Watch out for Internet used car scams

Consumers who find a “great deal” on a repossessed car on the Internet and wire money to a “reputable dealer” have been finding themselves coming up with nothing.

Fraudulent websites claim to sell repossessed cars at prices well below market rates. Buyers are instructed to wire a deposit – as much as $5,000.

When consumers go to the dealership to pick up the car or call to arrange for delivery, they find they’ve been scammed.

The Better Business Bureau has heard from consumers across the country who thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships.

Websites have posed as dealers in Tennessee, Colorado, Florida, Georgia, Michigan, New Mexico, and Texas. The websites are often taken down after a few days only to crop up shortly under a different URL address and under another legitimate dealer, reports the BBB.

The BBB recommends that car consumers 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.

If you have been the victim of a fraudulent auto dealer online, notify your BBB at www.bbb.org, your state attorney general’s office, and the Internet Crime Center at www.ic3.gov to file a complaint.