South Africans scammed with fake repossessed car deals

South Africans hunting for cheap used cars are being warned about a fast-growing repossessed car scam involving fake ‘bank repossessed’ vehicles advertised at unrealistically low prices.

The repossessed car scam is spreading rapidly on social media.

Consumer journalist Wendy Knowler has warned that the scheme has been around for years, but is now escalating across platforms like Facebook Marketplace, WhatsApp and TikTok.

Victims are losing tens of thousands of rand in deposits for cars that never existed. In many cases, there is no way to recover the money.

Short of cash and under pressure, many buyers are falling for it. The fake repossessed car deals often appear on social media and messaging apps.

“Learning to tell the difference between a fantastic bargain and a piece of bait… is a really important life skill,” she said.

How the repossessed car scam works

Scammers typically advertise late-model vehicles — popular brands like Toyota or Hyundai — at prices far below market value.

They claim the car has been repossessed by a bank and is headed for auction.

But there’s a catch.

They offer to ‘pull’ the vehicle from the auction and sell it privately if the buyer acts fast and pays a deposit.

That deposit, often 30% to 50% of the supposed price, is the trap.

Once paid, the car never materialises.

“They stall, give excuses, then block you,” Knowler said.

Fake proof, real losses

Victims are often convinced by what appears to be legitimate paperwork.

Scammers send:

• Fake invoices
• Screenshots of auction listings
• Company registration documents
• Photos of real vehicles

But all of it is stolen or fabricated.

Losses can run into tens — even hundreds — of thousands of rand.

‘It’s not legally possible’

A key warning sign is often ignored: the deal itself.

According to industry experts, repossessed vehicles cannot legally be sold privately before auction.

“They cannot sell those cars in any other way than via an auction,” Knowler said.

“There is no legitimate way… for a car to be pulled from an auction and sold privately.”

If someone claims otherwise, it is a scam.

Scammers posing as insiders

Fraudsters often pretend to be:

• Auctioneers
• Bank insiders
• Agents working for dealerships

They may even use the names of legitimate companies to build trust.

Lebogang Gaoketse, head of marketing at WesBank, confirmed the scam is widespread across South Africa.

“If it’s too good to be true… it definitely is,” he said.

“We will never sell an auction car outside the auction space.”

Pressure tactics and fake urgency

A major red flag is urgency.

Scammers push buyers to act immediately or risk losing the deal.

“They will say… you’re going to lose it if you don’t pay the deposit,” Gaoketse said.

Knowler added, “Why would a legitimate company do that? It’s completely unprofessional.”

Even photos can be stolen

Scammers go as far as visiting real auction viewings to take photos of vehicles, then reuse them in fake listings.

Others steal images from legitimate car sales platforms.

That’s why even realistic-looking ads can’t be trusted.

Repossessed car scam cases piling up

The scam is hitting victims across South Africa.

In one case, a buyer travelled to a listed address, only to find nothing there.

In another case, scammers used a real dealership’s address, causing confused victims to arrive daily asking about cars that didn’t exist.

Dealers say the problem is happening ‘every day’.

Warning signs of a fake car deal

Experts say buyers should walk away immediately if they see:

• Repossessed cars sold outside auctions

• Requests for upfront deposits
• Pressure to act quickly
• Communication pushed onto WhatsApp
• Refusal to allow in-person viewing

“Never pay for something you haven’t seen,” one expert warned.

How to protect yourself

Before engaging with any deal:

• Contact the bank or auction house directly using official details
• Verify auction listings independently
• Use tools like Google Maps to check addresses
• Reverse-search images to see if they’ve been reused

“There are great deals at auctions,” Knowler said.

“But you have to do it the proper way.”

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• Online shopping scams on the rise in South Africa. Fraudsters are increasingly targeting bargain hunters through social media and fake listings.
• Consumers warned about fake deals on social media marketplaces. Authorities flag growing scams involving fake sellers and pressure tactics.
• How to protect yourself from common consumer scams. Key red flags and practical steps to avoid losing money to fraudsters.

For more information, listen to Knowler and Gaoketse on 702’s Afternoons with Relebogile Mabotja using the audio player below: