Buying a vehicle online can save time and make it easier to compare prices, models, and dealerships. However, consumers should also be aware of fake car dealership website scams, where criminals create websites that appear to belong to legitimate automobile dealers.
The Federal Trade Commission (FTC) recently warned consumers about scammers impersonating real car dealerships through convincing websites. According to the FTC, some fraudulent websites copy dealership logos, vehicle listings, photographs, and even customer testimonials.
Because these websites can look professional, it is important to research a dealership carefully before making a payment or sharing sensitive information.
What Is a Fake Car Dealership Website Scam?
A fake car dealership website scam happens when someone creates a fraudulent website that appears to represent a genuine vehicle dealer.
The website may display cars, trucks, SUVs, classic vehicles, or other automobiles for sale. The advertised prices may look attractive, and the website may contain professional-looking photographs and detailed descriptions.
After contacting the supposed dealership, the shopper may be asked to pay a deposit or the full purchase price before seeing the vehicle.
In some cases, the advertised vehicle does not exist.
The FTC says scammers have even used AI to help create convincing copies of legitimate dealership websites.
How Fake Car Dealership Scams Work
Although scams can vary, a typical situation may follow these steps:
1. A fraudulent website is created
The scammer creates a website that resembles a genuine dealership website.
It may include:
- Dealership logos
- Vehicle photographs
- Vehicle descriptions
- Customer reviews
- Contact information
- Financing information
- Shipping or delivery details
2. Attractive vehicles are advertised
The website may list vehicles at prices that appear significantly lower than comparable vehicles elsewhere.
An unusually low price does not automatically prove that a dealership is fraudulent, but it is a reason to investigate further.
3. The customer contacts the seller
The supposed dealership may communicate through email, telephone, text messages, or online chat.
The representative may appear helpful and knowledgeable about the vehicle.
4. The customer is asked for payment
The scammer may request a deposit, transportation fee, insurance payment, or the full vehicle price before the buyer has independently verified the vehicle.
5. The vehicle is never delivered
After receiving payment, the supposed dealership may stop responding or continue requesting additional payments.
The buyer may eventually discover that the website was not operated by the dealership it claimed to represent.
Warning Signs of a Fake Car Dealership Website
Knowing the warning signs can help consumers make safer purchasing decisions.
The vehicle is unusually cheap
One of the biggest warning signs is an offer that seems substantially better than similar vehicles on the market.
Before assuming you have found an exceptional bargain, compare the vehicle with listings from several established dealers.
You cannot inspect the vehicle
The FTC recommends asking to see both the vehicle and the dealership in person. If visiting the dealership is not possible, the FTC suggests considering an independent mobile inspection service.
Be cautious if a seller refuses reasonable requests to verify the vehicle.
The seller creates unnecessary urgency
Be careful if you are told that you must send money immediately because another buyer is waiting or because the offer expires within a few hours.
A legitimate vehicle purchase should allow you enough time to perform reasonable checks.
The payment method seems unusual
Extra caution is necessary if the seller insists on payment methods that provide limited protection or are difficult to reverse.
The FTC advises consumers to avoid payment methods commonly favored by scammers, including wire transfers, gift cards, and cryptocurrency.
The website looks professional but has little independent history
A polished website does not necessarily establish that a dealership is genuine.
Scammers can copy information from legitimate businesses and create websites that look convincing.
The Better Business Bureau has also reported cases involving fraudulent vehicle websites that imitate reputable sellers.
How to Verify an Online Car Dealership
Before making a major purchase, take time to independently verify the seller.
Search for the dealership
Search for the dealership’s name together with terms such as:
- Scam
- Complaint
- Review
- Customer experiences
- Fraud
The FTC specifically recommends searching for complaints and scam reports when researching a dealership.
You can also check the Better Business Bureau for available business information and consumer reviews.
Verify the physical address
Don’t rely solely on the address displayed on the suspicious website.
Search for the dealership independently and check whether the business actually operates at the stated location.
Contact the dealership independently
If a website claims to represent an established dealership, find that dealership through an independent source and contact it directly.
Ask whether the website, vehicle listing, salesperson, and telephone number are genuinely associated with the business.
Ask to inspect the vehicle
Whenever possible, see the vehicle before paying.
Check the vehicle’s condition, identification number, documentation, and ownership information.
If you cannot travel to the location, consider hiring an independent inspection service.
