VEHICLE FRAUD



Buying & Selling A Vehicle


Buying or selling a vehicle today is more than likely the most expensive commitment you could make after purchasing a house. It is unlikely that you will have the security of legal advice, solicitors, agents etc. to protect the transaction, and although the process of buying or selling a vehicle is usually a straightforward business, both buyers and sellers can put themselves in a position to become a victim of fraud or other crimes.

Always be careful not to let your excitement of buying or selling a vehicle jeopardize your safety, and your money, and remember – if an offer looks too good to be true, it usually is!

UK fraud has included advice, useful contacts and links in this page to help you avoid becoming a victim of fraud or other crimes.

BUYING A VEHICLE


When buying a secondhand vehicle, ensure that the vehicle you are buying is the property of the seller and that it has not been stolen. A history check will also verify whether the car has been reported as an insurance write-off, has any outstanding finance on it or has any mileage inconsistencies. Carry out your own history check, as this will protect you and will provide the current information about the vehicle. Do not accept a history check from the seller, as it may be false or at best out of date.

We have listed just some of the organisations that provide a history checking service for your convenience:

• Autotrader (Trader Data Systems, TDS): Telephone :0844 470 3708
• eBay
• Exchange and Mart
• Motors
• Experian AutoCheck
• HPI Limited

However, these websites and the police cannot confirm ownership details – they are only able to verify the status of the genuine vehicle with the registration number provided. If you do suspect that the car you are about to buy is stolen, do not continue with the transaction and report this to your local police.

Applying for car finance? View your FREE Experian credit report online to make sure you get the best deal and interest rate.

 

Buying From A Private Seller


When planning to buy a vehicle privately it would be wise to do your research on the seller as well as the vehicle.

Get a landline telephone number – however, keep in mind that it could be for a public telephone box or a number that might transfer to another telephone. It is best to always meet a private seller at their home address - check that the car is registered on the V5c to that address and look for signs that they really do reside there. If you feel at all unhappy with the seller, always trust your instincts and walk away. Do not be tempted by that amazing bargain.

 

Vehicle Identification Number (VIN)


Check that the vehicle identification numbers (VIN) matches that on the vehicle’s documents, and that they have not been tampered with.

The VIN number will be found in at least three places on a vehicle:
1. The ‘visible’ VIN plate is below the windscreen on the nearside (left) of the car, under where the tax disc should be placed.
2. The ‘VIN plate or sticker’ will normally be located somewhere under the vehicle’s bonnet.
3. There will be a VIN number stamped in the main body of the vehicle – that number that is placed in a different location per vehicle type.

Be very wary of purchasing a vehicle that shows signs of etching or evidence that numbers have been tampered with or removed. Ensure that the vehicle registration document (V5c) has not been tampered with, and that it is watermarked. For your own safety compare the document with another V5c, or maybe consult the V5c for your own vehicle.

Visit the DVLA website for more information on VIN, at www.dvla.gov.uk

 

Vehicle Documents


It is absolutely essential that any vehicle you buy has it’s correct documentation – Never buy a vehicle if the seller – for whatever reason - cannot produce the vehicle registration document or any other documentation, such as MOT, or for a new vehicle, the purchasing correspondence. If possible, confirm the service history of the vehicle with the garages listed.

You can check that the MOT certificate is valid at www.motinfo.gov.uk - you will need the Test Number from the MOT certificate to perform this check.

 

Inspecting The Vehicle


Always consider having the vehicle professionally – either by a private company or garage or through a motoring association before you commit to buy. They will provide a thorough examination of the vehicle for your peace of mind, and provide you more safety with your transaction.

 

Paying For The Vehicle


There are a range of ways you can pay for a vehicle – by cash, cheque, or by banker’s draft or bank transfer. Choose a method that’s convenient for you, however, always be aware that the safety of yourself and your money is paramount.

An immediate bank transfer can be easily done using the CHAPS system for a nominal fee of around £20-£30. It may be worth considering meeting the seller at your bank to complete the transaction. Please be aware that CHAPS payments are irrevocable.

For obvious reasons it can be potentially dangerous to carry a large amount of cash when you’re going to meet a stranger. If you do want to pay by cash, use your common sense and take someone with you.

Cheques and banker’s drafts have the potential to be fraudulent or counterfeit - your seller may not be prepared to accept these, and in other situations you may find yourself in, you should think twice about accepting these as a method of payment too. Cheques and banker’s drafts are commonly associated with trouble.

