All You Need to Know About Car Scams and How to Avoid Them

Dec 12, 2023 By Susan Kelly

Are you one of those who are looking for used cars in the automobile market? Then, you should be aware of scammers and suspicious dealers in the market. They try every way possible to distract you and scam you. If you want a good purchase, you should be well aware of their tactics and how they use manipulative techniques to dodge you.

In this article, we will elaborate on the techniques mentioned above in the simplest way so you can understand them and make your purchase worthwhile! Let's dive into it.

5 Used Car Scams You Should Be Aware Of

As we all know, the prices of properties and cars become high on an everyday basis, and it is an excellent option to look for used cars. Purchasing used cars helps you save a lot of money and gives you a chance to spend it on many other suitable opportunities. But you should be aware of some of the common frauds and car scams. Let's discuss them in detail.

Curb stoning

For most of us, curb stoning is something new, but those who have been in the market for many years know this manipulative technique very well. Suppose you're looking for a used car. In that case, you have been asked to obtain a dealer's license after following specific rules and regulations, including the "lemon laws," which have been fruitful in saving many of us from buying defective cars.

Curb stoning is a type of scam that many car sellers use to sell you a defective piece. They actually meet you at a private place, a private party, or at the curb to make the deal and earn a considerable amount of profit. Hence, giving this scam the name "Curb stoning".

Odometer Rollbacks

According to a survey by the National Highway Traffic Safety Administration, every year, more than 500,000 vehicles have false odometer readings and are sold with huge profits. The scammers usually roll back the odometer to make it obvious the car has covered fewer miles than the actual limit.

In this way, they manipulate the buyer and sell them the used car at a reasonably high price. If you encounter such a situation, all you have to do is hire a mechanic, have a thorough analysis of the odometer, and manually check to see if it has been rolled back or not. This gives you a fair chance to make the best purchase.

VIN Cloning

As we all know, every car has a different VIN that gives you a chance to have a look at the history of the car, car registration details, owner details, and much more.

Scammers take off the ID of the car to make it look unique and new if it has been damaged before, then they grab a tag from a similar but legit car and put it on the stolen one. They give the stolen car a fake ID or VIN, clone it, and then sell it to the buyers. In simple words, it means selling stolen cars with new VIN plates.

Title Washing

If the car has been destroyed before, it is given a "salvage title." This gives the buyer a quick view that the car has been damaged before. However, the scammers removed this salvage title and sold the damaged cars at high prices. This scam is known as Title washing. Once the scammers make such a scam, they immediately wipe off all the details and become anonymous. In such situations, you should be well-prepared mentally for such car scams.

Lowballing

If the seller is trying to sell the car at a cost far below its actual value and seems like getting rid of it, then it is a sign of a scam. This scam is known as lowballing. Sellers will say that they are ready to sell the car at a low cost, but the thing is, they are trying to hide the car's history and any prior damage caused to the vehicle. Beware of such scams because it is one of the manipulative tricks that can cause you heavy financial loss.

How to Safely Buy a Used Car?

As we have discussed, there are a lot of car scams that you should be well aware of, and you should protect yourself from any future fraudulent activity. Here, we are going to share some valuable tips for buying a used car safely at a reasonable price. Let's have a look at some.

Always Ask for Car History

Asking for the car history from the seller is your legal right. You should be aware of the history of the car, the original VIN plate, and other legal documents. However, if the seller refuses to give you the details, get help from auto-checking websites and make sure you have all the necessary details about the car you're about to purchase.

Hire a Skilled Mechanic

An inspection before the purchase typically costs you around $150 to $200, but it gives you a chance to save thousands of dollars. If the mechanic finds a genuine problem or fault in the car, then you can decide whether you want to purchase the car or not.

Have a Check on the Seller's Story

You should have a firm check and balance on the seller's history as well, whether the seller is a genuine person or not. Always research about the person who is selling you the car. Take out his national identification, work history, and selling history to make the right decision about buying a genuine vehicle.

Pay with a Cashier's Check

Now, you might wonder what a cashier's check is. Let's make it simple to understand. A cashier's check is a type of legal document with all the necessary information about the recipient and gives guaranteed funds to him. In any case, if the recipient falls victim to the scam or fraud, this document provides the necessary information and helps him get his funds back or make any legal claim. However, it is always advisable not to make such payments through personal cash or banks.

The Bottom Line!

With modern advances, criminals are also becoming very creative in manipulating and creating strategies to scam buyers. In this article, we have explained the scams you should be aware of while purchasing a new car and how you can avoid them.

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