Selling a car online can already feel like a trust fall with the internet and for one Newcastle resident, that trust almost backfired.
Deputies in Placer County, California, say two Fremont men were arrested after allegedly pulling off a classic “engine oil” scam targeting private sellers.
The suspects — 19-year-old Lulian Mihai and 36-year-old Decebal Mihai — reportedly posed as interested buyers, then poured oil into the seller’s engine during a test drive to make it look like the car had serious mechanical issues. Once the car started smoking or making noise, they’d act concerned and offer to take it off the seller’s hands for a fraction of the original price. (1)
“This well-known scam tricks victims into believing their vehicle has a catastrophic problem, which the all-too-willing suspects are able to take off the victim’s hands for a steeply reduced price,” the PCSO said.
Here’s how the scam works and what to watch for if you’re selling your car online.
When the Newcastle resident noticed smoke coming from her car during the test drive — something that had never happened before, she immediately grew suspicious. She believed the potential buyers put oil into the engine to make it seem like there was a mechanical issue. Trusting her gut, she told the men to come back another day and then contacted the PCSO.
It’s not an isolated incident. Americans reported losing a record $12.5 billion to fraud in 2024, according to the Federal Trade Commission, with car scams now shifting into high gear. (2) Point Predictive’s latest Auto Lending Fraud Trends Report estimates lenders could face $9.2 billion in auto-related fraud losses this year, the highest ever recorded. (3)
But the “oil-in-the-engine” trick isn’t the only scheme revving up online. Scammers are getting more sophisticated, swapping dirty motor oil for digital deception.
Virginia resident Jeffrey Carr thought he’d found the deal of a lifetime: a 1970 Chevrolet Chevelle — the same model as his father’s first car — listed online for just $22,000. The “broker,” supposedly based in Cleveland, provided contracts through DocuSign, a bill of sale and dozens of glossy photos that made everything look legitimate. But after Carr wired the money, the seller vanished.
The website, investigators later found, was a fake designed to disappear once victims sent their payments, leaving no digital trail. By the time Carr realized what had happened, both the car and his cash were long gone. He ultimately had to cash out his 401(k) to cover the loan, according to News 5 Cleveland. (4)
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In the Newcastle woman’s case, she wasn’t about to let the suspects get away with it. She arranged a second meeting this time with deputies and detectives waiting nearby. The men were arrested on the spot.
A search of their vehicle turned up counterfeit documents, evidence of identity theft and even revealed that the Toyota 4Runner they were driving had been stolen through a similar scam in the Bay Area.
Both suspects are now being held in Placer County Jail on charges of theft, conspiracy and fraud. But their story serves as a warning: with the average used car selling for just over $25,000 as of May 2025, according to CarEdge, protecting yourself when selling a vehicle is essential. (5)
One of the easiest ways to protect yourself is to control the setting. Many police departments now offer designated “safe exchange zones” well-lit parking areas under video surveillance or regular patrol. Meeting a potential buyer there can instantly deter scammers who rely on privacy to pull their tricks.
When you do meet, never go alone. Bring a friend or family member who can keep an eye on the buyer (and anyone they brought along) while you focus on the sale. If multiple people show up or something feels off, end the meeting immediately and walk away.
To reduce risk even further, consider selling through a trusted online marketplace that helps vet buyers. And before anyone even sits behind the wheel, ask to see a valid ID — a legitimate buyer won’t have a problem with that.
While car scams all look different, some using oil and others using polished websites, both prey on trust. Before you list or buy a vehicle online, take your time because when it comes to your hard-earned money, slow and steady isn’t just a driving tip.
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ABC10 (1); Federal Trade Commission (2); Point Predictive (3); News 5 Cleveland (4); CarEdge (5)
This article originally appeared on Moneywise.com under the title: California sheriff issues warning about ‘oil-in-the-engine’ car-buying scam — how it works and what to watch out for
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
