BBB warns of online scam involving repossessed vehicles

A warning today for people looking to buy a repossessed car online.

The Better Business Bureau of Central & Eastern Kentucky says some websites are offering cheap deals on repossessed cars.

But the so-called deals are actually a scam. The BBB says scammers are using the names of well-known existing auto dealerships, hoping to fool customers into wiring them money for a deposit on a vehicle.

The BBB says victims never receive a vehicle, and they don't have a way to get their money back.

"The latest scam crossing our radar in our service area uses the name Superstore Used Cars, or the website, and gives an address in Hazard, Kentucky," said Neil Kingery, President & CEO of the BBB of Central & Eastern Kentucky said in a news release. "We have received many calls and e-mails from hopeful consumers outside of Kentucky checking out this non-existent dealer in Hazard because of the low, low prices offered for these repossessed vehicles. They tell us they were being asked to wire money via Money Gram to pay deposits."

Customers told the BBB they saw the advertisement for Superstore Used Cars and its website by either searching the Internet or in small advertising publications in the areas where they lived.

The BBB says the same website was also recently associated with a dealer name and address out of Louisville, but the address was recently changed to 800 Morton Boulevard in Hazard.

Some people also say phone numbers they were given for the company do not work.

The BBB says at last check, the website for that company didn't work.

The BBB says the following tips are red flags of this kind of scam.

1. The prices are too good to be true. Repossessed or no, it's not likely you will find a late model vehicle at a price well below market value on a legitimate company's website.

2. The dealer only accepts payment by money wire transfer. Never wire money to anyone that you do not know well and trust completely.

3. You are told to wire the money to an individual rather than the company. The scam artist explains this is in order to "avoid taxes." No legitimate auto dealer will advise you to do business in this manner.

4. The dealer communicates only through on line chat or e-mail, never by phone.

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