What is Motor Vehicle Fraud?
Motor Vehicle Fraud occurs when an individual purchases a used vehicle and has been misled about vehicle. The seller may not be forthright about the vehicle's condition at the time of sale, or the VIN number has been altered to hide its past from the buyer. Consumers need to be aware of the hazards of potential misinformation about the actual condition of the vehicle and its title.
10 Tips to Avoid Car Buying Fraud
- See the Car in Person: Scammers often use fake photos and descriptions online. Never send money or make a purchase without seeing the car in person.
- Verify the VIN: Compare the VIN on the car, title, and vehicle history report. A mismatch could indicate a stolen vehicle or other fraud.
- Verify the vehicle is not stolen: For this process, use the Colorado Department of Public Safety's Motor Vehicle Verification System.
- Obtain a Vehicle History Report: A vehicle history report from a reputable source like Carfax or AutoCheck can reveal past accidents, damage, title issues, and other important information.
- Get a Professional Inspection: Have a trusted mechanic inspect the vehicle before you make a purchase.
- Get a Bill of Sale: A bill of sale establishes the sale and protects you if the vehicle is later found to be stolen or has issues.
- Beware of Low-Ball Pricing: Be cautious of prices that seem too good to be true. A very low price could be a sign of a scam or hidden issues.
- Avoid Unusual Payment Methods: Scammers often use wire transfers, prepaid cards, or other unconventional payment methods. Bank transfers and cashier's checks are more secure payment options.
- Be Suspicious of Pressure Tactics: If a seller is pressuring you to buy quickly or avoid inspections, be wary.
- Ask Questions and Get Everything in Writing
Types of motor vehicle fraud
Poorly rebuilt vehicles involve wrecked or salvaged vehicles. These vehicles may be unfit or hazardous to drive, or priced too high for their actual condition, despite their outside appearance. Most of these vehicles were in accidents or floods. They may have steering or engine problems, defective brakes, or poorly welded parts.
If your license plates are stolen, you will want to report it to your local law enforcement agency and contact your county motor vehicle office to report the theft and reissue your plates.
Important: If you choose to have the same plate configuration issued as what was stolen, please be aware that you are at risk of being pulled over, stopped, questioned, or detained by law enforcement, as the plate will still have a stolen indicator on it.
Each year, the NHTSA estimates that over 450,000 vehicles are sold with inaccurate odometer readings. This type of fraud involves intentionally changing the recorded mileage of a vehicle by disconnecting, resetting, or altering the odometer. Learn more: