Criminals are becoming increasingly creative and may pose as an agent or staff member at a used car retailer or bank. “They are extremely convincing and appear authentic and it's relatively easy for them to dupe trusting members of the public. Their schemes are both innovative and sophisticated.”
Verify the source that you are buying the car from. “You need to consider all sorts of different factors. How long has the company been in business? Is it a member of the Retail Motor Industry Organisation of South Africa (RMI)? Is it part of a listed company? How much stock does the company have on its floor? Does it have a good reputation? How many people does it employ? Does it look professional and above board?” advises Jacobson.
Only deal with salespeople who are clearly employees of reputable companies. Avoid a so-called agent or company without a landline. “If the person with whom you're dealing only has a cellular telephone number, rather shop elsewhere. Large and reputable companies all have landlines,” Jacobson notes.
Remember that a salesperson at a used car outlet will always work in conjunction with an administration department as well as a finance and insurance (F&I) department. “If the salesperson wants to meet you in the parking lot to do the deal, be nervous and ask questions. Once a salesperson as ‘done the deal' so to speak, you're normally handed over to administration or F&I.”
The vehicle supplier should present you with all the necessary paperwork, including an offer to purchase, the vehicle's registration papers and (if available) a service book. When applying for finance, only deal with the professionals in the F&I office at the used car retailer.
“Ensure that you are dealing with the actual finance company, and not someone purporting to be from the finance company. If there is any doubt, telephone the bank or used car outlet and check that the person actually works there,” stresses Jacobson. “Be extremely wary of paying cash and avoid it if possible. However, if you are forced into paying cash elsewhere, ensure that you receive an official company receipt that is verified by the financial manager at the company. If a salesperson says the deal is dependent on a large cash deposit, be suspicious. When paying by electronic transfer, confirm the company's banking details and never pay into a private account or give a cheque to a private individual.”
“If you are dealing with an individual and not a company, be extremely cautious. Be very cautious of any private-to-private sales. The risks are huge: hijackings, false checks, stolen cars, the list of potential problems are huge. It is much better to deal with a company; that way, you have some recourse should anything go wrong,” explains Jacobson.
Buyers should never be greedy or in a rush to make such an investment. When you buy a television set, you compare features and prices. A car is your second most important investment, so it is vitally important to do your homework.
“We all want the deal of a lifetime and we all want a bargain but you will never get a car worth R100 000 for a mere R30 000. That's just not going to happen, not at Burchmore's or any other professional used car retailer,” he concludes.
