Scams Alert! Tips for Buying a Used Car Safely

Buying a used car comes with its own challenges, which can be time consuming. Finding a good used car, one that fits your requirements and budget, is often a tedious task, involving a lot of research, negotiations, and test drives. But that is not the only challenge when you’re out to procure a used car. There are plenty of scams in the used car market, aimed at deriving more value from a car than it is actually worth, trying to deceive buyers into buying a not so great car at higher prices.

Types of Fraudulent Activities and Practices 

The used car market is flooded with various tactics to scam innocent buyers seeking quality used cars. Some of the common used car scams are listed below:

Odometer Rollback

One of the biggest known scams in the used car market is odometer tampering.  In this scam, dealers or sellers reduce the number of kilometers that a car has clocked in its lifetime in order to grab a higher price for the car. Used cars that have driven fewer kilometres tend to fetch more money, and hence, this is a common scam in the used car market.

These scams were fairly easy to conduct with older cars that came with mechanical odometers, and were thought to be quite difficult with the newer digital meters. However, new methods have arisen with which fraudsters are now able to easily alter odometer readings even on modern day cars.

Counterfeit Parts

Another known scam is the replacing of OEM parts with sub-par counterfeits. This practice enables fraudulent dealers to make a profit on the sale of old parts, as OEM parts tend to cost more than their low-quality counterfeit parts. Furthermore, scammers also eliminate non-essential components completely, rendering certain features of the car unusable. 

Counterfeit parts have a limited lifespan, and are only used to ensure that the car is in working condition when it is sold. However, these parts tend to break down soon after the sale, and the cost of replacement is borne by the new owners, increasing the overall cost of ownership.

Fake Inspection and History Reports

Used car dealers may produce forged history reports to persuade buyers into acquiring sub-par vehicles at high prices. These reports are meant to instill confidence in the buyer through manipulation on the fact that the vehicle has been thoroughly tested by a professional. However, the fake reports are essentially used to hide away problems with the car, problems that may turn into costly repairs for the new owners in the future.

Vehicle Cloning Tactics

Another common practice among used car scammers is vehicle cloning. Cloning involves copying a vehicle’s identity onto another vehicle. The vehicle that receives the new identity is usually stolen, and hence procuring this vehicle can become problematic for the buyer. Fraudsters often browse through online marketplaces to find cars of the same make and model, and copy their number plates onto the stolen cars they’re selling.

The Old Bait-and-Switch

Used car dealers use listings to market their inventory to potential buyers. When searching for a good car, buyers stumble upon these listings, and proceed to inquire about the car they’ve chosen. However, when they arrive at the dealership to check out the car, the dealer informs them that the car has already been sold. Instead of the car the buyer chose, the dealer then attempts to pitch alternate models or higher trims in order to make a sale of higher value.

Accidental or Flood Damaged Cars

Cars involved in major crashes, or have been submerged in water, lose a lot of their value as they are deemed unsafe and unreliable. However, fraudsters often repair these cars to the point where they become operational enough to sell them, and hand them over to unsuspecting buyers. These cars, even though having been repaired, are not reliable. 

An accidental car that is repaired has already lost its structural integrity, and in case of another crash, the consequences for the occupants may be dire.  Similarly, cars that have been affected by flood or water damage tend to accumulate a lot of rust and corrosion. Parts of a car that are rusted have also lost their structural integrity, and are unreliable. 

Steps to Safeguard Yourself from Used Car Scams

While scammers have become resourceful in hiding their fraudulent activities, it is still possible to unearth these scams. Being vigilant and not blindly believing the dealer or seller will go a long way in ensuring that the used car you’re buying is actually worth the money.

Conduct Thorough Market Research

When buying a good used car, first conduct a thorough market research. This involves exploring the current market prices of models you have shortlisted by exploring online marketplaces and classifieds. When you know the general price of a car, a scammer will be unable to take advantage of you by asking for more than the car is worth.

Additionally, when you have conducted thorough research, you will be in the know about the trims and features of the car you are out to buy. This will also enable you to safeguard yourself from false information presented to you by a fraudulent dealer or seller.

Get a Professional Opinion

Another great way to ensure that the condition of the car is true to what the dealer claims,  is by having it inspected by a professional. Even if the dealer or seller presents you with an inspection report, insist on having the vehicle inspected by a professional of your choice. CARS24 offers a pre-delivery inspection service where a professional will inspect the vehicle and provide you with a detailed report of the findings. 

This will help bring to light any covers-ups, such as exterior or interior damage, replaced or missing parts, and accidental damage. Additionally,, the report will cover 200+ checks, including things like odometer tampering, so that you can cross verify the information with what the seller portrays.

Ask for the Vehicle’s Complete History

When considering a used car, always ask the dealer or seller for the vehicle's full history. A reputable dealer should be able to provide you with records of past owners, accident history, service records, and whether the car has ever been involved in any major incidents such as floods or accidents. If the seller hesitates or provides limited documentation, it may be a red flag.

Trust Your Instincts and Avoid Rushing

When buying a used car, it’s essential to take your time. If a deal seems too good to be true or you feel pressure to close the sale quickly, take a step back and reassess. Fraudulent dealers often rush buyers into making quick decisions, hoping to avoid scrutiny. Take your time, and don't let emotions cloud your judgment.

Avoid Paying in Cash or Using Untraceable Payment Methods

To protect yourself from potential scams, avoid paying for the car in cash or through untraceable payment methods. Instead, use secure payment options such as a bank transfer, credit card, or a financing option that offers consumer protection. Always ask for a receipt or proof of payment, and ensure the transaction is documented properly to safeguard your interests in case of disputes. This provides an extra layer of security if you need to pursue a refund or take legal action.