Consumers with poor credit on a tight budget need to know about a used car scam that could separate them from what little money they have for a down payment
Be careful out there
Here at Auto Credit Express we know something like this can happen to anyone. But it's especially important for car buyers with poor credit – many of whom don't have the money to lose to a new twist on the used car scam.
We know about this because for over twenty years we've been helping car buyers with bad credit find the right kind of new car dealers that can give them their best chances for auto loan approvals.
Not always knowing this opportunity is available, in some cases consumers with poor credit scores who have been turned down for a conventional car loan believe the only way they can get a car is with a loan through a BHPH dealer or by paying cash.
So with this money in hand they go searching on the internet for a good deal – which sometimes can lead to disastrous results.
Double dip scam
Because people that have suffered through credit problems are sometimes desperate for a vehicle, they're often easy marks for online fraudsters. We were reminded of this after checking out an article from the Internet Crimes Complaint Center (IC3) - a partnership between the FBI and the National White Collar Crime Center.
Here are some excerpts:
Most of us are familiar with fraud involving automobiles being sold over the Internet. A fraudster will post a nonexistent vehicle for sale on the Internet, typically a luxury or sports car. The details of the vehicle, including photos and description, are typically lifted from legitimate websites. An interested buyer, hopeful for a bargain, responds and is told that the vehicle is located overseas. The fraudster then instructs the victim to send a deposit via wire transfer to initiate the shipping process.
In a new twist to this scam, the fraudster advised there was an issue with the initial wire transfer and sent the victim a cashier's check. The victim was instructed to cash the check and resend a second wire to a different account. Unaware that the check was counterfeit, the victim followed through as instructed by the fraudster. This resulted in the victim getting duped two times and the fraudster accomplishing his "double-dipping" strategy.
Victims should be vigilant when an Internet transaction involves wire transfers and cashier's checks. Most individuals believe that cashier's checks are as good as cash and they clear the day after they are deposited. However, banks are required to make the funds "available" in the individual's account within 48 hours, which can be days before the cashier's check clears or bounces. Once the bank makes the funds available, the counterfeit check circulates to incorrect Federal Reserve locations. Generally, the average cashier's check takes up to two weeks to clear, not two days. The bottom line: fraudsters understand the U.S. banking system process and capitalize on victims' misconceptions of the term "available funds."
As we see it
Our advice to buyers that have experienced car credit issues is this: be careful when you go online looking for a great deal on a car. In most cases, if the deal seems too good to be true, it probably is.
Our suggestion: instead of taking that kind of a chance or checking out a tote the note car lot, why not check us out here at Auto Credit Express where we match applicants that have experienced car credit issues with dealers that can arrange for approved auto loans.
So if you're ready, you can take the next step now by filling out our online auto loans application.
For more information about this scam, you can check out the following link: http://www.ic3.gov/media/2011/110510.aspx.