Be careful with vehicle history reports
A seller may ask you to purchase a vehicle history report from a website they recommend.
Don’t automatically assume that the website is legitimate.
The BBB has warned about fake vehicle-history websites that can be used to obtain money or personal information from prospective buyers.
If you need a vehicle history report, independently research the provider before entering your payment or personal information.
Be Careful With Fake Shipping and Escrow Services
Some online vehicle scams involve supposed shipping companies or escrow services.
The seller may provide a link to a professional-looking website and claim that the third-party company will safely handle your payment or vehicle delivery.
However, the supposed third party could be part of the same scam.
The BBB advises consumers to independently verify shipping and escrow services rather than relying on links supplied by an unfamiliar seller.
Does an HTTPS Padlock Mean a Car Website Is Legitimate?
No.
A website can have HTTPS encryption and still be fraudulent.
The padlock generally indicates that the connection between your browser and the website is encrypted. It does not prove that the business operating the website is genuine.
The BBB similarly warns that a website having a padlock does not automatically mean it is safe to shop there.
Always investigate the business itself, not just the website’s security certificate.
How to Protect Yourself When Buying a Car Online
Consider these safety measures before completing an online vehicle purchase:
- Research the dealership independently.
- Compare the vehicle’s price with other listings.
- Verify the dealership’s physical location.
- Ask to inspect the vehicle.
- Consider an independent vehicle inspection.
- Verify the VIN and vehicle history independently.
- Avoid rushing into a purchase.
- Be cautious about unusual payment requests.
- Don’t send money simply because a seller creates a sense of urgency.
- Keep copies of emails, messages, receipts, advertisements, and other transaction records.
The FTC also recommends keeping records of online purchases and communications with sellers.
What If You Already Paid a Fake Car Dealership?
If you believe you have been deceived by a fraudulent dealership, act quickly.
Contact your bank, card issuer, or payment provider and explain the situation. Ask whether the payment can be cancelled, disputed, or otherwise recovered.
Save evidence such as:
- Website addresses
- Screenshots
- Advertisements
- Emails
- Text messages
- Receipts
- Invoices
- Payment records
- Vehicle photographs
- VIN information
- Names and contact information provided by the seller
For consumers in the United States, suspected fraud can be reported to the FTC through ReportFraud.ftc.gov.
You can also find additional consumer protection information through the FTC Consumer Advice website.
If you paid by credit or debit card, contact your card issuer promptly and ask about the available dispute process. The FTC provides additional guidance on handling charges for goods that were never received.
Final Thoughts
Online car shopping can be convenient, but buyers should take time to verify a dealership before making a large payment.
A professional website, attractive vehicle photographs, positive testimonials, and a low price do not by themselves prove that a dealership is legitimate.
The safest approach is to research the seller independently, inspect the vehicle whenever possible, verify important information, and avoid payment methods that provide little protection.
If a seller refuses reasonable verification or pressures you to send money immediately, consider stepping away from the transaction and looking for another seller.
A few extra minutes of research can help prevent a very expensive mistake.
Frequently Asked Questions
How can I tell if a car dealership website is fake?
Check the dealership’s physical location, independent reviews, contact information, business history, vehicle listings, and payment requirements. Contact the dealership using independently obtained information rather than relying only on the website.
Is a very cheap car online a scam?
Not necessarily. However, an unusually low price should encourage you to investigate the seller and vehicle carefully before making any payment.
Can scammers copy legitimate dealership websites?
Yes. The FTC says scammers have been creating websites that imitate legitimate dealerships, including copying logos, vehicle listings, photographs, and testimonials.
Is it safe to pay for a car by wire transfer?
Wire transfers can be difficult to reverse. Be particularly cautious if an unfamiliar online dealership insists that a wire transfer is the only payment option.
Can a fake dealership use real vehicle photographs?
Yes. Scammers may copy photographs and descriptions from legitimate vehicle advertisements and use them on fraudulent websites.
Where can I report a car dealership scam?
U.S. consumers can report suspected fraud to the Federal Trade Commission through ReportFraud.ftc.gov. You can also report suspicious activity to appropriate local or state authorities.
Helpful Consumer Resources
- FTC Consumer Advice — General consumer protection information.
- FTC Car Buying and Ownership Resources — Guidance on buying and owning vehicles.
- FTC Fraud Reporting — Report suspected fraud in the United States.
- Better Business Bureau — Business information, reviews, and scam resources.
