Be wise when buying cars online

We can buy lots of things online. Traditionally these things have been books, CDs, small electronics gadgets and so on. However, now the market has changed and we can now buy cars and even vans online.

But with this quick access and online ease comes added risks that we should all be aware of such as dodgy dealers, mis-selling and fraud. Here’s what you should take note of before considering an online auto purchase.

Growing online car dealership market

There’s no more trudging around car dealership parking lots to find the right car. Now you can purchase a car with a quick search online from the comfort of your home.

You can buy cars online through Nedbank’s Avo app which was launched in May 2020; cars.co.za, webuycars.co.za and autotrader.co.za.

Like many other websites and apps, Avo was launched during the pandemic to bring consumers and businesses together. The pandemic prevented many from leaving homes and many companies ventured online and expanded their digital offerings to cater people obeying the lockdown rules.

There’s plenty of scope to grow and choice in abundance. With Avo, for example, over 80 MFC-approved dealers will be onboarded by the end of this year, with a total of 2 500 vehicles

Black Friday and every day

Buying a car online can save you time, energy and sometimes even money but with this speed and ease of access comes dangers that you would find in the real world too. You can become a victim of online fraud at any time of the year, but people can become vulnerable when known specials abound – such as on days like Black Friday, which this year falls on the 25 November.

‘I’ve said it before, and I’ll say it again: if you’re being offered a deal on a car that seems too good to be true, it probably is.

‘Unfortunately, many cash-strapped South Africans are being lured into scams by the promise of saving big money on their next car – and they’re ending up out of pocket and without any wheels,’ warns Kriben Reddy, TransUnion Africa vice president of auto information solutions.

The real deal?

Scammers can make an online advert look very real and consumers are often none the wise. Last year, at around the time of Black Friday, TransUnion Africa saw many fake ads and website for vehicle auction houses and car dealerships that were claiming to sell cars at unbeatable prices.

The adverts, that appear legitimate, are packed with images and details like mileage, specs and smiling salespeople. What should set alarm bells off immediately is that these cars are going for up to R100,000 less than normal prices. But as they’re using the guise of it being a ‘Black Friday’ deal or ‘stock clearance’ more gullible people fall for this trick.

During the height of the pandemic, they took advantage of Covid protocols, telling customers they were not allowed to attend the auction. They’d ensure a sense of urgency and encourage people to send money for a deposit to ‘secure’ the deal.

‘Other popular scams include selling cars with hidden faults, accident-damaged vehicles or vehicles that are still under finance with a bank. What that means is the bank is still the legal owner and will report that car as stolen or attempt to take back the car,’ adds Reddy.

Top tips for fraud prevention

To avoid falling victim to an online car selling scam follow these tips:

1. Don’t be lured by a cheap price

Reddy says: ‘Let me be 100% clear: unless there is something significantly wrong with a vehicle, it is impossible to get a car that is tens of thousands of rands cheaper than the average. This should be your first red flag.

‘If the dealer’s phone number is superimposed on the car, that’s another. And when it comes to auctions, there is no reputable auctioneer in the country that will not allow you to view the car upfront. You have the right to view the vehicle. If they tell you that you can’t, for whatever reason, don’t just walk away – run!’

2. Do your research

If it sounds too good to be true, scan some reputable vehicle sites to get an idea of an average price of the car you’re interested in. Factor in things like age, mileage, and specs. ‘There may be variations of a few thousand rand here and there, but the ballpark price will be similar,’ says Reddy.

3. Verify the seller

TransUnion Africa says there are several ways to do this through WhoZhoo, ThisisMe and VerifyID. Reddy explains: ‘you register and verify yourself, then send a request to the person you want to engage with to get them to verify themselves. If they don’t, that’s a clear signal that something’s wrong – and you should stop engaging immediately.’

4. Meet in a public setting

Meet at a busy public space like a parking lot or ideally opposite a police station if possible. ‘But here’s a better idea: tell the buyer or seller to meet you at a Dekra or AA vehicle inspection site, where you can do an inspection on the spot. If they don’t want to meet you there, walk away,’ says Reddy.

5. Verify the business exists

Google and Google Maps can be your friend. Check the address is legitimate by checking it online. Use street view. If the address is in a place where there is an abandoned warehouse or fields, you can be sure it’s fake. Are there any reviews of the dealer or individual on sites like Hello Peter, Facebook or Gumtree? If you see lots of complaints – avoid!