How the scam works:
(with explanatory video below) It is always cheaper to buy a car from an individual than it is to purchase one from a dealership or even a used car lot, but a new vehicle scam shows that both parties need to pay very close attention to the details of the sale. How does the scam work?
Watch the video below to see in action the Reselling Your Car Scam exposed:
Vehicles have been reported to have been sold by one individual without the new buyer’s signature on the pink slip. These new buyers then turn around and try to sell their newly purchased car claiming that it has modified parts, such as new engine, transmission, etc.
To go along with these claims, these individuals are providing falsified documents from a legitimate automotive shop showing purchase and work done on that particular vehicle. When in reality, these documents are just a Xerox of an old receipt with edited information so even though the mechanic is a real person working at a real auto shop, this car in question was never brought in for repairs.
By doing this people are able to buy and then resell a car for more than it is actually worth, claiming it has new parts under the hood. They are selling the vehicle with only the original owners name on the pink slip, leaving both the mechanic shop and the original owner labile for the false information.
In addition to the fake documents, a few white lies about how they are related to the person whose name is on the pink slip in all they need to get you to sign the slip and roll away in a car that might be in good condition but not as good as you thought it was in. Not only have you been scammed but you have no name for the person who sold you this car. Your paper trail goes to someone who claims they sold their car to someone else and a mechanic shop who has no record of the work supposedly done.
Of course, if the original owner of the car kept a good record then the scammer could easily be tracked down. Everything could then be resolved in a court of law, but it might take a lot of time to get it all sorted out, plus the hassle of having to prove the scam could be a difficult road as well.
How to avoid the Reselling Your Car scam:
For a buyer it would be very difficult to be able to spot something like this until you realize that these alleged new parts are not so new. But for the seller there are ways you can save us all from being scammed. When you sell your vehicle witness the buyer signing their name on the pink slip, and have them print their name on the bottom as well because signatures are not always very legible. This is not legally required, but if you meet your buyer at a bank to make the sale it only takes a moment to walk in and have the title notarized by an official.
How to report the Reselling Your Car scam scam:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
How to protect yourself more:
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