Possible signs of fraud when purchasing a car from a dealership can be spotted by looking at the company’s short operating history, its minimal authorized capital, and the small staff size, along with a push to collect advances from the buyer. These observations were shared with socialbites.ca by Maxim Shelkov, who leads the Avtocriminalist expert center.
One notable red flag is the dealership’s insistence that the buyer must hand over money or sign documents before the final terms of the deal are clearly explained. Before making any down payment, prepayment, or agreeing to register a vehicle for a swap, buyers should pause and await the complete terms of the transaction, then carefully review every document that is prepared. This approach helps ensure there are no hidden obligations tucked away in the paperwork.
Shelkov warned that unscrupulous dealers frequently pressure customers to pay an advance or to leave their current vehicle with the dealer while a loan application is being processed. If a buyer agrees to such terms, it often signals unacceptable loan conditions that will be difficult to rectify later, leaving the customer with a less favorable position.
A prudent step is to request a sample contract from the dealership to study at home. Reputable dealers are typically willing to provide a draft, while scammers are likely to avoid issuing any paperwork at all. It is also important to verify that no pages of the contract are altered during the signing process, and to compare the final document with the preliminary draft to catch any changes.
Buyers should also conduct online research before stepping foot in a showroom. Reading reviews, including negative ones, can offer insights into the dealership’s operating practices and reliability. Attention should be paid to the entity’s date of establishment, the size of its authorized capital, and the number of employees. If the registered capital appears to be very low, such as in the range of ten to fifty thousand rubles, it may raise concerns about the dealership’s seriousness and capacity to sustain larger, long-term operations.
In a broader context, experts note that parallel imports can become very popular models at times, and these vehicles may influence a buyer’s choice. The emphasis on parallel import variants highlights the importance of understanding a dealership’s sourcing strategies and the potential risks or benefits that come with these vehicles.
Overall, the guidance emphasizes taking a cautious, information-driven approach to car buying. Prospective customers are encouraged to gather facts, verify the legitimacy of the business, and insist on transparent terms and written documentation before committing to any purchase. The goal is to help buyers protect themselves from agreements that could leave them financially exposed or trapped by unfavorable lending arrangements. This practical framework remains relevant for anyone considering a vehicle purchase, regardless of brand or model.