Buying a car can be an exciting experience. However, it can quickly turn into a nightmare if you become a victim of auto fraud.
Auto Fraud can cost you thousands of dollars, and it can be challenging to recover from the losses. In this blog, we will discuss what auto fraud is, how to spot it, and what you can do to avoid becoming a victim of auto fraud when buying a car.
What Is AutoFraud
Auto Fraud per se by Nathan DeLadurantey is a general term used to describe any type of fraud related to cars and there are several types of auto fraud scammers use to deceive unsuspecting buyers.
Types Of AutoFraud To Watch Out For
Odometer Fraud: This is when the seller manipulates the odometer reading to make it appear as if the vehicle has traveled fewer miles than it actually has plus this is hard to detect because most buyers rely on the mileage to make informed decisions.
Title Washing: This is when the seller changes the title of the vehicle to hide information like salvage or flood damage and title washing is often used to sell junk cars for a higher price.
Financing Fraud: This is when a dealer secures financing for the buyer with unfavorable terms without the buyer’s knowledge plus the dealer may inflate the interest rate, extend the loan term, or add hidden fees.
VIN Cloning: This is when a vehicle is stolen, and the thief replaces the VIN with a fake one from a similar make and model that hasn’t been reported stolen and the thief then sells the car to an unsuspecting buyer.
Yo-Yo Scams: This is when the dealer tells the buyer that they have been approved for financing, and the buyer drives the car home.
Nathan DeLadurantey A few days later, the dealer calls the buyer and tells them that their loan fell through, and they have to return the car or reapply for financing with unfavorable terms.