’s vehicle information service, which will be able to tell you whether the car has previously been written off or stolen, among other details, such as previous MOT test results and mileage figures.
If you’re still unsure that the seller is a dealer in disguise, start your conversation with them by saying you’re interested in ‘the car’. Dealers who are selling more than one car will likely ask ‘which one?’. What’s more, always ask the seller to see the V5C registration document and make sure that the printed name matches theirs.
Car clocking
High-mileage examples of secondhand cars can be worth £1000s less than their low-mileage counterparts. As a result, scammers looking to maximise their profits may reduce the mileage displayed on the car’s odometer. Although it’s illegal to wind back a car’s mileage and sell it on for more than it’s worth, the act of altering the mileage is – surprisingly – perfectly legal. Car clockers can buy computer software for around £100 to do this in minutes.
One reason why clocking has become more prevalent in recent years is due to the high percentage of new cars bought on personal contract purchase (PCP) and car leasing deals; they come with annual mileage restrictions and typically stiff penalties for exceeding them.
How to avoid being scammed
The easiest way to spot a clocked car is to see if its condition fits with the mileage shown. If the odometer says 6000 miles but the car has worn tyres, saggy seats and other wear and tear, it could well be clocked. The best way to find out for sure is to check its service history. You can do this by looking up its old MOTs on the Government’s website, or by paying for a history check on it.
Read our in-depth guide to clocking for more advice on how to spot a clocked car.
Car cloning
Criminals sometimes put the numberplate from a legitimate car onto a stolen vehicle to stop it from being identified if it’s used for a robbery or other crime. They may also use this tactic to avoid paying clean air zone charges, such as the London ULEZ, parking fines and speeding tickets.
The criminals will search online for a car that’s the same make, model and colour as the one they want to hide and create copies of the legitimate car’s numberplates to fit to their car.
Another version of this involves the whole identity of a car being copied onto another one by altering the vehicle identification number (VIN) that’s stamped on various parts of the car; this is usually done to hide the identity of a stolen or written off car so it can be sold for a profit.
How to avoid being scammed
Enter the car’s supposed registration number into the DVLA’s vehicle information service and check that information such as the engine, trim level and previous recorded mileages match the vehicle you’re interested in. Ask the seller to show you the V5C registration document and check that the VIN on the document matches the one on the car, which is typically located near a bottom corner of the windscreen or in a front door jamb.
Again, a car history check can help here.
If you think your car has been cloned you should inform your local police authority and report the crime to Action Fraud. Once reported, it’s likely you’ll be stopped by the police when they see you driving it – but hopefully so will the driver of the cloned car.
Common scams when selling a car:
Overpaying buyers
When you advertise your car for sale, you might be contacted by a scammer who tells you that they are currently abroad but willing to pay the full asking price or even more to secure the deal. If you agree, it’s likely that they’ll ask you to contact a shipping agent on their behalf as they are not around to collect it.
Typically, they’ll tell you that they’ll send you payment to cover the car in full and a bit extra to cover supposed shipping or other spurious costs. This payment will be fraudulent. You will then be coerced into transferring legitimate money across to a third party, sometimes using a money transfer service. Usually, that will be the last you hear of the buyer or the middleman, but there’s a risk you could lose your car, too.
Such scams are often called ‘advance-feed frauds’ or known as the ‘419 scam’.
How to avoid being scammed
If you’re contacted by a buyer who is abroad, or someone who’s offering more than the asking price for your car, think carefully about accepting their offer. If you think the potential buyer is a criminal, don’t reply to their messages, but do advise the administrator of the website your car was advertised on.
‘Matchmaker’ buyers
When selling your car privately, you might be contacted by a scammer who claims to be speaking on behalf of a potential buyer. This could be an elderly friend or relative who isn’t on the social media platform or online marketplace you’re using, or someone in another part of the country.
Like many of the other scams you’ll see on this list, ‘matchmaker’ buyers will typically want to close the deal as quickly as possible. Once again, the scammer will typically request that the car is delivered via a shipping agent and pay via a banker’s draft or third-party payment app. However, these payments are never made and the ‘matchmaker’ disappears.
