There are ways to protect yourself from becoming a scam victim from sellers posing as car dealers online.  The Wisconsin Department of Transportation (WisDOT) has noted that there has been a troubling increase in reported scams involving vehicle sellers posing as car dealers online.  The DMV describes the scam as an individual creating a website or social media profile with photos of vehicles and claiming to be a Wisconsin dealership.  The scammer then advertises the car at a market value below market value to create interest and conducts the transaction without having an in-person meeting.   The scammer stops all contact after receiving a wired transfer of the agreed purchase price from the victim.  Stefon Gerlei of Patriot Motors in Sturgeon Bay says legitimate dealers and consumers are subject to scams.  He notes that someone who uses a stolen identity with credit references buys a dealer's vehicle listed online, typically sending a 20 percent down payment.  After financing is done and the car is shipped, the scammer defaults on the loan, leaving the dealer/lender on the hook.

If you have been a victim of a scam involving a motor vehicle, you should file a complaint with WisDOT and consider filing a police report with your local law enforcement agency. Nine tips for keeping safe while buying a vehicle are listed below. 

·         Watch for numerous spelling or grammatical errors on the seller’s website or manipulated photos of a business or vehicle. This could tip you off to a cloned dealer site or unprofessional (and possibly unscrupulous) dealer.

·         Research the dealership ahead of time including verifying phone number, address, email and other contact information.

·         Review WisDOT’s active dealers list to verify licensed dealers, wisconsindmv.gov/dealerlist. The list includes motor vehicle dealers and motorcycle dealers who are properly licensed to sell. This list is updated daily and readily available to the public.

·         Review vehicle purchasing information on WisDOT’s website.

·         Visually inspect the vehicle before buying and inspect the required Wisconsin Buyer’s Guide.

·         Ensure the selling dealer uses a Motor Vehicle Purchase Contract as required by Wisconsin law.

·         Refrain from sending money by purchasing gift cards or other suspicious payment methods encouraged by the seller.

·         If you wish to make a wire transfer to the seller’s bank, independently verify the bank’s contact information. You may inform the bank you wish to verify the legitimacy of the seller before sending a wire transfer.

·         If something doesn’t feel right, walk away from the purchase.