Monday, July 19, 2010

BBB Warns Car Shoppers-Online Dealer Scam

BBU-Better Business Bureau warns car shoppers to be wary of websites offering too-good-to-be-true deals on repossessed cars. BBB has heard the news from people across the country who thought they were buying from a good reputable dealer online but were really sending money to scammers posing as already established community dealerships.

Stephen A. Cox, President and CEO of the Council of Better Business Bureaus said, car shoppers will think that the person buying a car from a reputable business, because scammers essentially steal the identity and good name of real auto dealers. The truth is, they’re being sold a bill of goods by a coordinated and agile.

Recently, one Memphis auto dealer received more than 1,000 calls from consumers across the country who had shopped for a new car on thoughts that it was the website of the Memphis dealership. The phony website used the name, address and contact information of the real dealer.

Victim paid the deposit and called the real dealership to arrange delivery of their car. The websites are often taken down after a few days only to crop up shortly later under a different URL address.

BBB recommends that car shoppers look for the following red flags when shopping for a car online:

  • The prices are too good to be true.
  • The dealer only communicates through chat or mail (never by phone).
  • The dealer only accepts expense by money wire transfer.

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