How to avoid used-car scams in South Africa
Purchasing or selling a car is exciting and can be life-changing for first-time buyers or sellers. However, be wary of used-car scams in South Africa. Here’s how to ensure you don’t fall victim.
South Africa has the continent’s most dynamic car market, from new to used, plus the greatest diversity of models and trims. Specifically, if you want a used car for your needs, the South African market has it. With that comes some concerns… Used-car scams in the South African market pose a big risk for inexperienced buyers and sellers.
How do you buy with confidence and avoid being scammed? The proliferation of virtual listing and selling platforms, from reliable and dedicated resources like Cars.co.za, to social media marketplaces, has meant that buyers need to be digitally literate about their customer journey.
Buying or selling a used car is a big financial decision. For everyone but the wealthiest collectors, it’s not an impulse decision. But because the market is so dynamic and competitive, with the risk of being outbid or beaten to a great deal, buyers can expose themselves to needless risk when they get “buyer’s fever”.
To avoid being scammed, we’ve compiled a list of best practices you can use to ensure you have a safe car-buying experience when doing a virtual deal.
Platform integrity
The car market has so many access points across the digital spectrum. Gone are the days when car shopping was a Saturday morning in-person experience exhaustingly walking down a car dealership street to visit multiple forecourts.
Today, you can shop virtually, which has many advantages but also risks. If you use a trusted, proven platform like Cars.co.za, the only limits on your buying experience are your budget and imagination. But not all virtual platforms are secure.
General listing sites don’t have the integrity of a dedicated platform like Cars.co.za. When you buy from a random social media listing, where pseudo-sellers don’t have to have their credentials verified, you enter a digital realm of almost infinite scammer risk.
Secure payments prevent used-car scams in South Africa
Buying fever is contagious and affects all car buyers. From people on a budget, trying to secure that bargain, to wealthy collectors shopping for a rare model, no one is spared.
Regardless of how much you want a specific car, don’t become a victim of a reservation scam before seeing the vehicle in question.
The “unseen deposit” is a scam gaslighting tactic. A seller informs you that the vehicle in question is about to be sold but they’ll keep it for you if you pay a holding deposit before even having seen the car. This is a terrible idea and way of doing business. If they’re willing to stall a pending deal for your holding deposit, how trustworthy are they in their end-to-end business dealings?
There are moments where a holding desposit can be made, sight unseen, but these are almost always in exceptional circumstances. Usually, it’s wealthy buyers who are trying to secure a limited-edition model or want to make sure a rare classic becomes theirs if a family trust is scheduled to take a long time to wrap up an estate.
Holding deposits for most “normal” car purchases, especially those on popular models like a Vivo or any Toyota, is a real warning sign. To walk away.
Vehicle transactions are not small deals. That means you need to be sure where the money is being transferred. South Africa has a very sophisticated and adaptable financial services and banking infrastructure. If a seller wants you to use an unusual payment method, it’s a clear signal to abandon the deal.
Matching numbers matter
There are many safeguards engineered into the vehicle manufacturing and retail system. Ensuring that all the numbers match is an important guiding principle.
The first number that must match is the Vehicle Identification Number (VIN). This must apply to the ownership and roadworthy documentation as well.
Beyond the vehicle numbers, ensure that the seller’s address matches the documentation accompanying the sale. It sounds so simple, but when deal fever develops, small details go unscrutinised. And that can have big consequences.
A good deal is better than a cheap one
There is no beating the market when it comes to buying a car. The sheer depth and volume of transactional data processed and modelled mean a great price discovery just doesn’t happen anymore.
If a car seems very well priced given its age and mileage, something is usually wrong. The car market is just too efficient and competitive for bargains to keep happening. Cars priced cheaply are that way for a reason.
As cars are becoming increasingly complex, there’s a bigger risk of mechanical and electronic faults developing, which can be easily masked when they are in their early stages. These could become incredibly expensive repair and maintenance issues for a new owner.
A car priced at a significant discount to its model, age and mileage peers is usually faulty. It’s either been in a collision and has been repaired, with that accident undeclared as part of its history; or there is a maintenance gremlin hiding deep in the powertrain, drivetrain or electrical architecture.
Used-car scams in South Africa can include peculiar service histories, or non-OEM parts being used in repair and servicing. These issues aren’t always easy to identify as a risk for buyers without deep technical and mechanical knowledge. And it takes a trained eye to spot them when going through what appears to be a “complete” service and maintenance history.
Avoid used-car scam behaviour signs
There are many ways to test a seller’s identity. And you should definitely go beyond email contact as proof of authenticity.
Phone numbers as a point of contact are superior to email because on WhatsApp you can do a video call to confirm identity. This can help a lot to avoid used-car scams in South Africa.
The car market is dynamic and deals move quickly, but a seller or buyer who is too eager creates risk. If you are selling and the buyer doesn’t seem interested in knowing as much as possible about the vehicle, its history, maintenance status, or mileage, there’s a high likelihood that you are going to get scammed.
That principle also applies to buying. If you are in contact with a seller who doesn’t seem interested in answering questions about the vehicle’s condition, you should heed the warning signs and exit the deal early.
In any car deal, whether buying or selling, you want a responsive pace of communication. But if responses are too eager or urgent, with a feverish need to close the deal, it’s a sign of a potential used car scam.
