10% of Brits have been the victim of fraud when buying a car, according to the latest ‘The Road Ahead’ research from Close Brothers Motor Finance.
With the growth and evolution of the motor industry and its market, changes to the car buying experience over time have provided consumers with more choice, but also presented scammers with more opportunities to deceive buyers.
The findings suggest younger adults are more at risk of falling victim to fraud when buying a car. Of the 10% of adults who claimed they had experienced fraud, most are young buyers. Just under a quarter (24%) of those 24 or under have been scammed, as have 15% of 25 to 34s. In contrast, just 8% of people aged between 45 and 54, and only 3% of 55+s, have fallen victim to scams.
Considering where, and how, car buying scams take place, the data suggests the internet is where people are most concerned that fraudulent activity is most likely to occur. When asked where people are most likely to become a victim of fraud when purchasing a car, 28% said social media, followed by private sales (18%). Comparatively, only 8% believe people are most likely to fall victim when purchasing a car at a car dealership. With the younger generations typically spending more time online, such insight and analysis rationalises and supports the conclusion that younger adults are more likely to become victims.
Additionally, the data highlights a notable gender trend, with women less likely than men to experience fraud when buying a car. Men are three times as likely to have fallen foul to scams when buying a vehicle; 15% of men have been scammed, compared to 5% of women.
Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “Though the internet has become an increasingly popular and convenient way to buy and sell a vehicle, with platforms such as Facebook Marketplace offering an easy solution, it has in turn become a popular operating environment for criminals.
“Consumers and their spending habits are easily influenced by what they have seen online. Coupled with the current economic crisis, it would seem enticing offers advertised through online channels by scammers are catching the eyes of consumers, specifically younger drivers. More awareness is needed, now more than ever, as financial hardship will only make consumers more susceptible to falling victim to online scams as they search for second-hand cars. Trustworthy and legitimate car dealers are in an excellent position to help educate, support, and protect consumers in their car buying journeys, as they have a regulatory responsibility to treat customers fairly.”
