Used Vehicle Fraud And How To Avoid It
Used Vehicle Fraud is a common thing for some auto dealers and private sellers. Dealers sell hundreds of vehicles in the market either flood damaged or salvaged. Unfortunately, people unknowingly purchase such vehicles either from private sellers or from automobile dealerships.
Actually, there are different types of used vehicle fraud; the most common ones are the following:
Odometer rollback is the process of tampering with an odometer so that it shows less mileage than it actually has. Even if the dealers replace the odometer with the newest digital one, it again can undergo odometer fraud. Fraudsters may use a special device meant for fixing faulty odometers, in order to roll it back. People do this to be able to sell their cars at a higher price than they actually worth.
Car Cloning as Used Vehicle Fraud
Car cloning is the process of stealing the identity of a car. By the word “identity” we mean the registration number that every vehicle possesses. When fraudsters steal a vehicle’s registration plate, it becomes easy for them to duplicate a vehicle using that plate. The number of cloned vehicles is increasing rapidly day by day.
Some fraudulent people either steal a vehicle’s registration plate, or duplicate it using the services of some third party individuals. The fraudsters usually use online car selling sites to gather information about the different vehicles and their registration numbers.
Undisclosed “lemon law buyback” vehicles
Misrepresenting previous “lemon vehicles” is a common type of used vehicle fraud. Lemon law buyback vehicles are those that the automakers have repurchased due to safety related problems and serious defects.
In some states, lemon law buyback vehicles get special titles like salvage vehicles do. The dealer must inform the potential buyer about the car’s previous life i.e. lemon history. However, a particular set of laws punish those dealers, who intentionally conceal such information from their customers.
Title washing is the process of hiding or concealing a vehicle’s salvage history. Dealers usually brand a vehicle as salvaged when the insurance company buys it back declaring it a “total loss”. A vehicle may be titled as salvage, as a result of a serious damage or a flood or if stolen. Such vehicles have too low prices because hardly anyone would like to buy a salvage car.
If you have become a victim of used car fraud, turn to a good auto dealer fraud attorney. The experiences attorneys of The Margarian Law Firm are ready to help you out of such stressful situations. At least they an give a piece of great legal advice.