Despite an upswing in the number of methods a prospective car buyer has to protect him or herself from fraud, criminals continue to become more inventive in their pursuit of a fast buck, according to an article at consumer blog WalletPop.
Indeed, writer Tom Kraeutler reports that many creative crooks have taken to using informational tools like Carfax to make their fake offerings seem more realistic. While Carfax reports are an undoubtedly valuable tool for verifying a vehicle's history and ownership, Kraeutler says prospective buyers need to verify that the report they receive is the correct one. One possible trick a criminal can use to swindle an unsuspecting auto buyer would be to sell a damaged or heavily repaired vehicle for more than it is worth, using a Carfax report for a similar make and model vehicle to allay suspicion.
Kraeutler reports that there are a number of giveaways in a Carfax report which could indicate an online vehicle seller is not on the up-and-up. Any car that has seen many ownership changes within a short span of time should be viewed as suspect, he writes. In addition, any seller that asks for a down payment via wire transfer or acts if he or she is under a suspiciously strict deadline is probably not legitimate, he advises. Finally, an unusually low price or a registration in a different state than listed should both be considered red flags.
Even if a buyer is not ripped off completely, they could be stuck paying big maintenance charges and high auto insurance costs on a vehicle they thought would be in better condition – despite the presence of a seemingly legitimate report.