Never pay for a vehicle – or anything else for that matter - with a money transfer service such as Western Union – these services are meant to be used for transferring money between people who know each other.

Many ESCROW or shipping websites are fake and created by fraudsters so be very careful. If you do decide to use ESCROW, ensure that it is based in the UK and verified by the FSA.

 

Using The Internet


The Internet is a fantastic tool for finding bargains, however, because of it’s popularity and usefulness it is also used by criminals to sell on stolen vehicles and even vehicles that don’t exist. It is so easy to upload photographs and details of genuine vehicles in the hope of snaring a victim hunting down that bargain of the century. Most websites and internet auction sites do provide safeguards for buyers and sellers. It is vital that you familiarise yourself with such safeguards to lessen your chance of being caught out by a con artist.

Understand the rules of the site and how it works before you make a purchase, and if you do win an auction, carry out the checks discussed previously before paying for your vehicle.

 

SELLING A VEHICLE


Firstly you need to decide the best place to advertise your vehicle - your local newspaper, in a motoring magazine or what about nationally using the Internet? Whatever medium you choose, make sure that you fully understand the rules of the publication or Internet site.

Try to provide a number of ways that prospective buyers can contact you – your email address, mobile number and landline number. Be aware that thieves can pose as potential buyers – this is quite a popular scam. They may contact you through your advertisement asking for specific details of the vehicle or even for your personal details. This information can then be used to create a ‘cloned’ advertisement.

Remember, if a potential buyer is genuinely interested, they will come to see the vehicle.

 

Buyers From Abroad


Beware of emails from abroad. The ‘buyer’ may be willing to buy your vehicle without seeing it and maybe offer to make over-payments (see criminal cashback). This is extremely suspicious behaviour and you should never consider parting with your vehicle in such a way. You should never even respond to such an email.

Also beware of shipping or ESCROW companies recommended by the potential buyer. Again, very suspicious behavior. Disregard these emails, no matter how tempting the offer or how much you want to get rid of your vehicle.

 

Vehicle Documents


You will need to allow the potential buyer inspect the vehicle’s documents, however, ensure that they do not make copies or take photos of them. Remember that most mobile phones contain a camera!

 

Test Drives


A few common sense actions are needed here :
• Always check that the potential buyer has a valid driving license and insurance to drive your vehicle.
• It would be crazy to allow the buyer go on a test drive alone – you may never see them again!
• Never leave the buyer alone with your keys.
• Never get out of the vehicle to allow a test drive, leaving the keys in the ignition.
• Always stay as vigilant as possible!

 

Receiving Payment


As discussed earlier, there are a range of ways you can be paid for your vehicle – by cash, cheque, or by banker’s draft or bank transfer. Choose a method that’s convenient for you, however, always be aware that the safety of yourself and your money is paramount.

An immediate bank transfer can be easily done using the CHAPS system for a nominal fee of around £20-£30. It may be worth considering meeting the buyer at your bank, or there’s, to complete the transaction. Please be aware that CHAPS payments are irrevocable.

For obvious reasons it can be potentially dangerous to receive a large amount of cash when you’re with a stranger. If you do want to receive a cash payment, use your common sense and take someone with you.

Cheques and banker’s drafts have the potential to be fraudulent or counterfeit - you should think twice about accepting these as methods of payments. Cheques and banker’s drafts are commonly associated with trouble.

Never accept payment for your vehicle – or anything else for that matter - by a money transfer service such as Western Union – these services are meant to be used for transferring money between people who know each other, not strangers. If the buyer insists on this method, do not carry on with the transaction – there are easier and safer ways to get paid for your vehicle, and no doubt, plenty more interested potential buyers for your vehicle, so never be tempted by a quick sale – it’s not worth it!

 

Helpful Stuff


It may be wise to visit some of the websites listed below for further information on buying and selling vehicles safely.

Before acting on any information or advice given on any of those sites, ensure that you understand the terms and conditions on the website or those provided by the advertiser – this really is a good habit to start!

• Office of Fair Trading (OFT)
• Driver and Vehicle Licensing Agency (DVLA)
• Direct.Gov web page
• Basic details of a vehicle can be checked on this web site
• MOT test certificates check telephone : 0870 330 044
• Bank payments advice. (CHAPS)
• Financial Services Authority
• Escrow information
• Get Safe On Line
• Trading Standards