The ACCC (Australian Competition and Consumer Commission) has recently issued alerts for a number of scams and frauds which have been identified in the used car and used caravan sectors. Alerts that buyers need to be aware of and take steps to avoid losing their money. Buying a brand new caravan is the aspiration of most buyers, pricing may have you looking at the used caravan market as a more affordable option. Online platforms are the go-to channels for used caravan sales but unfortunately, also the go-to channel for scam artists and fraudsters.
In this article, we’re providing details of the ACCC alert, popular scams to watch for and ways that Jade Caravan Finance can assist buyers of both new and used caravans.
Fake Ads: ACCC Alert
The ACCC issued a media release on 27 April which notes that RV buyers are increasingly falling victim to fake ad scams due to the high demand and low supply in the caravan market. Fake ads are the key topic of the release but the ACCC has added an additional warning around fake emails attached to these ads. They warn potential buyers to watch out for seller email addresses that are impersonating defence force personnel.
They provide examples of these fake emails including @airforce-raaf.org @royal-australian-defence-gov.au and [email protected] But also warn that even a genuinely correct email is not a guarantee that the ad itself is genuine.
The ACCC warns buyers that a low price can often be a red flag alert to a scam caravan for sale ad. Often ads will post prices that are significantly below the market value. The scammers also seek payment from the buyer in order to secure the caravan, but the vehicle is never delivered and in many cases doesn’t exist.
To explain the low price, the seller may create urgency around the sale and give reasons as to why the buyer cannot view the vehicle for an inspection prior to purchase. The Commission warns the old but true adage that it appears too good to be true, it sure is a warning to buyers. If the seller refuses to meet prior to payment being made, it should raise buyer suspicion.
Buyers should watch out for the payment method requested as there is a growing tendency to requesting methods including eBay, international money transfers and direct bank. The ACCC advises buyers of used caravans to always make an attempt to inspect the caravan; avoid payment by suspect methods; and trust their own instincts.
Another risk of getting involved with fake ads and selling scams is losing personal information. The ACCC advises people not to provide personal information such as driver’s licence, address, contact details etc to persons they have met only online.
PPSR is the Personal Property Security Register and this is a national resource where lenders register their interest in a wide range of goods they have issued loans for. Caravans purchased with a Secured Caravan Loan involve the caravan being used as security against the loan. The lender will register their interest in your caravan on the PPSR. When the loan is completely paid out, the lender removes their interest in the property.
For buyers of used caravans, checking the PPSR reveals if the caravan is under finance and can also reveal the genuine owner. Rego checks through the relevant state authority may also be possible to check ownership.
These checks can be compared to the person selling the vehicle. Always ask for an ID from a seller and take what steps are available to you to validate the ID.
Broker Benefits Highlighted
If you’re paying cash for your caravan or arranging any loan yourself, it may fall to you to be responsible for many of the issues around these scams. If you are looking for a loan to purchase either a new or second-hand caravan, using Jade Caravan Finance as your broker offers many benefits.
When handling your caravan loan, your Jade consultant will as part of our service, check the ID of the seller, check the PPSR and handle the settlement. The settlement involves our lender making the payment to the seller. That process would typically include certain bank account verification stages.
These are just some of the assurances that we can provide to buyers to assist them in avoiding falling prey to scammers.
Buying New with Cheaper Finance
If you are suspicious about a used caravan advert or concerned about the integrity of the process, why not consider buying a new caravan with our cheap finance deals. At our cheaper interest rates than brand new caravan may be far more affordable than you think and be a realistic alternative to buying a used caravan. Compare our caravan loan interest rates here.
Use our mobile home loan calculator to work out repayment estimates to assist with your buying decisions or just give us a call for a quote.
Call 1300 000 003 to discuss lending with a consultant
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.