Beware The 'Hot' Car Scam

Not everyone buys a used car from a dealer. The Internet and newspaper classifieds make it easy for consumers to sell their used cars to other consumers, often for less than what it would cost at a dealer.

But there are potential pitfalls in these peer-to-peer sales. Dealers usually provide at least a minimal warranty period. And chances are, the car the dealer is selling you isn't stolen.

An arrest in Colorado has brought to light one of the problems of buying a used car “on the street.” Colorado Attorney General John Suthers has obtained indictments against two individuals he says were stealing cars and reselling them to unsuspecting consumers for cash.

According to the 17-count indictment, the scam works like this: the suspects would respond to a consumer advertising a car for sale. They would offer to buy it, but would pay for it with a counterfeit check. Sometimes, Suthers says, they would take the car for a “test drive” and simply drive away.

Next, the accused allegedly advertised the vehicle for sale online, at a low, cash price. The victims would learn they had been duped when they discovered the document they had been given was not a real car title and thus, they could not register the vehicle.

Drivers know to take precautions to prevent their cars from being stolen when they park them at night, but they should also remember that their vehicles can also be stolen during the sale process. Be suspicious of a buyer that seems just a little too eager.

To prevent becoming a victim of the “hot” car scam, don't be rushed into making a purchase. Also be wary of a “bargain” price that the seller insists must be paid in cash.

Source: http://www.consumeraffairs.com