It’s a wild world out there in the used vehicle market right now. Used cars in Alberta are scarce and expensive due to several factors, including increased demand driven by economic growth, supply chain disruptions affecting new car production, and inflation. The global semiconductor shortage has slowed down the manufacturing of new vehicles, pushing more buyers toward the used car market. In addition, Albertans tend to have more disposable income than other Canadians, which leads to higher competition for available cars, which then ends up driving prices up.
It is definitely a “seller’s market” right now for used vehicles, however we at Lane’s are keenly aware of how difficult it can be to find a good option, no matter what the climate is. This is why we have worked to provide used car purchasing resources for buyers. Our tips include doing your research, trying to find a vehicle through word-of-mouth, getting a trusted mechanic to check the vehicle, and absolutely, for sure, taking it for a good test drive and noting any problems. A seller that is trustworthy should be willing to work with you to get any issues solved before the sale goes through.
Unfortunately, however, although it is a “seller’s market,” those trying to find the right buyer for their vehicle are also facing some significant challenges. Sellers should watch out for a recent scam to protect themselves and their identities.
Beware of vehicle history requests
Kijiji is by far the most popular place to sell a vehicle online, but unfortunately it is a haven for scam artists and ne’er-do-wells. Forums such as Reddit have been warning those selling their vehicles of a particularly sneaky swindle that preys on those simply looking for a good buyer.
The warning is this: be cautious of those who try to trick you into purchasing vehicle history reports from unknown websites.
If you are flooded with interest from a number of different “buyers,” be wary. If they are all asking for a vehicle history report, be very, very cautious, especially if they want the report from a company other than the known and respected Carfax. If you are unsure of the complete history of your vehicle, it’s a good idea to get a report, but only use accredited sites such as Carfax and do not allow yourself to be bullied into going to a different source.
These fraudulent websites appear professional and legitimate, but are scams aimed at collecting credit card details. Scammers will try to establish a relationship through texts and seem eager and interested in buying the vehicle before requesting the report.
A good sign is if the first thing the site asks for is your credit card information (before even the VIN). Do not click on anything and close the window.
A CBC article quotes Jeff Horncastle of the RCMP’s Canadian Anti-Fraud Centre, who confirms these websites are convincing and urges people to research thoroughly before entering any personal or financial information. He cautions that scammers often manipulate search engine results to make their fraudulent sites appear credible.
The vehicle history report scam is part of a growing trend in vendor fraud across Canada. AutoTrader has since published warnings about the scam, advising users to rely on Carfax for their reports through its partnership.
Other signs of a fraudster:
- They only want to communicate through email or text, not phone calls, and often want to take their “business” off Kijiji (or other sites) entirely.
- They will provide elaborate (and strange) stories explaining why they can’t complete the transaction in person.
- They will tell you more than you want to know about them.
- They will offer to pay more for the vehicle than advertised without even seeing it.
- They will ask to pay by cheque, which turns out to be counterfeit.
- They will send fraudulent electronic payment notifications/receipts. Sellers should contact the payment service provider directly to confirm their legitimacy.
Reminder to buyers about insuring and registering a used car
In Alberta, you must insure and register a used car before driving it. There is no specific grace period, so technically you are required to have valid insurance and registration in place immediately after purchasing the vehicle. This may not be possible, so another option is to speak with the seller and ask that they do not cancel their insurance before you are able to obtain yours. Remember you’ll need proof of insurance to in order to complete the registration process.
There are no temporary options available, however Alberta does provide a special in-transit permit for vehicles without valid registration and licence plate. This allows you to use an existing plate and registration for up to 14 days; however, it does not include vehicle insurance, so it’s important to work on that first.
Identity theft insurance
We all make mistakes. If you find yourself caught in a scam and don’t know what to do, definitely call your local police service’s non-emergency number to report what happened. Don’t be ashamed or nervous. You are doing a good thing. It’s imperative that law enforcement agencies know as much as possible about these sorts of scams so they can work on putting a stop to them.
In this modern digital world full of opportunists, identity theft insurance is a very good idea for anyone doing any sort business online regularly. Cleaning up after an incident of identity theft can be extremely expensive and may even require litigation. Identity theft insurance is often included in home insurance and generally includes coverage for expenses incurred when recovering your identity (such as for retaining legal counsel), and for any financial loss you may have experienced. Some policies also include credit bureau monitoring. Your claim will be handled by a case worker trained specifically in identity theft and its complicated, multi-layered fallout.
Lane’s Insurance covers Alberta
Lane’s Insurance works for you, not the insurance companies. We believe that customer service is still important to people, and work with numerous carriers to meet your coverage needs. As proud members of the Independent Insurance Brokers Association of Alberta, we are pleased to serve homeowners and business owners throughout Alberta. Contact us at:
- Our Calgary office
- Our Edmonton office
- Our Banff office
- Serving the rest of Alberta
