Beware of Car Fraud: Tips for Staying Safe and Avoiding Scams When Buying a Car

2023-11-11 03:00:00

When selling cars, fraudsters register them in the name of third parties. This was reported by car sales specialist Ruslan Krivonos. He recommended checking the customs declaration when purchasing a car.

“To be sure that the car is clean, you need to request from the seller, including a cargo customs declaration. <…> As for the dummies on whom such cars are registered, the schemes can be different,” Krivonos said in an interview with Autonews.ru.

He warned that scammers might register cars for homeless or low-income people and then resell them. The expert noted that customs services do not have the right to collect any fees from this category of citizens. According to Krivonos, those who unknowingly bought a car that has not been cleared through customs will also have to pay tax duty and VAT in addition to the recycling fee. Vladivostok customs reported that scammers are selling unreleased cars that came to legal entities from temporary storage warehouses.

The press service of the Ministry of Industry and Trade emphasized that import schemes into the Russian Federation involving third parties and intermediary organizations most often do not apply to import requirements using a preferential recycling fee rate. It is noted that we are talking regarding those intermediaries who are able to provide services for customs clearance of cars in the territory of the EAEU countries. They offer to save money by manipulating tax, customs and other obligations. “For vehicles imported in this way, the recycling fee is paid at the full rate,” the department said in a statement.

From August 1, 2023, the recycling fee rate for imported cars has increased significantly, reports TV channel 360. For each car with an engine capacity of two to three liters, the designer must pay 844 thousand rubles, with an engine capacity of three to 3.5 liters – 970 thousand, more than 3.5 liters – 1.25 million. Auto expert Egor Vasiliev said that due to the increase in recycling collection for cars, it is intended to shift gray parallel import schemes from the market and help stimulate him.

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