Types of Dealer Fraud

dealer fraudOdometer Clocking – This is a type of dealer fraud that happens when a dealer replaces or changes the noticeable problems of the car. Floor mats, gas and brake pedals, and tires can be replaced. The finish is then waxed and washed. A clocker turns back the odometer with common tools such as picks, wires, screw drivers, electronic and digital tools. Car’s odometers can be rolled back in masses, because a good clocker can do this job in a matter of minutes. This vehicle is later sold over the internet, at the dealers lot or at the auction houses to get a higher value.

False or Altered Titles – Cars with clear titles are much more valuable than wrecked or damaged cars. This dealer fraud occurs when a dealer purchases a high mileage vehicle and subsequently resells it with already reduced odometer reading. This is accomplished merely by tampering the high-mileage figure noted or by obtaining a new automobile title with a false mileage figure before reselling the vehicle. A professional calligrapher or an artist can perform excellent quality title alterations, which are often invisible to the naked eye.

Title Laundering – This dealer fraud when a title of wrecked cars is replaced by papers bought in another country. A dealer discards the previous title, registers his vehicle in another state with the altered odometer and then in a name of a company reassigns the title back to himself, now having his car registered with the new mileage.

Reassigned Titles – In most countries licensed automobile dealers are allowed by law to transfer vehicle titles without re-registering them. This is how it happens. An automobile dealer’s reassignment of the title may be attached to the original title. Numerous title reassignments may accompany an original title, as well as the washed title. A dealer may also discard, rather than alter, prior reassignments of title, making it difficult to trace ownership of the vehicle.


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