Vehicle leasing scammers targeting drivers on Instagram

Scammers are posing as leasing brokers in bid to pocket your cash. Here's how to spot a deal that really is too good to be true.

Having a car or some other form of vehicle is pretty much a necessity for most of us today. Indeed, figures from the Office for National Statistics last year found that around 79% of all households have at least one vehicle at their disposal.

But not everyone owns their vehicle: plenty of us instead opt to lease a car or van instead.

According to the British Vehicle Rental and Leasing Association, the trade body for leasing brokers, the total number of vehicles on contract in the first six months of 2018 came to 302,413. What’s more, that figure is up by 5% on the number of leased vehicles at the end of 2017.

Of course, any area of growing interest to the general public will also attract the attention of scammers. That’s why the BVRLA has warned of a “spate” of cases of a new scam specifically targeting those people who opt to lease their vehicles rather than purchase them outright.

So how does the scam work? And what can you do to protect yourself?

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How the vehicle leasing scam works

According to the BVRLA, the fraudsters are posing on social media - particularly Instagram - as lease brokers, posting ads to try to drum up 'business'.

The scam is particularly aimed at people who may have a few issues with their credit history, as the posts often promote lease offers with no deposits required and no credit checks.

The posts then invite interested people to get in touch to discuss a lease deal.

Of course, in reality this is far from above board, and the people posting these iffy ads are simply hoping to talk you into handing over your cash.

The trouble is that the scammers can appear pretty convincing, claiming membership of the BVRLA and even citing membership numbers of legitimate lease brokers.

Gerry Keaney, chief executive of the BVRLA, said: “These criminals are purposely targeting the vulnerable, scamming money from people who can least afford to lose it. It’s deplorable. Their adverts can appear very convincing with some even posing as BVRLA members and citing membership numbers of legitimate members.”

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Guarding yourself against the scam

The first thing to bear in mind is that all legitimate leasing brokers follow rules from the Financial Conduct Authority and will carry out both credit and affordability checks. It’s like any form of borrowing - the lender wants to make sure that you can afford to repay the loan. It’s not in their interest to be overly lax with their lending.

As a result, you should be incredibly sceptical of any supposed leasing broker who is openly claiming that they don’t need to carry out those checks. Chances are they are dodgy and are out to scam you.

If you ever have any doubts about a broker, then check their credentials. Just because they publish a BVRLA membership number, don’t just take their word for it. You can double check they really are legitimate by contacting the trade body.

It always pays to be a little wary of any offer that pops up, whether it’s through some form of social media, your email or even an old-fashioned cold call, particularly if it seems a little too good to be true.

Of course, scams like this one prey on people who are in a desperate position, and that causes them to overlook the warning signs that things aren’t right. But take a step back, and carefully consider how likely it is that the offer will actually be above board. If you’re unsure, you could always ask a trusted friend or relative for their take too.

And, once you've got a car, make sure you're getting genuine car insurance - 'ghost broker' scammers have, unfortunately, targeted this area too.

If you've been targeted by a car leasing scam, contact the police's Action Fraud organisation here.