Seven used car scam warning signs every buyer needs to know
Buying a used car should be exciting, but for a lot of people it’s becoming a minefield. Private seller listings are flooded with dodgy deals, fake dealers are setting up shop online, and too good to be true offers are multiplying like there’s no tomorrow.
With more buyers turning to online-only purchases, scammers have found new ways to exploit people looking for their next vehicle. The rise in used car scams has left countless buyers out of pocket, sometimes losing thousands to sophisticated cons.
Shir Amram, COO at Montana Capital Car Title Loans, a leading provider of secured title loans, has seen the aftermath of these scams firsthand through customers who’ve fallen victim to fraudulent sellers.
When people get scammed buying a car, the costs are not limited to only the upfront ones. They often end up needing emergency financing to get back on their feet, and that’s where we see the real impact of these cons.
Seven signs of a used car scam
To help you stay safe, and avoid buying a lemon, Amram shares the seven biggest red flags that should make any buyer walk away immediately.
1) The seller won’t let you see the car in person
This is the biggest red flag of all. Any legitimate seller should be happy to arrange a viewing, even if it takes some coordination. Scammers often claim the car is in a different location, they’re travelling, or they’ll only show photos.
If someone won’t let you physically inspect a car before buying, that’s your cue to run. Real sellers understand that buyers need to see what they’re getting. Scammers know that once you see the car – or realise it doesn’t exist – the deal falls apart.
2) The price is way below market value
We all love a bargain, but if a car is priced significantly below similar models, question why. Scammers use attractive prices to hook victims quickly before they have time to think or research properly.
Check the car’s value on sites like Kelley Blue Book or Edmunds. If the asking price is thousands below market rate without a legitimate reason, it’s likely a scam.
3) There’s no V5C logbook or an ncomplete service history
Legitimate sellers should have proper paperwork ready. The V5C logbook proves ownership, while service history shows the car has been maintained. Missing or incomplete documents are major warning signs.
Paperwork tells the story of a car. When sellers can’t provide basic documentation, they’re either hiding something or they don’t actually own the vehicle. Either way, it’s not worth the risk.
4) They’re rushing you to close the deal
Pressure tactics are a classic scam technique. Phrases like “I have other buyers interested” or “This offer expires today” are designed to stop you from thinking clearly or doing proper research.
Take your time. A genuine seller will give you space to make an informed decision. If someone is pushing you to pay immediately, step back and reconsider.
5) They ask you to pay now, collect later
Never pay for a car you haven’t collected. This scam involves taking your money with promises you can pick up the vehicle later, then disappearing completely.
The golden rule is simple: no car, no cash. Any seller asking for payment before you can drive away with the vehicle is running a con. Don’t fall for stories about needing deposits or securing the deal.
6) The engine warning lights are hidden by last-minute resets
Some sellers will reset the car’s computer system right before showing it to hide engine problems. Warning lights might not appear immediately after a reset, giving a false impression that the car is problem-free.
Ask when the car was last serviced and if any warning lights have appeared recently. An honest seller will be upfront about any issues.
7) Suspicious mileage (clocking)
Clocking – where the odometer is wound back to show fewer miles – is still common in used car scams. Look for signs like excessive wear on pedals and the steering wheel compared to the displayed mileage, or service records that don’t match the odometer reading.
Mileage fraud can knock thousands off a car’s real value. Always check that the wear and tear matches what the odometer shows. If something feels off, trust your instincts.
Don’t let excitement cloud your judgement
Used car scams are getting more sophisticated, but the warning signs remain the same. The biggest mistake buyers make is letting excitement cloud their judgment. When you find what seems like the perfect car at an amazing price, that’s exactly when you need to slow down and check everything twice.
I’ve seen too many people get burned by these scams. In addition to the money they lose upfront, they often also end up needing emergency financing to get back on their feet. Before you hand over any cash, make sure you can see the car in person, verify all the paperwork, and never let anyone pressure you into a quick decision.
Remember, if a deal seems too good to be true, it usually is. Trust your gut – if something feels wrong, walk away.
Montana Capital Car Title Loans is a leading provider of secured title loans, helping individuals access fast cash by leveraging their vehicle’s equity. Established in 2007, the company has served over 300,000 customers across 46 states in the U.S. Known for its flexible lending criteria, Montana Capital offers loan amounts ranging from $500 to $50,000 even to those with poor or no credit.
