How does a car buying or selling scam work?
Car scams either advertise vehicles that do not exist and collect deposits, or use overpayment or stolen-check schemes when selling, leaving buyers without a car or sellers without genuine funds.
Last reviewed: 10 June 2026
Explanation
In the buyer-targeted variant, a vehicle is listed at an attractive price on a classifieds or marketplace site — typically with a story that makes the price plausible, such as a divorce, relocation, or military deployment. When a buyer inquires, the seller explains they are currently away and will ship the vehicle or arrange a third-party viewing after a deposit is paid. The deposit is irreversible; no vehicle arrives. Some operations run elaborate escrow-impersonation schemes using fake eBay Motors, AutoTrader, or shipping company pages.
In the seller-targeted variant, a buyer pays by cheque for the asking price or more. They may collect the vehicle before the cheque clears or ask the seller to wire back the overpayment. The cheque is fraudulent. By the time the bank identifies it, the vehicle is gone and the seller owes the bounced amount.
Finance fraud variants involve misrepresenting a vehicle's history — clocking the mileage, hiding accident records, or cloning a vehicle's identity (VIN fraud) from a genuine example of the same model. The vehicle exists and is handed over but carries hidden problems that invalidate the value agreed.
A separate dealer fraud involves 'yo-yo' financing: a buyer drives away believing financing is approved, then is called back days later to sign a new contract at worse terms — relying on the buyer's attachment to the car and reluctance to return it.
Common red flags
- The price is noticeably below market for the vehicle's specification and age
- The seller cannot meet in person and proposes shipping after an upfront deposit
- An escrow service is suggested whose website was registered recently
- Payment for a vehicle you are selling arrives as a cheque for more than the agreed price
- A buyer asks you to wire back the 'overpayment' before the cheque has cleared
- A vehicle's VIN number returns results for a different model or colour
What to do now
- Always inspect and test-drive a vehicle in person before any payment
- Run an independent history check on the VIN through a recognised service
- For private sales, accept only cash or a same-day bank-to-bank transfer you can verify before handing over keys
- Never accept a cheque for more than the agreed price — it is almost certainly fraudulent
- If you lose a deposit to a non-existent vehicle, report to the platform and national fraud authority
- For dealership financing concerns, consult a consumer protection advocate before signing revised terms
Frequently asked questions
Is eBay Motors shipping escrow legitimate?
eBay Motors does not offer a standard vehicle escrow or shipping service for private sellers. Any instruction to use an 'eBay shipping' or escrow service linked in a message is a scam.
What is VIN cloning?
VIN cloning involves affixing the vehicle identification number of a legitimate vehicle onto a stolen or otherwise problematic one, making it appear clean in database checks.
How do I protect myself in a private car sale as the seller?
Accept cash or a bank transfer confirmed in your account before handing over the keys and logbook. Never hand keys over against a cheque, regardless of how official it looks.