MADISON, Wis. (WMTV) – The Wisconsin Department of Transportation and the Better Business Bureau are warning consumers to take a closer look before buying a car online.
According to the DOT, car sale scams have cost Wisconsinites anywhere from $25,000 to $190,000, and have recently been on the rise.
“We started seeing a trend of fake websites being made that were posing as legitimate Wisconsin dealers,” DMV Dealer and Agent Section Chief Maura Schifalacqua said.
Scammers will then use fake photos on those websites or Facebook pages to target consumers, eventually asking them to wire money. Typically, the website or post will offer the car at a very low price, according to the DOT.
After the buyer sends the money, they never receive the car and can no longer reach the fake dealer.
Since 2022, the Better Business Bureau of Wisconsin said it’s seen over 200 reports of consumers getting scammed by online imposters. While cars are one of the most popular scams, people also create fake websites to sell farming equipment, boats and ATVs as well.
BBB Wisconsin’s Southwest Regional Director Tiffany Schultz said people should ask to see the car-in person before buying. If the dealer insists on shipping the car directly, that could also be a red flag.
Schultz also said scammers may try to manipulate potential buyers into making an urgent decision to purchase the car by giving them emotional reasons.
According to Schifalacqua, other red flags include spelling and grammar errors on the website. She said scammers may even create a false bill of sale that may seem real, but isn’t.
Doug Schoepp, owner of local car dealership Schoepp Motors, said one way consumers can protect themselves is through a feature they use: FaceTime. He said video chatting with the seller is a way both parties can check for legitimacy and speak face-to-face, even in different states.
Schoepp said he encourages people to use a credit card when purchasing a car online.
“They should never give off a wire transfer or send a cashiers check,” Schoepp said. “They should be making their deposits with a credit card and also try to stay in-state.”
He said anything $35,000 to $40,000 below the market price for a car is likely a scam. In addition, he encourages people to shop in-person for their cars.
“For Wisconsin buyers, for Dane County buyers, Madison buyers I would do the best I can to buy local,” Schoepp said. “Sometimes out of state is too good to be true.”
If something seems off, you can call the DOT or the dealership to confirm.
The DOT provides a list on their website of all dealers licensed to sell vehicles. The BBB also recommends checking their website to check whether a business is accredited. There, you can also read reviews before making a purchase.
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