A sophisticated used vehicle sales scam has been exposed, which relies on the auction sector to succeed, which means there is no potential protection from any losses incurred by duped purchasers.
According to the motoring correspondent on 702, Warren Tucker, this scam relies on actual vehicles on show at auction houses which are photographed at the premises. They are then offered for sale at unbelievably low prices, with the picture on social media and the internet, claiming it is in the interests of the auction house to sell them off and not clutter up the auction process.
Anyone showing interest is then approached by email with the necessary “registration” documents to be filled in and due to time constraints, the amount for the vehicle must be paid to secure it. All correspondence at this stage uses the seemingly authentic letterhead of the auction house where the vehicle is lodged.
Money paid, registration documentation in hand, the duped new owner claims the vehicle from the auction house. It is legitimately with the company for auction but the correspondence has been with a scam party and the money is gone.
The Consumer Protection Act (CPA) does provide an element of protection for used vehicles which develop defects after purchase. Registered motor dealers give a compulsory six-month warranty which must be automatically honoured when a sale occurs.
However, the same does not apply to auction sales undertaken on a “voetstoets” understanding.
