Consumers selling personal vehicles warned about potential scam

DATE: | News releases

Edmonton… consumers attempting to sell personal vehicle using free classified advertisements are warned about a potential scam involving third party companies who promise to find buyers for a fee.

Some private sellers are reporting that when they place a free classified advertisement to sell their vehicle, a company responds. The company claims to know the buyers interested in this type of vehicle. The company will match these buyers with the seller for a fee. The fee reported ranges anywhere between $400 and $500.

“Legitimate automotive Agent/Broker business must have a licence to operate in Alberta,’ said Alberta Motor Vehicle Industry Council (AMVIC) Executive Director Bob Hamilton. “It appears these companies guarantee they have buyers for your vehicle. That’s just not realistic.”

The companies allegedly offer a partial refund for the fee to the seller if the vehicle dose not sell.

It is an offence under the Fair Trading Act for a business to mislead or deceive consumers. Penalties include a maximum fine of $100,000 and up to two years in jail.

To register a complaint about unlicensed automotive business or deceptive business practices by a licensed business call AMVIC at 1.877.279.8200.