How to Avoid Car Scams in South Africa: Buyer & Seller Safety Guide

Overview: Car Scams are on the Rise in SA

With rapid growth in South Africa's used vehicle and salvage market, online car scams have become increasingly sophisticated. Both sellers and buyers-especially those dealing with damaged, non-running, or written-off cars-face potential risks, from fraudulent payments to fake buyers and deceptive dealers. It's essential to protect yourself with up-to-date knowledge and safe practices whenever you transact.

Common Car Scam Types in South Africa

• Fake proof of payment (fraudulent EFT notifications)
• Phishing calls or emails requesting personal and banking details
• Buyers using stolen or fake identity documents
• "Overpayment" scams: receiving a cheque or EFT for more than the agreed price and being asked for a refund
• Misrepresenting vehicle condition, odometer rollback, or cloned VIN numbers

When to Be Extra Cautious as a Seller

If you're selling a damaged or non-running car, caution is warranted in these situations:

• Buyer refuses to meet in person, wants to handle everything remotely, or pressures you for urgent collection
• Unusually high offer for a badly damaged or non-marketable vehicle
• Payment by "guaranteed cheque" or bank transfer with instructions not to check with your bank
• Potential buyer sends you links to external websites for "vehicle verification"-often phishing traps

Table: Common Scam Signals

If you spot one or more of these signs, pause negotiations and verify thoroughly before proceeding.

Seller Safety Tips (Especially for Damaged Cars)

• Meet in a safe, public location whenever possible
• Never hand over keys or documents until full payment reflects in your bank account (not just an SMS)
• Verify buyer's identity and record their ID and proof of address
• Use reputable car-buying services with transparent processes and strong reviews (e.g. Sell Damaged Cars)
• Ask for written agreements for large transactions

Buyer Beware: Second-Hand and Salvage Car Traps

Car buyers in South Africa, particularly those looking at salvage or damaged vehicles, face their own set of risks. Unscrupulous sellers may conceal accident histories, falsify odometer readings, or sell vehicles that are still under finance or involved in legal disputes.

Checklist: Buyer Safety Steps

• Request comprehensive service and repair records, if available
• Check the VIN/chassis number against the eNaTIS national database
• Obtain a vehicle history report through an established service
• Inspect the vehicle in daylight, ideally with a trusted mechanic
• Confirm that the seller is the registered owner, matching driver's license and vehicle logbook details

Navigating Paperwork & Payments Safely

Whether you're selling or buying, paperwork is a critical line of defence. In South Africa, always complete a Notification of Change of Ownership (NCO) form at your local licensing department. If a vehicle is damaged beyond repair ("code 3" or scrap), ensure proper deregistration is done to avoid liability. Never rely solely on digital communication for legal transfers.

Table: Secure Payment Methods Comparison (South Africa)

What to Do If You're Targeted by a Scam

• Cease communication immediately and do not provide further information
• Preserve evidence (messages, emails, bank notifications, ID copies)
• Report the scam to your local SAPS office and platforms like ScamWatch SA

When selling, platforms like How to Avoid Being Scammed and using reputable services can drastically lower risk. If you're a buyer, always cross-check vehicle history and registration before parting with any money.

Sources

• Arrive Alive: Car Sales Scams & Safety Advice
• SAPS: Fraud Prevention Tips
• NaTIS: Change of Ownership Requirements
• Sell Your Damaged Car: How to Avoid Being Scammed
• ScamWatch South Africa: Reporting & Awareness