Used car scams: fake adverts, deposits and escrow

Almost every used car scam needs you to pay before you have seen the car, the seller and the paperwork together. So the simplest protection is a rule you do not break: no deposit, no transfer and no "holding fee" until you have viewed the car at the seller's address and checked the V5C. If you have already paid and think it was a scam, call your bank straight away, then report it to the police. Many bank transfer scam victims can now get their money back.

Scammers change the story, but the patterns repeat. Here are the ones to know.

The fake advert and the deposit

The car is real, in the sense that the photos are of a real car. The advert is not. The price is attractive, and when you get in touch the "seller" has a reason you cannot see it yet: they are working away, the car is in storage, or other buyers are lined up. They ask for a deposit to hold it. After you pay, they disappear.

The tell: pressure to pay before a viewing, and a reason why the viewing cannot happen yet.

What to do: do not pay a deposit for a car you have not seen. A genuine private seller will wait for you to view. If a dealer asks for a deposit, check the business exists at a real address, pay by card, and get the terms in writing.

The overseas seller and the delivery company

The seller says they have moved abroad, or are in the forces, and the car is being held by a shipping or delivery company. You pay the delivery company, and the company will bring the car to you, with a "return period" to make you feel safe. The delivery company is part of the scam.

The tell: you cannot see the car or meet the seller, and payment goes to a third party.

What to do: walk away. A car you cannot see before paying is not a car you can safely buy.

The fake escrow service

Escrow is where a third party holds the money until both sides are happy. Scammers set up convincing escrow websites, or send emails that appear to come from a well-known payment service, to make a transfer feel protected. The money goes straight to the scammer.

The tell: the seller insists on a payment service you did not choose, and sends you the link.

What to do: never use a payment service the seller suggests. If you want buyer protection, choose the method yourself and go to its website directly, not through a link.

The cloned car sale

This one involves a real car, which is stolen and wearing the identity of a legal car of the same model. The paperwork may look genuine. You meet the seller, see the car and pay. Later, the police take it back.

The tell: a low price, a seller who will not meet at the V5C address, and a VIN on the car that does not match the logbook.

What to do: do the VIN and V5C checks in our guide to cloned cars, and run a vehicle history check before you pay. Our guide to stolen car checks has the full list.

Scams when you are selling

Sellers are targets too.

• Overpayment. The buyer "accidentally" pays too much, by cheque or a transfer that later reverses, and asks you to send the difference back. The original payment fails and your refund is gone.
• Fake payment proof. The buyer shows a screenshot or a banking app screen saying the money has been sent. Do not release the car or the keys until the money has cleared in your own account, checked in your own banking app.
• The "agent" or "courier". A buyer who cannot come in person sends someone to collect, after a payment you cannot verify.
• The test drive that does not come back. Go with the buyer, keep the keys when you are not in the car, and check their driving licence.

Paying safely

• Pay only after the viewing, at the address on the V5C, once the checks are done.
• Pay the person named on the paperwork. If the name on the bank account does not match the seller, stop and ask why. Your bank may show a name check result when you set up the payment. If it says the name does not match, take it seriously.
• Settle finance properly. If the car has outstanding finance, pay the lender directly using details you found yourself. Our guide to outstanding finance explains how.
• Get a receipt with the date, the price, the registration, the VIN, and both names and addresses, signed by the seller.

If you think you have been scammed

Call your bank first

Call the number on the back of your card, or call 159, which connects you to many UK banks' fraud teams. Tell them it was a scam and ask them to try to stop or recover the payment. Speed matters.

Ask for reimbursement

Since 7 October 2024, payment firms must reimburse most victims of authorised push payment (APP) scams. These are scams where you were tricked into sending money by bank transfer. The rules cover payments by Faster Payments and CHAPS between UK accounts. At the time of writing:

• the maximum reimbursement is £85,000 per claim
• you must claim within 13 months of the last payment to the scammer
• your bank can apply an excess of up to £100, though not for vulnerable customers
• most claims should be settled within five business days

There are exceptions, for example if you were grossly negligent or were party to the fraud. Check the regulator's current rules before you claim. Card payments are not covered by these rules, but your card provider may be able to help through its own process.

Report it to the police

In England, Wales and Northern Ireland, fraud and cyber crime are reported to Report Fraud, which replaced Action Fraud in December 2025. You can report online or by phone on 0300 123 2040. In Scotland, contact Police Scotland on 101. Keep the advert, the messages, the payment details and any names and numbers the scammer used.

Frequently asked questions

Should I pay a deposit to hold a used car?

Not to a private seller before you have seen the car. A genuine seller will let you view first. If a dealer asks for one, check the business, pay by card and get the terms in writing.

Will my bank refund me if I was scammed buying a car?

If you paid by bank transfer and were tricked, you are likely to be covered by the APP reimbursement rules, up to £85,000 at the time of writing. Claim within 13 months of the last payment, and call your bank as soon as you can.

Where do I report a car scam?

Report it to your bank first, then to Report Fraud in England, Wales and Northern Ireland, or to Police Scotland on 101 in Scotland.

Is it safe to buy a car without seeing it?

It is the setup most car scams depend on. See the car, at the seller's address, with the V5C, before you pay anything.