Top 10 Used Car Scams

There are numerous scams out there that can leave you out of pocket and without a car. In this blog post, we'll explore the top 10 used car scams and how to avoid them.

1. Odometer Fraud

One of the oldest tricks in the book, odometer fraud involves rolling back the miles on a car to make it appear less used. To avoid this, check the car's service history and look for inconsistencies.

2. Title Washing

This scam involves changing the car's documentation to hide its history, such as if it was salvaged or written off by an insurance company. Always get a vehicle history report before buying.

3. VIN Cloning

Fraudsters use a stolen Vehicle Identification Number (VIN) from a legally registered car to hide the identity of a stolen or salvaged one. Make sure to compare the VIN on the car with the one on the title and inspection records.

4. Fake Escrow Services

Scammers sometimes suggest using an escrow service and set up a fake website to trick you into releasing funds for a car that doesn’t exist. Always use a reputable, well-known escrow service.

5. Curbstoning

Some sellers pose as private owners to avoid dealer regulations and sell faulty cars. Be cautious if the seller has multiple cars for sale or is unwilling to meet at their home.

6. Flood-Damaged Cars

Cars that have been damaged in floods are often cleaned up and sold without disclosure. Look for signs of water damage such as musty smells, water stains, or excessive rust in unusual places.

7. Fake Certifications

Some sellers advertise cars as 'certified' when they're not. Always verify certificates and get a pre-purchase inspection from a trusted mechanic.

8. Online Deposit Fraud

Scammers ask for a deposit to hold a car for you and then disappear. Never send money without seeing the vehicle in person and confirming its legitimacy.

9. Warranty Scams

Sellers may offer fake warranties or upsell extended warranties that provide minimal coverage. Always read the fine print and verify the warranty with the provider.

10. The "Yo-Yo" Financing Scam

This involves dealers letting buyers take the car home, then calling later saying the financing fell through and demanding more money or a higher interest rate. Always ensure financing is finalized before taking possession of the car.

Buying a used car doesn’t have to be stressful if you know what to look out for. By being aware of these common scams, you can protect yourself and make a confident purchase.