Nationwide Automobile Scam Involving Used Cars
MSNBC's Today Show reported today a nationwide automobile scam involving used cars. The scam has been going on for several years and has bilked consumers out of billions of dollars. In the latest police action authorities broke up a major ring involving more than 1,000 stolen cars and more than $25 million.
The way the scam works is that thieves will steal an automobile and then find an automobile of the same year, make, model, and color in a public parking lot just such as a shopping mall. The thieves then copy the vehicle identification number (VIN) which is located in the corner of the windshield and create a new, fake VIN plate which they use to cover or replace the real one on the stolen car.
The thieves then advertise the stolen car either in classified ads or in some cases simply trade the car in to a dealer who is likewise taken in by the scheme. Unfortunately, the unwitting consumer who buys the car is subject to having it recovered by police authorities which in some cases may take as long as four years. But when it happens, however, the victim is out the money and the car and likely would not be able to recover from his or her own insurance carrier because it is a stolen vehicle. As a result, there are two victims, the first being the original owner of the stolen car, and the second being the subsequent buyer who fell victim to the scam.
In order to protect yourself when buying a used car always check the VIN number which is typically located in three different places including the doorjamb. Look for sloppy errors on such as misspellings. As is typically the case if it is too good to be true it usually is. So when offered a car that is being sold at a 50% or greater discount, beware. Likewise, if the seller asks for all cash that is usually a sign of a illegal transaction. Finally try to run a CarFax report or one from a similar reporting agency. Finally do not be complacent and take for granted that the used car you purchased is not part of the scam because it usually takes several years to track down the stolen cars because the DMV's of different states do not communicate with each other, thereby prolonging the discovery of the stolen car. Nevertheless once the stolen car is located it will be confiscated by the local police authorities.
SEE our Tips for Car Buyers for more helpful information.
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