Investigation: Beware of auto and motorcycle purchase scams
This page is translated from the original post "Enquête : attention à l’arnaque à l’achat auto et moto" in French.
- 14/02/2023 11:45
Repression of Fraud warns consumers about the most common scams when buying cars and motorcycles.
The DGCCRF, or Directorate General for Competition, Consumer Affairs and Fraud Repression, alerts about dishonest practices, or even scams by auto and motorcycle dealers and sellers.
Following an investigation into new and used vehicle sellers, whether cars or two-wheeled motorized vehicles, the Fraud Repression found that more than 64% of them do not comply with standards. This notably concerns transparency of information for the consumer when purchasing the vehicle.
Some vehicle sellers, auto and motorcycles included, added optional services into the selling price, either without informing the buyer or by making them mandatory. This can increase the vehicle’s price by up to €1,200 above its original price.
What are the most common auto purchase scams?
Moreover, the investigation revealed used vehicles presented as new or first-hand. Important information (date of first registration, history, mileage, origin) is often omitted from the used vehicle label. The odometer, which shows the number of kilometers, is also frequently manipulated, with discrepancies of up to 121,000 km less than the actual mileage.
The DGCCRF also highlighted the deceptive practice of selling accident-damaged vehicles without warning clients in advance.
The study also found compliance issues related to financing, especially concerning consumer credits contracted by buyers. Dishonest sellers offered financing credits whose obligations were not always clearly stated and sometimes skewed in favor of the professional.
Some even made the subscription to consumer credit mandatory in exchange for an additional commercial guarantee. The interest rates were higher than comparable bank loans.
What does the law say about mandatory services?
The regulation stipulates that the preparation costs for new vehicles, included in the sale price, are limited to these services:
- Washing the bodywork;
- Polishing;
- Checking fluid levels;
- 5 liters of fuel;
- Provision and fitting of a set of license plates.
Any other service is optional. The DGCCRF has issued over 1,600 warnings, 1,500 injunctions, and 490 fines. It emphasizes that many of these sellers have been negligent and have quickly come up to standard.
Additionally, the DGCCRF asks consumers to report any future violations or scams on SignalConso so it can continue investigating these bad practices.
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