How to avoid being scammed
If someone contacts you and claims that they’re interested in buying a car on behalf of someone else, act with caution. Don’t respond if the buyer is seemingly rushing to complete the deal or insists on paying via a method that could easily be forged or faked.
Third-party payment scams
Scammers pretending to be customers interested in buying a car may request that they send you the money through a third-party payment app. As with other scams on this list, the scammer will typically seem keen on buying the car without viewing it and insist on using a particular third-party, person-to-person (P2P) service to send over the money – typically the full asking price.
The scammer will typically send a link to verify the transaction, which will lead to a fake version of the payment service’s website. When you try to log in, your account information will be shared with the scammer. However, even if the service they use is genuine, they could also claim that they accidentally overpaid for the car – demanding that you repay them, even if you haven’t received any money from them. Since third-party banking services are much more difficult to track, it’s also extremely unlikely that you’ll receive the scammer’s payment.
How to avoid being scammed
Never hand over your car or any paperwork until you have been paid the full agreed price. Only accept payment via CHAPS/BACS electronic payments or direct money transfers, such as Paypal, because it’s much easier to track payments via these services, and you can see the money as soon as it’s in your account.
Be wary of anyone who wants to pay for an expensive car (over £10,000) in cash, because they may be trying to launder money.
History check scams
Some scammers who are seemingly interested in buying a used car might ask you to run the registration number through a paid vehicle history checking service. These sites typically offer more detail than the free DVLA vehicle information service, including whether it has been imported, more comprehensive mileage recordings, or any changes of registration numbers or colour.
In these cases, the scammer will send a link to a particular site they want you to use and, typically, offer to repay you if the results show that the car is clean.
This link will lead to what looks to be the website of a legitimate company, with some sites said to feature positive user reviews on other sites. However, when you pay for a vehicle history check, you’ll get a bogus report and the scammer will receive your payment details.
How to avoid being scammed
Whether you’re buying on behalf of a seller or you’re interested in a used car yourself, only ever use a reputable company when getting a paid vehicle history check. Examples of respected providers include:
- AA
- Autotrader
- HPI Check
- RAC
If you’re unsure whether a website is legitimate, look it up on a domain checking service, such as whois.com, which will be able to tell you when it was first registered, the company that owns it and what country it’s based in.
If the potential buyer insists that they want to use a certain company – particularly one you’ve never heard of – don’t be afraid to walk away.
What to do if you’ve been scammed:
It’s vital that you contact Report Fraud by calling 0300 123 2040 or online through their website as soon as possible after discovering you have been scammed. If you sent money or your bank details to the scammer within the past 24 hours, you can also contact the police by calling 101.
When reporting a scam, remember to include the following details:
- How much money you paid for the car
- The method you used to pay
- The names and contact information of the people you made contact with
- The information you shared (eg: bank details)
Once the scam has been reported, you should contact your bank or credit card company. If you paid by credit card, debit card or bank transfer, you might be able to get your money back via chargeback. For the company to attempt to reverse the transaction, you’ll need to provide evidence that there was a breach of contract between you and the seller.
How to avoid being scammed when buying a car:
- Always enter the car’s numberplate into a history checking service to see details such as the engine size and trim level, previous MOT results, recorded mileages and whether it was previously written off or stolen
- If you’re still unsure whether a car is genuine, ask the seller to send a photo of the V5C registration document and videos looking around the vehicle
- If you’re interested in a car being sold by a dealership, research the company thoroughly and make sure the website is genuine
- Be wary of dealers and private sellers who refuse to let you see the car before deciding whether to buy it or are trying to hurry you into a decision
- When viewing the car, check that its overall condition matches the mileage stated on the odometer
- Make sure the VIN printed on the V5C registration document matches the car’s (typically located in a front door jamb or through the windscreen
How to avoid being scammed when selling a car:
- Never hand over a car or any of its documentation to a buyer until they have paid the agreed price in full
- Think carefully before responding to a potential buyer that is not currently living in the UK or says they are interested in buying the car on someone else’s behalf
- Be wary of buyers who are offering to pay more than the asking price for the car
- Ask the buyer to make a direct money transfer using a reputable platform or a CHAPS/BACS electronic payment
- Avoid accepting cash if your car is worth more than £10,000
- If you suspect the buyer is a criminal, report them to the administrator of the website the car is being advertised on
