Top 7 Car-Buying Scams to Avoid in 2025

Buying a car in 2025 has become increasingly complex as scammers leverage AI and advanced technologies to deceive buyers. Here are the top scams currently circulating in the US automotive market.

1. The "Ghost" Escrow Scam

Scammers create fake third-party escrow services that appear highly professional. They promise to hold your money safely while the car is "shipped" to you. In reality, the website is fake, and once you transfer the funds, both the money and the seller vanish.

2. AI-Generated Listing Fraud

We've seen an explosion of highly realistic but entirely fake online listings created by AI. These listings use perfect grammar and stolen high-resolution photos to lure you into a "urgent sale" scenario.

3. Curbstoning

Dealers posing as private sellers to avoid legal responsibilities and sell "lemons" without disclosure. Always check if the name on the title matches the seller's ID.

4. Title Washing

Moving salvage vehicles between states to "clean" the title. This is why a comprehensive VIN check is mandatory before any transaction.

5. The Virtual Vehicle Scam

Sellers who claim to be military personnel or working abroad, offering a vehicle at an unbeatable price because they "need to sell it quickly before deployment." They ask for payment via untraceable methods like gift cards or wire transfers.

6. VIN Cloning

Sticking a legitimate VIN from a similar vehicle onto a stolen or totaled car. Always verify the VIN in multiple locations on the chassis.

7. Deposit Fraud

Asking for a small "holding deposit" to see the car because there is "so much interest." This is almost always a scam to harvest hundreds of dollars from multiple victims simultaneously.