Online car shopping has made it possible to locate a vehicle hundreds or even thousands of miles away. Unfortunately, it has also made it possible for a criminal sitting who-knows-where to impersonate a legitimate dealership and sell you a vehicle that does not exist.
The Federal Trade Commission is warning consumers about increasingly sophisticated fake dealership websites designed to collect upfront payments. These are not necessarily crude pages filled with misspelled words and blurry photographs. According to the FTC’s consumer alert, scammers may use artificial intelligence to clone a real dealer’s website, copying its logos, vehicle listings, photographs and other details. Some sites even include phony customer testimonials.
The objective is to make shoppers believe they are dealing with an established dealership. The fake site may explain the buying process in convincing detail, promise shipping and offer a generous return policy. Everything appears reassuring until the buyer sends the money and eventually contacts the real dealership, which has no record of the vehicle, transaction or payment.
Rare muscle cars, classics and other hard-to-find vehicles make especially effective bait. Buyers searching for something unusual are accustomed to shopping outside their local area, and the excitement of finally finding the right car can cause common sense to spend a few minutes in the trunk.
The first warning sign is a price that seems substantially better than anything else in the market. A bargain is not automatically fraudulent, but a rare vehicle advertised thousands of dollars below comparable examples deserves considerably more investigation—not a faster wire transfer.
Begin by searching the dealership’s name along with words such as “scam,” “complaint” or “review,” as the FTC recommends. However, positive reviews alone do not prove that the website is genuine. If criminals are impersonating a real dealership, the reviews you find may belong to the legitimate business rather than the people operating the counterfeit site.
Verify the dealership independently. Do not rely solely on the address, telephone number or email appearing in the advertisement. Find the dealership through the manufacturer’s official dealer locator or another trusted source, call the independently obtained number and ask an employee to confirm that the vehicle is physically in stock. Request the vehicle identification number and compare it with the VIN appearing in photographs, documents and any available vehicle-history report.
Whenever possible, see the vehicle and dealership in person before paying. If distance makes that impractical, hire an independent mobile inspection service to examine the car at the dealership. The inspector should verify the VIN, condition, mileage and physical location of the vehicle. The FTC says a seller who refuses to allow an in-person visit or independent inspection is giving you a strong reason to take your business elsewhere.
Payment demands can expose the scam as well. The FTC specifically warns buyers to walk away when a supposed dealership insists on upfront payment by wire transfer only. Before sending any money, confirm that the recipient’s business name matches the dealership and speak directly with a verified dealership employee. Never allow claims that another buyer is waiting or that the vehicle must be paid for immediately to rush the process.
Anyone who encounters a suspected fake dealership website should save the advertisement, emails, payment instructions, telephone numbers and website address, then report the incident at ReportFraud.ftc.gov.
Buying a vehicle remotely can be perfectly legitimate, but the verification must be more thorough precisely because the distance makes deception easier. A professional-looking website proves only that someone knows how to build a professional-looking website. Before sending thousands of dollars, make certain the dealership is real, the vehicle exists and the person receiving your money actually owns it.