The Better Business Bureau has a warning for those shopping for a new vehicle; beware of online Web sites offering deep deals.
Some prices being quoted on repossessed cars online are simply too good to be true, they say.
People from across the country have contacted the BBB about this issue. They thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships."Because scammers essentially steal the identity and good name of real auto dealers, car shoppers will think that they're buying a car from a reputable business," said Jim Hegarty, BBB president and CEO. "The truth is, they're being sold a bill of goods by a coordinated, agile and in all likelihood overseas outfit of scammers."One Memphis auto dealer, America Auto Sales, received more than 1,000 calls from across the country from consumers who had shopped for a new car on www.americautosales.com, thinking that it was the dealership's Web site. The Web site was not that of the Memphis auto dealer, but used the same name, address and contact information.The phony Web site quoted prices on cars way below market value.Buyers wired a deposit, as much as $5,000 to an individual instead of the company, which, according to the Web site was to "help avoid taxes legally." The balances were to be paid upon delivery at the consumer's address within five days.After wiring the deposit, victims called the real dealership to arrange delivery of their car. Some customers even showed up at the lot to pick up the cars they had "bought" on the bogus site.Similar Web sites have ran the same type of scam in Colorado, Florida, Georgia, Michigan, New Mexico and Texas.The sites are often taken down after a few days, but pop back up with a different URL address and name of another legitimate dealer.The 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 e-mail, never by phone.The dealer only accepts payment by money wire transfer.
Some prices being quoted on repossessed cars online are simply too good to be true, they say.
People from across the country have contacted the BBB about this issue. They thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships."Because scammers essentially steal the identity and good name of real auto dealers, car shoppers will think that they're buying a car from a reputable business," said Jim Hegarty, BBB president and CEO. "The truth is, they're being sold a bill of goods by a coordinated, agile and in all likelihood overseas outfit of scammers."One Memphis auto dealer, America Auto Sales, received more than 1,000 calls from across the country from consumers who had shopped for a new car on www.americautosales.com, thinking that it was the dealership's Web site. The Web site was not that of the Memphis auto dealer, but used the same name, address and contact information.The phony Web site quoted prices on cars way below market value.Buyers wired a deposit, as much as $5,000 to an individual instead of the company, which, according to the Web site was to "help avoid taxes legally." The balances were to be paid upon delivery at the consumer's address within five days.After wiring the deposit, victims called the real dealership to arrange delivery of their car. Some customers even showed up at the lot to pick up the cars they had "bought" on the bogus site.Similar Web sites have ran the same type of scam in Colorado, Florida, Georgia, Michigan, New Mexico and Texas.The sites are often taken down after a few days, but pop back up with a different URL address and name of another legitimate dealer.The 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 e-mail, never by phone.The dealer only accepts payment by money wire transfer.
