The pre-owned car market can be a minefield of deception. It can sometimes feel like unscrupulous sellers lurk around every corner, ready and waiting to dash the dreams of aspiring vehicle owners. Without a good dose of caution and due diligence, Executive Head of Claims & Claims Support at Momentum Insure, Funeka Ngewu, says that thousands of consumers fall victim to these scams every year – many leading to financial ruin.
“The pre-owned car market is a lucrative industry in our country with many untrustworthy traders flying under the radar,” says Ngewu. “While there’s only so much the insurance industry can do, the best weapon in this fight has always been an educated consumer.”
Ngewu says it is vital to approach every transaction with a healthy dose of scepticism and no short amount of research. To save consumers the heartache, Ngewu provides a few critical tips to help avoid being scammed in today’s pre-owned vehicle market:
When buying a used vehicle
· Get a vehicle history report to reveal accidents, ownership changes, and potential odometer rollbacks. Ensure there are no outstanding loans on the vehicle to avoid legal complications.
“It’s important to ensure that you have the original NaTIS documents for the vehicle to avoid potential legal issues,” says Ngewu.
Conduct a thorough inspection
· Hiring a professional mechanic before finalising the purchase, will help spot hidden issues that you might miss. A professional inspection can uncover problems that may not be immediately apparent to the untrained eye.
· Take a test drive and pay attention to how it drives, any unusual noises, and the condition of the brakes and suspension.
“A test drive is essential to ensure the car performs well under various conditions,” notes Ngewu.
Verify and review credentials and documentation:
· Asking for the seller’s ID and proof of ownership to ensure they have the legal right to sell the car.
· Ensure that the Vehicle Identification Number (VIN) on the car matches the one on the registration documents. Matching VINs is a basic yet essential step to confirm the car’s authenticity.
· Check the service records – a well-documented service history can indicate the car has been well-maintained. Service records provide insights into how well the car has been maintained over the years.
“Verifying the seller’s identity and ownership documents is crucial to avoid buying a stolen or illegally sold vehicle and meeting in a public place. It also adds an extra layer of security to the transaction. Be cautious of sellers who refuse to meet in person, “recommends Ngewu
Seek expert guidance
· If you’re unsure about any aspect of the transaction, seek legal advice. A legal expert can provide clarity on your rights and obligations.
“Legal experts can help you navigate the complexities of the transaction, ensuring you’re fully protected,” suggests Ngewu.
Know what you are covered for
Although you may think you are covered for your new purchase of a used vehicle, Ngewu points to multiple instances an insurance provider is able to refuse cover. These include:
· Pre-Existing Conditions and Misrepresentation: If the seller misrepresented the vehicle’s condition and you didn’t uncover it, your insurance might deny claims or cancel coverage.
· Lack of Disclosure: Not disclosing relevant vehicle history can lead to a rejected claim or policy cancellations. Accurate information is essential for insurers to assess risks.
· Post-Sale Incidents: Insurance coverage ends when ownership transfers. Any incidents after the sale are the new owner’s responsibility.
Ngewu advises all prospective vehicle buyers to stay vigilant, stay informed, and be prepared to walk away if a deal seems too good to be true. “Educating yourself and taking the right precautions can help safeguard your investment and protect you from potential financial ruin. And remember, if you are ever unsure, contact a Momentum Insure expert to get the right advice.”
For more information on protecting yourself from scams, check out Momentum Insure’s Circle of Safety series hosted by award-winning journalist, Mandy Wiener: Episode 1, Episode 2, Episode 3.
INFO SUPPLIED.
