FBI Warns Online Shoppers of Auto Sales Scams

New York — It's another case of "if it sounds too good to be true, it probably is."
The FBI is warning online auto shoppers to watch out for deals that offer cars at very low prices, then direct unwitting buyers to phony websites designed to separate victims from their money. The agency says more than $44.5 million was stolen through such scams from 2008 to 2010.

The scam

The agency said there are variations on the scheme, but the basic version involves a seller placing an ad on a legitimate website like Craigslist for a car at a below-market price. However, when an interested buyer responds via email, the return email often includes a story of hardship explaining why the price is so low — the seller lost his job, there's a health care emergency or even that the seller is being deployed by the military.

The email also includes a request to move the transaction to another website for security reasons, yet at the same time offers fake "buyer protection" through another company, often identified as eBay Inc. The seller may also pose as a representative of a legitimate company in a live online chat, and will send a real-looking invoice that purports to be from eBay or another major site.

The return email will also ask the consumer to wire the money to pay for the vehicle, and sometimes to fax a receipt showing when that transaction has taken place. The parties then agree on a time and place to deliver the vehicle — but it never arrives.

The red flags

The FBI lists a series of warning signs that the sale is a scam on its website, www.fbi.gov.

Car shoppers should watch out for deals with ultra-low prices, sellers who want to switch websites, claims that buyer protection is available from a website not involved in the transaction, and sellers who won't meet in person to allow the buyer to see the car ahead of time.

Also beware of hard-luck stories that seemingly explain why the car is such a good deal.

And any sale that requires funds to be wired ahead of time should be a big warning sign. Once funds are wired, there is no way to retrieve them.

A bluntly worded warning posted on the "Cars & Trucks" page on Craigslist warns consumers against having a vehicle shipped to them. "Offers to ship a vehicle are virtually 100 percent fraudulent," the site states, and adds that customers should "never use Western Union or a wire transfer to pay for goods — only a scammer will ask for this, and any funds sent will be lost."
The victims

There were nearly 14,000 complaints submitted to the FBI by consumers who have been targeted or fallen for this type of scam between 2008 and 2010.
Jack Christin, associate general counsel at eBay Inc., said the online auction company sees the scammers as "hijacking the eBay name." The company has placed an alert on the top of www.ebaymotors.com warning consumers that their vehicle purchase protection only covers transactions completed on their site. If a seller from another site promises eBay protection programs, the warning says, "Walk away. It is fraudulent."
The eBay Motors Security Center also offers tips for safe online car buying and links to report suspected fraud to the company and the Internet Crime Complaint Center, which is operated by the FBI and other government agencies.
From The Detroit News: http://detnews.com/article/20110912/AUTO01/109120397/FBI-warns-online-shoppers-of-auto-sale-scams#ixzz1Xr3oc21i

Buick Verano pricing to start at $23,470

DETROIT -- The price for the upcoming Buick Verano, the brand's first compact in decades, will be $23,470, including shipping charges, General Motors said today.
The price is considerably lower than the Japanese compact sedans that GM is pitting the Verano against in the entry-luxury segment: the Acura TSX ($30,495 with shipping) and the Lexus IS 250 ($34,170 with shipping).
"Given some of the great features the car is going to have, that's about the price we expected," said Sam Slaughter, dealer principal at Sellers Buick-GMC in suburban Detroit, which was the nation's top-selling Buick store last year. "We don't want it to be the el cheapo car that's going after the beer-can market."
Still, the Verano price is "going to be a little tight" with that of the Regal mid-sized sedan, the next car up in Buick's lineup, said Lynn Thompson, a Springfield, Mo., dealer who sells Buick, GMC and Cadillac. The base Regal has a sticker price of $27,530, including shipping.
The Verano, which goes on sale by year end, will be offered in three models. The top model will have a sticker price of $26,850 including shipping. All three models will get a 2.4-liter, four-cylinder engine combined with a six-speed automatic transmission that delivers 180 hp.
The Verano is hitting the market at a time when more U.S. consumers are shifting to smaller, more fuel-efficient vehicles.
GM has touted the Verano's quiet cabin and standard features not typically found on a car in its price range, such as a 7-inch color-touch radio display with IntelliLink, the infotainment system for Buick and GMC.
Higher-end Verano models will receive the same leather used in Buick's flagship LaCrosse sedan, and touches such as push-button start, a heated steering wheel and heated seats that activate automatically in colder temperatures.
The Verano "expands the brand's reach," Tony DiSalle, Buick's U.S. vice president of marketing, said in a statement. "We're inviting new customers into the Buick family, giving us the opportunity and privilege of building longtime Buick loyalty."
GM hopes to build on the success of the Chevrolet Cruze compact, which is built on the same platform as the Verano. The Cruze, which replaced the Cobalt in Chevy's lineup last fall, was the top-selling U.S. compact sedan in July and August.
The Cruze starts at $17,470, including shipping.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20110906/OEM04/110909908/1490#ixzz1XCyQjjJn