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Repo Cars


Repo cars are great, as they are cheaper than buying normal cars. Unfortunately, there are many scams when it comes to purchasing a Repo car. Every year, there are a significant number of recent complaints regarding Internet auction fraud involving the sale of automobiles purported to be located outside of the United States. The typical fraud involves an auction for a vehicle said to be in Europe, and for which the buyer pays with Western Union or other wire transfer mechanism. The buyer does not receive his or her automobile in these auctions, and the money is not recoverable.


It is important that all potential buyers of vehicles understand the risk of purchasing repo cars that are located outside of the United States. It is important consumers to do considerable research before purchasing an automobile on an auto auction Web site when the vehicle is listed as being located in a foreign country. Unless the dealer selling the automobile is personally known to the buyer as being reputable and the money transfer is handled through a legitimate escrow service, there is a high risk involved in engaging in a purchase.


Automobile shoppers are also cautioned to be wary of “second chance auctions” and other schemes in which a “seller” of a vehicle e-mails a potential buyer to inform the buyer the high bidder on the auction defaulted and the vehicle can be purchased by the buyer at his or her previous bid or at a discount. This tactic has been used in many auto auction frauds.