Auto Loan & Vehicle Purchase Scams: What to Watch for Before You Buy

Shopping for a vehicle, whether it’s your first car, an upgrade, or a surprise Valentine’s gift, should be exciting.

Unfortunately, scammers know this is a popular time for auto purchases and financing, and they take advantage of buyers looking for quick deals.

Understanding common auto-related scams can help you protect your money and personal information.

Common Auto Purchase & Auto Loan Scams

• Fake Vehicle Listings
  • Scammers post vehicles online at prices well below market value.  They may claim the car is in high demand or located out of town and request a deposit before you can see it. Once payment is sent, the seller disappears and the car never existed.
• Fraudulent Auto Loan Offers
  • You may receive emails, texts, or ads claiming you’re “pre-approved” for an auto loan with exceptionally low rates. These scams often ask for upfront fees or personal information before providing any loan details.
• Impersonation Scams
  • Some fraudsters pose as dealerships, lenders, or even Financial Institution employees. They may use familiar logos or names to appear legitimate while directing you to unofficial websites or payment methods.
• Pressure Tactics
  • Scammers create urgency by claiming a deal will expire immediately or another buyer is waiting, pushing you to act before verifying the details.

How to Protect Yourself When Buying a Vehicle

• Never send money or personal information before verifying the seller or lender
• Be cautious of prices or loan offers that seem too good to be true
• Avoid paying deposits of fees through wire transfers, gift cards, or peer-to-peer apps
• Work directly with trusted dealerships and NGFCU for financing

NGFCU is Here to Help

We offer trusted auto loan options and guidance to help you finance your vehicle safely. Members can also use TrueCar, a trusted car-buying platform, to shop for new and used vehicles with upfront pricing and a more secure buying experience. If you’re unsure about a listing, or payment request, contact us before moving forward.

A little caution can help ensure the only thing you drive away with is your new car, not a costly scam.