Used Car Scams in the UK: 8 Common Tricks and How to Avoid Them

The used car market in the UK is worth over £100 billion per year. Where there is money, there are scammers. From clocked mileage to phantom cars, these are the eight most common scams and exactly how to protect yourself.

1. Clocking (Odometer Fraud)

What it is: The seller winds back the mileage on the odometer to make the car appear less used. A car showing 40,000 miles might actually have 100,000. This increases the car's apparent value and hides wear.

How to spot it:

• Check the MOT history at gov.uk/check-mot-history — mileage is recorded at every MOT. If the mileage goes down or jumps suspiciously, it has been clocked
• Look at the wear — a 40,000-mile car should not have a heavily worn steering wheel, seat bolsters, or pedal rubbers
• Run a SortedCheck to see recorded mileage across multiple data sources

2. Cloned Cars (Stolen Identity)

What it is: A stolen car is given the identity of a legitimate car of the same make, model, and colour. New number plates are fitted, and the VIN plates may be swapped. The V5C may even look genuine because it was obtained fraudulently from the DVLA.

How to spot it:

• Check the VIN in multiple locations: windscreen, door pillar, engine bay, and V5C. They must all match
• Run a SortedCheck for stolen markers
• Check the V5C details match the actual car (colour, engine size, date of registration)

Read our full guide: How to Spot a Cloned Car — 7 Red Flags.

3. The Escrow Scam

What it is: The seller insists on using an "escrow service" to hold your payment until delivery. The escrow site is fake — created by the scammer. You send money to what looks like a legitimate payment service, and it goes straight to the fraudster.

How to spot it:

• The seller insists on a specific escrow service you have never heard of
• The website looks professional but was recently created (check domain age at whois.com)
• You cannot find independent reviews of the escrow service
• Rule: Never use an escrow service suggested by the seller. Only use established payment methods

4. The Phantom Car (Deposit Scam)

What it is: A car is advertised at a great price. The seller asks for a deposit to "reserve" it before you view it. Once the deposit is paid, the seller disappears. The car may not exist at all, or the photos were stolen from a legitimate listing.

How to spot it:

• The price is significantly below market value
• The seller has an excuse for why you cannot view the car yet ("it's being serviced", "I'm away but can ship it")
• They insist on a deposit before any viewing
• Rule: Never pay a deposit before seeing the car in person

5. Curbsiding (Unlicensed Dealer as Private Seller)

What it is: A dealer or trader sells cars as a "private seller" to avoid Consumer Rights Act obligations and dodge tax. They may have multiple cars listed under different names or from different locations.

How to spot it:

• The seller has multiple cars listed on the same platform
• They seem very experienced in the selling process
• The location is a commercial premises or car park, not a home
• They refuse to give you their home address or won't meet there

6. The Bank Transfer Trick

What it is: The buyer (yes, this scam targets sellers too, or is used between buyer and seller) sends a fake bank transfer confirmation screenshot showing the money has been "sent." The seller hands over the keys. The money never arrives because the screenshot was fabricated.

How to protect yourself:

• Never rely on a screenshot — log into your own bank app or online banking to confirm the money is in your account
• For large amounts, call your bank to verify the transfer has cleared
• Faster Payments typically arrive within minutes, but always verify in your own banking app

7. The Test Drive Theft

What it is: Someone contacts a private seller, asks for a test drive, and drives off with the car — never to return. Sometimes they use a distraction (an accomplice talks to the seller while the other drives away).

How to protect yourself:

• Always go with the buyer on the test drive
• Photograph their driving licence before the test drive
• Keep the spare key with you
• Meet at your home, not a remote location

8. The "My Mate Will Collect" Scam

What it is: The buyer pays for the car (sometimes with a stolen bank card or fraudulent transfer) and says "my friend will collect it." The friend arrives, takes the car, and the payment is later reversed or found to be fraudulent.

How to protect yourself:

• Only hand over the car to the person who paid for it
• Verify identity against the payment details
• Wait for the money to fully clear before releasing the car (especially for CHAPS or international transfers)

Final Thoughts

The vast majority of used car transactions in the UK go smoothly. But the stakes are high enough that basic precautions are essential. Run a vehicle history check, never pay before viewing, verify the VIN matches the V5C, and trust your instincts. If a deal feels too good to be true, it is.

If you believe you have been the victim of a car scam, report it to Action Fraud and seek legal advice.