Fake Car Dealer Websites Are Taking Buyers Money

The Car Exists Online. The Dealership Says It Never Sold It

The Federal Trade Commission is warning about fake car-dealership websites that can look convincing enough to collect large upfront payments from buyers before they realize the dealer never took their order.

The scam has a particularly sharp payoff: a buyer can complete what appears to be a legitimate purchase online, send money, and then contact or visit the real dealership only to learn there is no transaction and no car waiting for them.

Scammers Copy Real Dealerships

According to the FTC, scammers build websites that imitate legitimate auto dealers. They may copy logos, vehicle listings, photographs and other details from a real business. Some sites also display fake customer testimonials and detailed return policies to make the operation appear established.

The FTC says some of the sites promote rare muscle cars or hard-to-find classic vehicles, giving shoppers a reason to move quickly before someone else appears to buy the car.

The Payment Demand Is a Major Warning Sign

The agency says buyers should be especially cautious when a supposed dealer insists on an upfront wire transfer. Once money is wired to a scammer, recovering it can be difficult.

The FTC recommends independently searching the dealership’s name along with terms such as “scam,” “review” or “complaint.” But even strong reviews are not enough if scammers are impersonating a real business whose reputation already exists.

A Simple Verification Can Break the Scam

The most important step is to verify the vehicle separately from the website that is trying to sell it. The FTC recommends asking to inspect the vehicle and dealership in person when possible.

For remote purchases, buyers can ask to have an independent mobile inspection service see the car. If the seller refuses to allow an inspection or makes verification difficult, the FTC says shoppers should consider walking away.

References: Scammers Are Spoofing Car Dealership Websites: What You Need to Know | Online Search Results: The Good, the Bad, and the Scammy

The Truth In Facts team was assisted by generative AI technology in creating this content