Exposing Deceptive Practices and fraud by unscrupulous vehicle sellers

Exposing Deceptive Practices and fraud by unscrupulous vehicle sellers

What you should know before you make your next purchase. 

Vehicle seller fraud is an unfortunate part of the automotive industry. Vehicle seller fraud can take various forms and it's crucial for buyers to be aware of potential scams. Therefore, we've opted to compile a list of scams and deceptive practices based on direct experiences and firsthand accounts shared with us over the years.

 

Odometer Rollback:

 

Odometer Rollback is an old deception where the seller misrepresents the number of miles the vehicle was driven by illegally manipulating the odometer to show a lower mileage. By changing the vehicle mileage, the vehicle may appear less used than it actually is and fetch a higher premium.

 

The buyers may end up paying more for a vehicle than its true value and they may face unexpected repairs sooner than expected. The good news is that with the widening adoptions of state and federal mandated reporting the likeliness of the seller fooling the potential buyer is getting lower and lower. The reason for this is decrease in this type of unscrupulous and deceptive practice is that regular people now have access to that government mandated reporting allowing the user to see the vehicle history and any possible mileage discrepancies during its lifetime.

 

The positive development is that as state and federal mandated and technological advancements vehicle data reporting is becoming more widespread. With repair shops, dealers, smog check facilities, insurance claims/inspection agents, CHP inspection offices and body shops now directly submitting vehicle information, including mileage to the DMV, the likelihood of a seller misleading a potential buyer is on the decline. As car buyers adapt the practice of running a full vehicle history report before committing to buy a vehicle, they gain access to some of that reported information and can review the vehicle history and identify any potential mileage discrepancies throughout its lifetime.

 

Title Washing:

 

Title washing is the process that some unscrupulous sellers use to alter a vehicle's title brand. This is usually done to remove information that may negatively affect the vehicles value such as salvage history, flood damage, TMU (Total Mileage Unknown), Lemon Buy Back and more…

Marketing a vehicle with a clear and unbranded title enhances its desirability, potentially leading to a quicker sale and a higher selling price. Buyers may unknowingly purchase a vehicle with a compromised structural integrity or water damage or other hidden issues that arise from earlier damage.

 

There are a couple of ways you can protect yourself. Before committing to a vehicle purchase, it is advisable to always conduct a Pre-Purchase Inspection (PPI) carried out by a qualified and independent automotive technician. They can identify previous signs of catastrophic damage that might not be easily visible to the naked eye, potentially saving you from a costly mistake. Another valuable resource at your disposal is a vehicle history report which can reveal past accident events and even title brands. In certain instances, it may expose title brands, even if the title provided by the seller has been altered to conceal any brands.

 

 

Misrepresentation of vehicle damage in an AS IS SALE:  

 

If you are setting out to get the best deal possible you may be lured in by some lightly damaged or dirty vehicles advertised on popular online websites for a fraction of their retail price. Despite a vehicle having an accident listed on its Vehicle History Report or even a salvage title, the damage may appear minor giving the buyer false impression. The vehicle will be placed back on the road with just some minor repairs. Even factoring in the repair expenses, the overall cost of the car can appear significantly lower than a comparable vehicle without any damage. 

 

This scam unfolds with the seller acquiring a severely damaged vehicle from an insurance auction, often facilitated by a third-party broker. The initial purchase cost is low due to the extensive damage. The seller subsequently undertakes basic or partial repairs, deliberately neglecting critical and expensive fixes such as frame straightening, airbag replacement and the repair of damaged internal components. This strategy aims to create the illusion that the vehicle experienced a less severe accident, deceiving potential buyers and inflating the vehicle's price.

 

This form of fraud poses a particular threat because buyers might falsely believe that, being aware of the extent of the vehicle damage, they can effortlessly restore the car to its original condition without unforeseen costs. Hidden issues or problems with the vehicle may go undetected leading to very costly repairs for the buyer. Identifying this form of fraud is particularly challenging to spot, since you're essentially tasked with evaluating the extent of damage deliberately concealed from view. Frequently, you may remain unaware that the vehicle was inadequately repaired or repaired improperly until you commence disassembling the affected area.

