Used Car Auto Sales Fraud Proliferates -- the phantom escrow scam

If anything is too good to be true --- it generally is not true. Purchase a $25k automobile for $9800 -- not a chance.

Frauds have existed for many years but it seems that new technologies, greed, and just ingenuity on the part of fraudsters keep the public guessing and at risk. Furthermore, it may be that hard economic times create pressures on many to find better deals, cheaper prices, and to chase the unbelievable.

I was recently in the market for a replacement vehicle and I considered purchasing a 2007 Chevy Tahoe LTZ with 4x4 and loaded options. I searched the online sites and found several attractively priced automobiles -- with much lower than market pricing. The only catch, the seller would not allow inspection of the vehicle and wanted money to be sent to a 3rd party escrow agent -- using some reported "ebay motors" escrow process -- the only thing is that Ebay does not offer such service. So I decided to check further and found this interesting article highlighting the typical escrow scam; http://theautoprophet.blogspot.com/2008/10/new-ebay-motors-scam.html

Take for instance this current ad posted at http://atlanta.craigslist.org/wat/pts/1735726456.html that reports to sell a 2007 Chevy Tahoe LTZ with 70,000 miles for $9800. The seller presents a somewhat believable story that he is in the military and heading overseas in a few weeks and he has decided to sell his car quickly. Here is the problem however, if the seller were really in need of cash -- he should take the vehicle to Carmax immediately and get average trade-in and get $25k with ease. This should send warning bells off to anyone -- it is illogical, and foolish.

And now to protect you the public from this scam and scammer I relate the following particulars of this particular scam, and communications from the scam seller to me (a potential buyer). The seller represents himself as James Roberson -- and this is indeed a pun as James indeed seeks to Rob me and my sons of my hard earned monies.

# # #

James Roberson

Mr. Roberson writes,

"My time is limited and as much as I'd like to meet you and close the deal in person or sell it locally, this is impossible for me. That's why I have decided to sell the car over the Internet."

The sale will be managed through eBay under their Vehicle Purchase Protection program since they offer the highest rate of safety and reliability during online transactions. They act as a neutral third party. I will briefly describe the Vehicle Purchase Protection Program transaction steps so I can make things clear for both of us:

1. Buyer and seller reach an agreement (price and delivery conditions)
2. Buyer sends money to an eBay Motors Agent.
3. eBay Motors confirm to seller that the amount has been received.
4. Seller performs the required services (shipping, insurance).
5. Buyer accepts delivery and informs eBay Motors about the acceptance.
6. eBay Motors release the money to seller.

They will hold and insure your money until you will receive and test the car.

I need your full name and shipping address so I can reserve the car for you and register the transaction with eBay and they will contact you with all the instructions step by step on how to complete the transaction.
VIN 1GNFK13007R220368

Here is what I find wrong with the above --

(1) This is a typical automobile escrow scam;

(2) Ebay motors does not provide an escrow service;

(3) The money transfers from your hands before you inspect the goods or title transfers;

(4) The proposed 3rd party unnamed dealer is unknown

(5) The seller refused to allow site inspection of the vehicle before the sale;

(6) The seller refused to meet the buyer at a neutral location such as a branch of a national bank in his area where a notary public, bona fide cashiers checks could be made and presented.

(7) The seller could or would not provide an opportunity to validate the title prior to money transfer; if the above vehicle were totaled and had a salvage title, it would be possible that it was just a shell and not operational.

(8) The VIN number provided is likely a valid number, however the background in the photos is not consistent with the sellers area, and looks more like Asheville, NC rather than Pensacola FL or Atlanta where the ads were posted.

So let this be a lesson to you, and beware -- if a deal looks to good -- it is to good -- and run, not walk away from the temptation.

In closing, here is some sage advice from another on this same topic: http://www.carbuyingtips.com/used.htm

Do Not Buy That Used Car If.....
These are the top mistakes made by used car buyers. Don't let this happen to you!

• The 17 digit VIN#'s on the door, hood, engine, dashboard do not all match exactly
• You failed to have a mechanic check out the car on a lift
• You did not run the Experian AutoCheck Vehicle History Reports on the car's VIN# prior to purchasing
• The title still shows a lien holder with no "Lien Satisfied" stamp on it. It means they still owe the bank
• The AutoCheck report shows evidence of odometer rollback or title branded as junk, flooded, stolen, etc
• There is no VIN# on the dashboard, or it has been filed down or altered in any way
• The seller does not let you drive the car first
• The seller does not back up every verbal promise IN WRITING!
• The seller is NOT the owner of the car. It means they are a dealer's agent
• The seller has no written bill of sale identifying the car, VIN#, and stating the title has not been rebuilt, etc.
• The seller does not give you copies of anything you ask for
• It's parked along the side of the road with a For sale sign, unless you can verify they are the owner
• The seller has no drivers license, title, and registration for the car. Assume the car is stolen
• You have not verified the seller's name on their drivers license is the same person on the car title
• The seller refuses to let you take the car to a trusted mechanic for inspection
• The seller's asking price is suspiciously far below market value
• The seller makes you sign a power of attorney, or only wants cash
• The seller tells you to pay now, and he'll get you the title tomorrow, it's locked up at the bank