Buying a car? New scam warning for South Africans
· The South African
South Africans looking to buy a car face a new warning over sophisticated online scams.
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The National Automobile Dealers’ Association (NADA) says criminals now use artificial intelligence (AI) to create convincing vehicle adverts and fake dealership identities.
They can also clone voices and manipulate video content to make fraudulent deals appear legitimate.
Scammers often lure buyers with attractive prices before demanding money upfront.
Beware of ‘repossessed’ car deals
One scam involves vehicles advertised as repossessed stock at bargain prices.
Fraudsters claim they can secure a vehicle before it reaches a bank auction. They then demand an upfront holding fee.
NADA warned that banks sell repossessed vehicles through accredited auction houses, not private deals arranged on messaging platforms.
Scammers may also pressure buyers to make an immediate electronic funds transfer (EFT). They often claim another buyer is waiting to take the vehicle.
The association’s vice-chairperson Thembinkosi Pantsi said AI has made these scams harder to spot.
“In the past, poor grammar, blurry images, or inconsistent branding were easily noticeable red flags,” Pantsi said.
Fraudsters can now produce professional adverts, convincing email addresses and realistic social media profiles.
“What looks like an unbeatable deal online can now quickly turn into a devastating financial loss,” he said.
Red flags car buyers should know
Pantsi urged buyers to question sellers who refuse an in-person viewing or cannot provide a verifiable physical location.
A heavily discounted vehicle and pressure to pay immediately should also raise concerns.
Buyers should verify a dealership independently before paying a deposit. They should check its physical address and look for reviews or complaints online.
The association also recommends buying from established, accredited dealerships.
Pantsi said reputable dealers can verify a vehicle’s ownership, history and condition. Consumers also receive protection under the Consumer Protection Act when dealing with legitimate businesses.
“Always prioritise reputable, professional car dealers with a physical footprint and a proven track record,” Pantsi said.
NADA urged consumers to verify both the seller and vehicle before transferring any money to avoid falling victim to scams.