The most common used car scams
- The car that doesn’t exist. Photos are copied from another ad. The “seller” is interstate, overseas or on a work trip and asks for a deposit to hold the car or pay for transport. Once you pay, they disappear.
- Fake escrow or transport company. The seller suggests a “secure payment service” or shipping company that holds your money until delivery. The website is fake and run by the scammer.
- Finance still owing. The seller still owes money on a loan secured against the car. If it isn’t paid off, the lender may be able to repossess the car from you. How to check for finance owing.
- Stolen or re-identified cars. A stolen car is given the VIN or plates of a similar legitimate car, so the paperwork looks fine at first glance. How to check a car isn’t stolen.
- Hidden write-offs. A repaired write-off is listed at near full price with no mention of its history. Repairable vs statutory write-offs.
- Wound-back odometers. Fewer kilometres on the dash means a higher price. How odometer tampering is detected.
- Dealers posing as private sellers. Some unlicensed traders list several cars as “private sales” to avoid the obligations a licensed dealer has. A seller with many cars for sale, or one who isn’t the name on the registration, is a warning sign.
Warning signs in the listing or messages
- The price is well below similar cars, with no clear reason.
- The seller can’t or won’t let you see the car in person before you pay.
- They push you to pay a deposit quickly because “lots of people are interested”.
- They want payment by gift cards, cryptocurrency, an overseas account or a payment service you’ve never heard of.
- They won’t give you the VIN, or the VIN in the photos doesn’t match the one they send.
- The profile is brand new, has no history, or the name doesn’t match the registration papers.
- They want to move the conversation off the platform straight away, for example to email or WhatsApp.
Never pay a deposit for a car you haven’t seen. A genuine private seller will let you inspect the car and check its papers before any money changes hands.
How to buy safely, step by step
- Ask for the VIN and rego number before you travel. A genuine seller won’t mind. Use them to run a free rego check and a PPSR check.
- Meet at the seller’s home, in daylight, so you know where the car lives and that they have a real connection to it. Bring someone with you.
- Match the VIN on the car (windscreen, door pillar, build plate) to the registration papers and to your PPSR result. Where to find the VIN.
- Check the seller’s ID against the name and address on the registration papers.
- Inspect and test drive the car, or book a pre-purchase inspection. Our used car buying checklist covers what to look for.
- Run a fresh PPSR check on the day you pay. Finance can be registered at any time, so an old check can be out of date.
- Pay by bank transfer into an account in the seller’s name, and get a signed receipt with the VIN, rego, price, date and both parties’ details.
- Lodge the transfer with your state road authority within the deadline. See buying a used car by state.
Selling your car? Watch for fake payment emails
Scammers also target sellers. A common trick is a fake email that looks like it’s from a bank or payment service, saying the buyer has paid but the money is “on hold” until you pay a fee. Real bank transfers and PayID payments don’t require the seller to pay anything to receive them. Always check your own banking app, not an email, before you hand over the keys.
If you’ve been scammed
- Contact your bank straight away. The sooner you report it, the better the chance of stopping or recovering the payment.
- Report the listing to Facebook Marketplace or Gumtree so it can be removed.
- Report it to Scamwatch, and to the police if you’ve lost money.