BBB Issues Warning on Surge of Classic Car Dealer Scams
The Better Business Bureau (BBB) of Central and South Alabama has issued a warning to consumers following a significant increase in reports of fraudulent classic car and heavy equipment websites. These scams have resulted in substantial financial losses for buyers, particularly in Alabama, with fraudulent car dealer schemes originating from various states.
Recent Scam Examples:
- Crystal Dealership, Miami, FL: A consumer lost $25,000 after wiring money to Crystal Dealership, using the email support@crystaldealership.com and phone number (305) 600-0850. Despite signing a contract, the vehicle was never delivered, and communication ceased once the payment was made.
- JJ Auto Sales, Salt Lake City, UT: A consumer was defrauded of $36,000 by JJ Auto Sales. The scammer, using sales@jjautosalesinc.com and phone number 1-385-327-7424, blocked the buyer’s number after the agreed delivery date passed with no vehicle delivered.
- Faith Auto Brokers, Lebanon, MO: A consumer lost $27,000 to Faith Auto Brokers. After signing documents and wiring money, the scammer, using sales@faithautobrokers.com and phone number (417) 685-1522, ceased communication and failed to deliver the vehicle.
Scam Characteristics:
These scams often involve fake websites that closely mimic legitimate classic car dealerships, using stolen photos, contact details, and Vehicle Identification Numbers (VIN) from genuine sellers.
Key Findings:
- Reports of online vehicle dealer scams to the BBB Scam Tracker surged in 2023.
- Scammers frequently create fake websites using information from legitimate sellers.
- Classic car buyers are targeted with offers of rare cars at too-good-to-be-true prices.
- Incidents of fake vehicle history reports have increased over the past three years.
- Nearly 700 BBB Scam Tracker reports on fraudulent vehicle sales, escrow scams, and fake vehicle reports.
- The average loss in fraudulent vehicle sale and escrow scams is $12,600.
- Approximately $45 million lost in fake vehicle report scams, with Alabama consumers losing an estimated $6 million.
BBB Tips for Buying a Vehicle Online:
- Inspect the Vehicle: If possible, inspect the vehicle in person or send a trusted individual.
- Beware of Unrealistic Prices: Deals that seem too good to be true likely are.
- Avoid Electronic Transfers: Use a cashier’s check in person for payments.
- Opt for Pickup: Arrange to pick up the vehicle in person and pay at the time of delivery.
- Resist High-Pressure Sales: Be cautious of sellers pushing for quick decisions.
- Use Approved VIN Lookup Sites: Verify the vehicle’s history through reputable VIN lookup websites.
For more information, visit BBB.org to check out a business or register a complaint, use BBB Scam Tracker to report a scam, and explore bbb.org/scamstudies for detailed scam reports.
For media inquiries or interviews, please contact Carl Bates, CEO of BBB Serving Central and South Alabama, at cbates@csal.bbb.org or (205) 558-2219. For Mobile, Baldwin Counties, or Montgomery, reach out to Monde Donaldson, Vice President of BBB CSAL Education, at (251) 300-3388 or mdonaldson@csal.bbb.org.
For further details on recent scam activities and how to protect yourself, visit the following links:
