Car scam alert: Fake auction sites fleecing South African buyers

SOUTH Africans searching for bargain car deals online are increasingly falling prey to sophisticated scams involving cloned websites and advertisements of legitimate auctioneers and banks. The South African Institute of Auctioneers (SAIA) has issued a warning to the public to exercise extreme caution when browsing for second-hand cars, especially on social media platforms.

How the scam works

Scammers create fake websites and advertisements that mimic those of legitimate auctioneers, complete with stolen branding and official-looking WhatsApp business accounts and email signatures. They advertise cars at below-market prices and ask buyers to pay a deposit to reserve the vehicle. However, these cars do not exist, and the scammers disappear with the buyer's money.

According to Sonja Styger, chief administration officer at SAIA, the scams most often originate on platforms like Facebook Marketplace, where cars are advertised well below market value and “reserved” for buyers willing to pay upfront. But buyers should note that under South African law, no auction asset may be sold at a fixed price. Yet these so-called sellers offer vehicles at predetermined prices and press buyers to pay a deposit to avoid the car “going to auction”.

“It’s a blatant red flag as these scamsters know the general public may not understand how auctions work and capitalise on that ignorance. An auction doesn’t have a fixed price; the highest bid when the hammer falls determines the price,” says Styger.

Red flags to watch out for

• Fixed pricing for auction vehicles, which is illegal under South African auction law
• Payment requests via WhatsApp or direct bank transfer
• No verifiable company registration or physical address
• Poorly written ads with vague vehicle information
• No refundable registration deposit- Requests to pay money without physically inspecting the vehicle

To avoid falling victim to these scams, SAIA advises buyers to:

• Stick to SAIA-registered auctioneers
• Check an auctioneer's credentials before engaging
• Verify a company's registration and physical address
• Be wary of deals that seem too good to be true
• Never pay money without physically inspecting the vehicle

SAIA keeps a verified list of trusted members on their website, along with contact details to help verify any social media listing or auction advertisement. If unsure about an advert or auctioneer, buyers can contact SAIA to verify the information.