South Africa’s motoring industry is facing a fresh threat as fraudsters use artificial intelligence (AI) to run increasingly convincing online vehicle scams, the National Automobile Dealers’ Association (NADA) has warned.
The warning comes as rising living costs push more South Africans towards the pre-owned car market in search of affordable mobility.
According to the South African Police Service, 147,149 commercial crime cases were recorded between April 2025 and March 2026, a 2.5% annual increase.
Separately, the Global Anti-Scam Alliance found that 85% of South African respondents had encountered a scam in the past year.
AI is making vehicle scams harder to spot
NADA says generative AI has removed many of the warning signs that once helped consumers identify fake vehicle listings.
Poor grammar, blurry photos and mismatched branding are becoming less common as scammers use AI to create more professional-looking adverts and convincing online identities.
“What looks like an unbeatable deal online can now quickly turn into a devastating financial loss,” said Thembinkosi Pantsi, NADA vice-chairperson.
However, several traditional red flags remain.
These include claims that a buyer can secure a repossessed vehicle before a bank auction, demands for an immediate EFT deposit and reluctance to arrange an in-person vehicle viewing.
NADA urges buyers to verify vehicle sellers
Pantsi urged consumers to transact only through accredited dealerships, which offer statutory protection under the Consumer Protection Act.
He also pointed out that AI is not only a tool for scammers. Consumers can use AI to help check seller reviews, company histories and other information before handing over money.
The key is to verify the information independently rather than relying on an advert or seller’s claims.
South Africa’s vehicle market continues to recover
The warning comes as South Africa’s new vehicle market continues its post-pandemic recovery.
Sales fell 29.2% in 2020 to 360,050 units from 536,612 in 2019. However, the market has since rebounded sharply, rising from roughly 515,976 units in 2024 to nearly 596,818 in 2025.
That momentum has continued into 2026. Total vehicle sales reached 57,708 units in July, up from 54,410 in June.
The industry is now edging closer to the 600,000-unit annual sales mark, creating a larger pool of potential buyers for scammers to target.
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