Point of view: avoiding scams when buying a second-hand car in South Africa

A friend of mine is looking to buy a new set of wheels, something modest, second-hand, and reliable enough to handle Jozi's stop-start traffic and the odd weekend road trip. The excitement is palpable. I mean, who doesn't get amped about the freedom of finally having your own car? But in this economy, with dodgy deals popping up, buying a used car has become a risky affair.

From fly-by-night online dealers to scams that vanish with your deposit and dreams, the second-hand market isn’t what it used to be. Shir Amram from Montana Capital Car Title Loans has seen the mess left behind, buyers out of pocket, scrambling for emergency loans just to recover from a financial knock they didn’t see coming.

Here are seven red flags that Amram says could save you, or your bestie, from turning that dream car into a costly regret:

The seller refuses an in-person viewing

If the seller’s got excuse after excuse about why you can’t see the car, it’s "in Cape Town", "with an uncle", or “being serviced”, it's likely because the car doesn’t exist. No legit seller would stop you from inspecting the vehicle yourself.

The price is ridiculously low

A 2021 Toyota Corolla listed at half the market price? Don’t let your wallet override your common sense. A bargain that looks too good is probably bait.

No V5C logbook or sketch service history

In SA, paperwork matters. No logbook? No detailed history? It’s a massive no-go. These documents prove the car’s ownership and whether it’s been properly looked after.

Pressure to "buy now"

Scammers thrive on urgency. “Another buyer is interested” or “Offer expires today” are tactics to stop you from thinking things through. A genuine seller won't rush you into making a financial decision you're not ready for.

Pay now, collect later

This scam is brutal. You EFT the cash, and suddenly the seller’s ghosting you. Amram puts it best: “No car, no cash.” Simple as that.

Warning lights "fixed" with last-minute resets

Some fraudsters reset the car’s system before the viewing to hide engine faults. Ask the seller about any recent issues, and if they dodge, it’s your cue to bounce.

Mileage that doesn't add up

Clocking still happens. If the mileage looks great but the car’s interior tells another story, trust your gut. Dodgy sellers tamper with odometers to up the car’s value and hide years of wear.

Amram said it plainly: scammers are levelling up. But your ability to spot red flags and walk away is your power. Look, I get it, buying your first car, or even upgrading, is meant to feel like a step forward. But the truth is, if you're not careful, it can set you back in ways that take years to recover from.

So to my friend, and anyone else in the market, do your homework. Compare prices, ask questions, verify paperwork, and don’t hand over a cent until the car’s in your sight and the deal makes sense. Above all, trust your instincts. They're louder than any engine warning light.

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* Maleke is the editor of Personal Finance.

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