Latest vehicle insurance scam in BC found on Chinese sites

Exporting cars illegally is nothing new, but this is Richmond News recently uncovered another example of a scam luring richmondites in search of “quick bucks”.

A recent ad on some Chinese-language sites, including Vansky and Little Red Book (similar to Craigslist or Kijiji), asks people if they have good credit and “want to make a quick buck,” noting that the scheme is “completely legitimate.”

After you have responded to the advertisement, a Richmond News Reporters learned that the “quick buck” would be made through insurance fraud.

The man who responded to our inquiry, Fred (not his real name), told the reporter all he had to do was go to a dealership, put down a car deposit and secure short-term financing. Money for the down payment and the first three months of financing would be provided by Fred in cash.

At the dealership, the reporter was told to take out new car insurance as well.

Once the reporter took possession of the car, it was to be driven straight to a “garage” where all tracking devices would be removed. The vehicle would then be shipped to Asia, where it would sell for three times the price it was purchased for in Richmond.

A few months later, the reporter would file an ICBC claim and report his vehicle as stolen.

“Until then, they would never find it. It would be sold in China,” said Fred (in translation).

Without proof that the vehicle wasn’t stolen, ICBC would have to pay the remainder of the financing. And with “new car insurance” the payout would not be subject to depreciation.

When asked if the process was legal, the reporter was told “it’s a legal gray area.”

Meanwhile, the reporter was paid $5,000 to $10,000 depending on his credit score and the model of car he was able to buy. In addition to the well-known luxury brands, heavy vehicles such as the Dodge Ram series are also very popular in Asia, explained Fred.

The Richmond News I have contacted ICBC for comment on the scam but have been told it is a criminal matter and an investigation should be made with the police.

However, the Richmond RCMP said they could not provide any information at this time.

Macgyver Tse, account manager at King’s Auto Lease Richmond, said he hadn’t heard of this particular scam but knew of similar ones as people have been trying to circumvent car export regulations for years.

“Exporting cars can be a quick buck,” Tse said, “like one of the most popular Mercedes-Benz models, G63, if you get your hands on one, it’s a guaranteed profit of $50,000 or more if.” you export. And by legitimate means.”

Tse said most dealers have agreements with the manufacturer to prevent buyers from buying vehicles and exporting them immediately.

If a customer renting a vehicle refuses to sign an export ban contract, the dealership can even put a tracker on the car and keep one of the car keys (two are provided for the new car owner) for over a year to ensure that the car is not exported, he explained.

Merchants are responsible for keeping their stocks for the community to maintain trust between customers and manufacturers, Tse added.

Regardless, the illegal auto export business has grown rapidly in recent years while the local auto market has been at an all-time low.

Meanwhile, the “perfectly legitimate” “quick buck” ads continue to run on social media platforms.