 

However, there is still a step you can take to help you identify this deception. First off, be wary of any seller that will refuse an independent vehicle inspection. If the seller discourages the buyers from having the vehicle inspected by an independent third party there is a reason to suspect that they may be misrepresenting vehicle condition. Through VinCheckUp.com users can access the original insurance auction listing pictures of the vehicle, making it one of the very few companies that provides vehicle auction details including images within the Vehicle History Report. In some instances, these images will vividly reveal the extent of the damage before the inadequate repair attempted by the unscrupulous seller.

 

Phantom Vehicle Scam:

 

Phantom Vehicle Scam is when a seller advertises a vehicle that they do not actually own usually for a very fair price. Scammers on online platforms may request payment for a vehicle they do not possess or intend to sell.

 

This can be a very dangerous type of scam because it has been known to be used to lure unsuspecting people to dangerous situation where they are presented fake paperwork to con them out of a deposit and even rob them.  In some cases, scammers will attempt to lure you in various bank fraud schemes.

 

The way to avoid becoming a victim is trust your gut, if the sale sounds too good to be true it most likely is. Never send money to a seller directly without inspecting the car in person. Never go alone to see a car. Tell multiple people where you are meeting the seller. Avoid carrying an excessive amount of cash on your person.

 

Stolen Vehicle Sale:

 

Some criminals may attempt to sell a stolen vehicle often providing false paperwork.

Needless to say, buying a stolen vehicle is never a good idea. The unsuspecting buyer may face legal consequences, lose the purchased vehicle and forfeit the money paid.

 

The way to steer clear of this deception is to request a VIN number and run a vehicle history report before seeing the car in person. However, even if the vehicle history report doesn't show a history of theft, it doesn't guarantee that the vehicle you're considering isn't stolen. The seller might provide a different VIN number not associated with the vehicle. It's crucial to verify the VIN number on the vehicle itself and compare it with the information on the vehicle documents before making a purchase.

 

The VIN can also be located on the following locations on the car itself: Driver side on the interior dash board, driver or passenger side front door sill and under the hood. Make sure the VIN number does not appear tampered with and are all displayed in the same font.

 

Should the VIN numbers on the car and the paperwork align and the Vehicle History Report reveals no concerning issues, the concluding step is to request the seller to furnish a copy of their driver’s license or state-issued ID. This ensures that the name matches the one displayed on the vehicle registration title or major document.

 

Bait and Switch:

 

Bait and switch is when a sellers advertises a specific vehicle at an attractive price but then they try to persuade buyers to purchase a different, usually more expensive vehicle. This technique is often used by dishonest vehicle dealers and may result in the buyer paying more than expected

and might not get the vehicle they initially wanted.

 

The easy way to avoid this deception is to walk away from any deal that deviates from what was originally advertised. Resist the allure of smooth-talking salespeople and their high-pressure tactics; don't hesitate to simply walk away.

 

False Advertising:

 

False advertising is the most common type of deception. Generally, it occurs when the vehicle sellers provide misleading information about a vehicle's condition, features or history in their advertisements.

 

As the buyer, avoid making a decision solely based on the inaccurate information as disclosed by the seller.  This can lead to regret and potential financial losses. Be sure to use all the tools at your disposal. Verify the validity of the claims made by the seller by ordering a vehicle inspection from a qualified independent vehicle technician and always run a full vehicle history check before committing to a purchase.

 

Forged Documents:

 

Some scammers may forge the vehicle documents in order to misrepresent a vehicle's history often inflating its value and hiding potential issues.

 

To protect themselves, buyers should always conduct thorough research, obtain vehicle history reports and insist on independent inspections. You may also contact your local DMV to verify the vehicle documentation prior to purchase. If in doubt, consulting with a trusted mechanic or seeking legal advice is advisable.