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Buying & Selling 📅 Updated 29 May 2026 ⏱ 10 min read Skim it in 60 seconds (see red-flag box)

11 used car scams catching Australians out right now (and the $2 check that beats most of them)

Buying or selling a used car is one of the biggest private deals most people ever make, and scammers know it. Here are the 11 most common tricks catching Australians out, and the simple checks that protect you. Every figure is sourced.

11 used car scams in Australia. A buyer and seller awareness guide from My Driving Trainer.

⚠ Heads up:

Australians lost a reported $2.18 billion to scams in 2025 (ACCC). Used car scams are a fast-growing slice, and the tricks have evolved.

A $2 government check stops most of them. The rest come down to a handful of habits below. Five minutes of reading here can save you thousands.

$2.18bTotal reported scam losses in Australia in 2025 (ACCC)
$55,000Maximum court penalty for odometer tampering in NSW (NSW Govt)
$2Cost of the official PPSR check that beats most of these scams

The 60-second red-flag check

If a deal has even two of these signs, walk away:

Scams that target buyers

1The fake listing with stolen photos

Scammers copy photos and details from a genuine advert and repost the car at a tempting price on Facebook Marketplace, Gumtree or Carsales. The car does not exist, or the person advertising does not own it. WA ScamNet reports receiving multiple complaints from buyers who enquired about cheap vehicles online only to find themselves dealing with scammers.

Protect yourself: Reverse image search the photos. If the same pictures appear on other listings in other cities, walk away. Never send a deposit on a car you have not physically seen.

2The "too good to be true" price

A car priced thousands below market value is the classic bait. Consumer guidance from lenders including Greater Bank and Newcastle Permanent lists an unrealistically low price as the single most common red flag, because it lowers your guard and creates urgency.

Protect yourself: Check the model's normal price range on Carsales or Redbook first. If a car is far below that, ask why, and be sceptical of the answer.

3The "I'm interstate or overseas" seller

The seller claims they have moved, are in the military, or are working abroad, so the car is "with a courier" or "in storage" and cannot be inspected. Greater Bank's consumer guidance flags any seller who refuses an in-person inspection as a likely scam.

Protect yourself: Treat "I can't show you the car in person" as an automatic no. Genuine sellers want you to see the car.

4Odometer rollback (winding back the kilometres)

Scammers use cheap software to wind back a car's odometer by tens of thousands of kilometres, making a worn car look low-mileage. NSW strengthened its laws from 1 September 2025: on-the-spot fines for odometer tampering rose to $5,500, with maximum court penalties of $55,000 per offence. NSW Fair Trading has reported a four-fold increase in tampering and one offender wound a car's odometer back by more than 200,000 km.

Protect yourself: In NSW, use the free Service NSW odometer check, which shows the last three annual readings. Cross-check the dashboard against the service history, and see whether wear on the seat, pedals and steering wheel matches the claimed kilometres.

5The undisclosed written-off vehicle

A car written off in a crash or flood is repaired and sold without disclosure. Buying one can void your insurance and leave you with a car worth far less than you paid. State tools now help: Victoria's VicRoads Vehicle Report and NSW's vehicle history report both show whether a car has been written off, alongside registration and roadworthy history.

Protect yourself: Run a PPSR check (see the box below), which confirms written-off and stolen status, and add a state vehicle history report where available.

6The car with money still owing on it

If the seller still owes finance on the car, the lender can repossess it even after you have bought it, because the debt attaches to the car, not the person. A $2 PPSR check would have revealed this in seconds.

Protect yourself: A $2 PPSR check shows whether finance is owing. If there is debt, get a finance payout letter and only proceed once it is officially discharged, or walk away.

7Curbstoning (unlicensed dealers posing as private sellers)

An unlicensed dealer poses as a private seller to dodge consumer-law obligations and taxes, often offloading cars with hidden faults. Because the sale looks "private", you lose the statutory protections that come with buying from a licensed dealer. In the NSW crackdowns, several offenders were caught selling many cars while unlicensed, one of them 16 vehicles.

Protect yourself: Ask to meet at the seller's home. Check the name on the registration matches their ID. If one person is selling several cars or dodges ownership questions, treat them as a commercial seller operating off the books.
Scams that target sellers

It is a myth that only buyers get scammed. Here are the scams aimed at people selling a car.

8The fake vehicle history report site

A "buyer" says they will come and see your car, but first asks you to buy a history report from a specific website they "trust", often for a small fee like $9. The site is a fake clone of a government or history-check provider, built to harvest your card details. Carsales has published a specific warning about this scam, and Scamwatch has flagged the broader pattern.

Protect yourself: Never buy a report from a link a stranger sends you. If you want to provide a history report, get it yourself from the official PPSR site (ppsr.gov.au) or your state transport authority.

9The PayID "upgrade" or "business account" scam

A fake buyer claims they have paid via PayID, then you receive a spoofed email saying your account needs to be "upgraded" and you must send money to "unlock" the funds. PayID's operator, Australian Payments Plus, has confirmed it will never ask you to send money to receive money.

Protect yourself: PayID never requires you to send money to receive money. Any message saying otherwise is a scam. Only trust funds you can see cleared in your own bank account.

10The overpayment refund scam

The buyer "accidentally" pays more than the agreed price, sends a fake receipt as proof, and asks you to refund the difference. Days later your bank reverses the original payment, which never really cleared, and you are left out of pocket. WA ScamNet documents this exact pattern.

Protect yourself: Never refund an overpayment until the original payment has genuinely cleared in your account. A receipt or screenshot is not proof of payment.

11The off-platform, no-phone-call buyer

The scammer quickly tries to move the conversation off the marketplace to email, SMS or WhatsApp, and refuses to talk on the phone, because text gives them total control of the deception. Newcastle Permanent's consumer guidance lists refusal to speak on the phone, and pressure to move off-platform, as key warning signs.

Protect yourself: Keep communication and payment on the platform where possible. Be wary of any buyer who will not take a call and wants to rush everything online.

The one check that stops most of these: the $2 PPSR

The Personal Property Securities Register (PPSR) is the Australian Government's official register, run by the Australian Financial Security Authority. For $2 at ppsr.gov.au you can check whether a car is recorded as stolen, written off, or has finance owing on it. It is the single most cost-effective protection a buyer has, and the Government actively promotes it for first-car buyers.

Two limits to understand: the PPSR does not show odometer readings, and it only shows cars that have actually been reported (so a freshly stolen car may not appear yet). Use it alongside a state vehicle history report and an independent inspection, not instead of them. Be aware too that there is no genuinely free official VIN check in Australia; sites advertising "free VIN checks" are often the scam.

The seven habits that beat almost every car scam

If something does go wrong, stop contact immediately, call your bank straight away (the sooner you act, the better the chance of recovering funds), and report it to Scamwatch at scamwatch.gov.au. Reporting helps protect the next person.

Buying a used car in Adelaide or anywhere in South Australia

The scams above apply nationally, but a few local notes help if you are in SA. The free rego check at sa.gov.au confirms registration and the recorded odometer reading. The RAA offers pre-purchase mechanical inspections across metro Adelaide and most regional areas, which is the easiest way to get an independent check. For SA-specific scam reports, contact Consumer and Business Services (CBS) South Australia. New to driving as well as buying? Our Adelaide driving lessons cover both.

Frequently asked questions

What is the most common used car scam in Australia?

The most commonly reported used car scam is the fake listing, where scammers copy photos and details from a genuine advert and repost the car at a tempting price on Facebook Marketplace, Gumtree or Carsales. The car does not exist or the seller does not own it. Always inspect a car in person before paying any money.

How do I check if a used car has finance owing on it in Australia?

Use the official Personal Property Securities Register at ppsr.gov.au. A $2 search will tell you whether the car has finance owing, has been recorded as stolen, or has been written off. If the seller still owes finance, the lender can repossess the car even after you have bought it and put it in your name.

Is the $2 PPSR check enough to protect me when buying a used car?

The $2 PPSR check is the single most cost-effective protection a buyer has, but it has limits. It does not show odometer readings and only flags cars that have actually been reported (so a freshly stolen car may not appear). Use it alongside a state vehicle history report and an independent pre-purchase inspection from a motoring body like the RAA, NRMA or RACV.

What is the penalty for odometer tampering in Australia?

In NSW, from 1 September 2025, on-the-spot fines for odometer tampering are $5,500 with maximum court-ordered penalties of $55,000 per offence. Other states have their own penalties, with maximum court penalties in some states reaching higher figures. Odometer tampering remains common: NSW Fair Trading reported a four-fold increase across 2021 and 2022.

How do I avoid being scammed when selling my car on Facebook Marketplace?

Never accept payment without confirming the funds have actually cleared in your own bank account. Receipts and screenshots can be faked. Be wary of buyers who refuse phone calls, push you off the platform to email or SMS, send you links to verify your account, or claim they paid more by accident and ask for a refund of the difference.

Is the PayID upgrade message real?

No. PayID never requires you to send money to receive money. Any message claiming your account needs to be upgraded or business verified, and asking you to send money to unlock incoming funds, is a scam. Australian Payments Plus, PayID's operator, has confirmed it will never make such requests.

Keep learning

Just bought a car and now driving in Adelaide? Read our guide on where AI cameras are watching in Adelaide and where the next ones are coming, so you do not pick up a $680 fine in the first week.

Sources

This article draws on government, regulator, industry and news reporting. Figures are accurate to the best of our knowledge as at May 2026 and may change. Always verify current information directly with the official sources below. This is general information, not legal or financial advice.