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How to avoid used-car scams in Australia

The common used-car scams in Australia and how to avoid them — fake escrow and deposit scams, odometer wind-back, curbstoning, cloned listings and cars with money owing — plus how to pay and meet safely.

By The MotorLoop team · Last updated 16 July 2026

This is a platform comparison. General information gathered from public sources — pricing, features and policies change, so check each platform’s own site before deciding. Full note

Most used-car scams rely on rushing you and getting money before you've seen the car or checked its history. Slow down, do the checks, and you'll sidestep nearly all of them.

Watch out

The golden rules: never pay for a car you haven't seen in person, never send a deposit to "hold" a car, run a PPSR check before you pay, and pay in a way you can trace. If a deal only works if you act right now, it isn't a deal.

Fake deposit and "escrow" scams

The seller has a plausible reason they can't meet — overseas, deployed, moving — and asks for a deposit or full payment through an "escrow service", a shipping company, or gift cards or vouchers. The car and the money never arrive. Genuine private sales don't use gift cards, and legitimate escrow isn't something a stranger sets up for you by email. Only pay once you've seen the car and verified the seller.

Odometer wind-back

The displayed kilometres are lowered to make the car look barely used and worth more. Cross-check the odometer against the service logbook and receipts, the wear on the pedals, seat and steering wheel, and the general condition. A "90,000 km" car with a worn-out interior and no service history to back up the reading is telling you the truth.

Curbstoning (unlicensed dealers posing as private sellers)

Someone selling cars for profit while pretending to be a private seller, to dodge dealer obligations and consumer guarantees. Signs include the same phone number appearing on several listings, a seller who's vague about the car's history, meeting somewhere other than their home, and a name that doesn't match the registration papers. Buy from the registered owner, at their address where possible.

Cloned and copied listings

Scammers copy the photos and description of a real car and re-list it cheaply to harvest deposits. If a listing's price is well below everything comparable, be suspicious. Reverse-image-search the photos, and insist on seeing the actual car with the actual VIN before any money changes hands.

Money owing on the car

If the car has finance owing and it isn't paid out before you buy, the financier can repossess it even though you paid the seller in good faith. A PPSR check at ppsr.gov.au (using the VIN, for a couple of dollars) shows any security interest, plus whether the car has been written off or reported stolen. Do this before you pay, every time.

Paying safely

Pay in a traceable way — a bank transfer done in person or at a branch — rather than large amounts of cash, and never gift cards or crypto. Don't pay a deposit to hold a car sight-unseen. Get a signed receipt showing both parties' details, the price, date, VIN and odometer reading.

Meeting safely

Meet at the seller's home in daylight, and bring someone with you. Verify the seller's name matches the registration papers before you hand over anything. For the test drive, make sure the car is insured and don't leave a deposit or your own keys as "security".

If something feels off

Trust it and walk away — there's always another car. If you've lost money or spotted a scam, report it to Scamwatch (scamwatch.gov.au) and your state's consumer-protection or fair-trading office.

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About this guide

The MotorLoop teamThese guides are researched and maintained by the MotorLoop team, and every claim names the source that publishes it so you can check it yourself.

General information only — not advice, and not confirmed fact. Everything on this page was gathered from public sources (each platform’s own pages, reviews and press coverage) at the date shown, and pricing, features and policies change often and can vary by vehicle and location. Always check each platform’s own website for its current, correct information before making decisions.

All platform names, trademarks, logos and content referenced here belong to their respective owners; MotorLoop is not affiliated with, endorsed by, or responsible for any of the third-party sites mentioned. MotorLoop operates its own marketplace, which appears in this comparison clearly marked as ours.

Last updated 16 July 2026.

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