There's something exciting about buying or selling a car. It's a fresh start or cash in the bank. Maybe you've got an upgrade on the horizon.
But scammers know when people are distracted. That's when they strike.
A car scam is when someone pretends to be a genuine buyer or seller but is really just trying to take your money or personal details. Sometimes both. It could be a fake ad, a dodgy payment, or a buyer who never shows up. Whatever the approach, the end game is the same: trick you, steal your cash, and then disappear.
The types of car scams you need to know about
Let's say you're on Facebook Marketplace. You find a car. It's a late model, has low KMs, and is clean inside and out. Perfect. And the price? A few grand below market value. The seller says they're moving overseas and need it gone fast.
You message them. They reply within minutes.
They say they'll ship it to you through a "secure third party". You just need to pay a holding deposit. They send you a link, and it looks official enough. But it's not.
You pay, and then...nothing. The seller's gone, and you don't get your car. That's because the car was never theirs. It was a scam.
This is just one way a car scam can unfold. Here are a couple of others:
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Fake buyers
You list your car, and a buyer gets in touch quickly. Maybe too quickly. They say they'll pay by PayID® or PayPal. Then—surprise—they claim the payment is "on hold" and ask you to send money to unlock it. They might even show you a screenshot. It's fake. The payment was never sent.
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Fake listings
These appear on real sites: Gumtree, Carsales, and Marketplace. The ad looks legit. But when you message the seller, they push to move the chat to email or WhatsApp. They don't want the platform involved because it's a scam. And they'll often ask for money before you've even seen the car.
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Tampered odometers
You find a car with low kilometres that looks like a great deal. But scammers use cheap software to roll the odometer back by tens of thousands.
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Stolen cars
Some sellers are criminals flipping stolen cars with fake rego papers and cloned VINs. The car might even have debt attached.
How to spot a car sale scam
In the market for a new car? Congrats, but now's not the time to turn your scam radar off. Instead, look out for these red flags:
- Prices that feel too low: If it's thousands under market value, ask why. Scammers bait you with deals that feel urgent.
- Refusal to meet in person: If they say they're interstate or overseas, take that as a warning sign.
- Vague or scripted replies: Real sellers answer your questions. Scammers copy-paste generic lines and avoid sharing details.
- Pressure to pay upfront: Anyone pushing you to "hold" the car with a deposit before you've seen it could be a scammer.
- Requests to chat off-platform: If they ask to move from Facebook to email or WhatsApp, stop. It's a tactic to avoid being reported.
- Weird payment requests: PayID, PayPal "overpayments", gift cards - these are all common signs of a scam.
- No inspection available: If they claim the car is "with a courier" or "in storage", it's likely a scam. You should always see it in person.
- Fake documents: Rego papers, service logs, and even driver's licences can be faked. Cross-check with your state's vehicle registry.
Think you've been caught in a car scam?
It happens, and it's not your fault.
Here's what to do now:
- Stop contact straight away. Don't reply. Don't send more information. Don't pay another cent.
- Call your bank. The sooner you call, the greater the chance they have to freeze or recover the funds.
- Report it to ScamWatch. Head to scamwatch.gov.au. Reporting helps stop the scam from affecting someone else.
Even if you're unsure, it's worth acting fast. Better to be safe than sorry.
4 simple ways to stay scam safe
Want to avoid car scams? These simple steps can help protect your wallet and your new wheels.
- Only pay after you've seen the car. No test drive means no deal. If you haven't seen it in person, don't send money.
- Stick to secure sales platforms. Keep all messages and payments on trusted sites like Carsales.
- Check out the seller's details. Look up the name, phone number, or email online. If it's been flagged before, you'll usually find a warning.
- Trust your gut. If something feels off, like the price is too good to be true or the seller is pressuring you, walk away.