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Used Car Scams and Fraud
Buying a used car is a major purchase and must be undertaken with open eyes. The major risks in purchasing a second hand car hide in fraudulent ads for used cars that are actually stolen, rebirthed or encumbered by debt. To protect yourself from fraudsters:
Don’t rush into your purchase. Remember : if it sounds ' too good to be true ' - it probably is. If you are suspicious that the used car ad may be a scam, follow these guidleines :
- Never transfer money via your bank or any other company to a seller without viewing the car in person.
- Approach amazing bargains and very low priced vehicles with suspicion.
- Make sure you get the seller’s contact details, including name, contact phone number and if possible address and/or drivers licence number.
- Ring the seller and ask them questions about the vehicle and it's history.
- Always physically view the vehicle, preferably in daylight hours as it’s easier to see any damage.
- Where possible obtain a third party professional inspection of the vehicle.
- Always seek independent advice about the soundness of your purchase decision before going ahead with the purchase of any used car.
- Research the vehicle’s registration status, financial records and whether the vehicle is stolen. This can be done with your state/territory road and traffic authority based on the registration number.
- Consider purchasing a REVS certificate from your state/territory road and traffic authority. This will give you the history of the second hand vehicle. Note: fees may apply
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