Pssst: Wanna (Not) Buy a Stolen Car?

May 23
00:35

2024

Michael Trusthold

Michael Trusthold

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Would you buy a used car from a well-dressed, friendly, middle-aged individual who placed a classified ad and meets you midday at a restaurant? Oops! You might be getting scammed. Here are tips to protect yourself.

The Deceptive Allure of a Friendly Seller

Imagine this scenario: You wouldn't buy a used car with cash from someone you just met in a bar who then leads you down a dark alley to show you the vehicle. But what if the seller is a well-dressed,Pssst: Wanna (Not) Buy a Stolen Car? Articles friendly, middle-aged person who placed a classified ad in your local newspaper and meets you at a restaurant of your choice? You might think it's safe, but you could be wrong.

The Story of Jennifer Warwa

Jennifer Warwa's experience is a cautionary tale. She bought a minivan and had her mechanic inspect it. The mechanic was shocked when he later discovered that Jennifer had been scammed. He told CBC's Marketplace, "Because I met the gentleman who was selling the vehicle. Very clean cut. In his fifties. Very soft spoken... And he went with her to get it inspected. There was just no sign that was the kind of person he was."

A few months later, Jennifer received a call from the police informing her that she had purchased a stolen minivan, and they were coming to seize it. Distraught, she tried to hide the van, but the police eventually caught up with her. She ended up paying for a year and a half on a $5,000 bank loan for a van she couldn't drive. Ouch!

Jennifer was just one victim in a chain that included the original owner, the insurance company, other consumers whose insurance rates keep rising, and the police, who spend thousands of hours tracking thefts. According to the FBI, a vehicle is stolen about every 36 seconds in the USA, amounting to an $8 billion yearly problem (FBI).

How These Scams Work

Thieves target specific cars for their value, ease of resale, or because they are easier to steal. Years ago, most stolen cars were stripped for parts, including unusual parts like airbags. Today, some thieves are so bold they sell cars through newspapers.

The Rise of VIN Cloning

A newer scam called "VIN cloning" involves stealing the Vehicle Identification Number (VIN) from another car. Criminals obtain VINs by copying them from the dash of cars in parking lots—even at dealerships. Some even physically remove the VIN plate from vehicles in auto salvage yards that allow customers to "pick your own parts." The number is used to falsely obtain new ownership documents, or documents are forged. Either way, a cloned VIN allows them to transform stolen cars into pseudo-legal vehicles that can be officially titled and sold. Many thieves work across state lines: cars may be stolen in the East, registered in the Midwest, then sold in California. Scary!

How to Avoid Buying a Stolen Car

Here are some tips to protect yourself from buying a stolen car:

  • Check the VIN: Compare the VIN on the dash with the VIN in the driver's door jamb, under the hood, and on the paperwork.
  • Get the Car's History: Use the VIN to get the car's history at Carfax for about $20.
  • Match Documents: Ensure title and registration documents match the name and address of the seller.
  • Out-of-State Cars: Be cautious if the car is from out of state.
  • Meeting Location: Be suspicious if you must meet a private seller in a parking lot. It's better to see that they live at the address where the car is registered.
  • Recent Transfers: Check if the vehicle has recently been transferred.
  • Contact Information: Does the seller use a home or work phone number, or just a cell?
  • Price Too Low: Be wary if the selling price is oddly low.
  • Dealer Scams: Be aware that some used car dealers are getting scammed too.
  • Payment Method: Pay by certified check or money order, not cash.

Conclusion

Most private sellers are honest, regular folks like you, and prices tend to be lower with private sales. By following these tips, you can greatly improve your chances of driving away with a genuine used car.

Interesting Stats

  • According to the National Insurance Crime Bureau (NICB), the Honda Civic was the most stolen car in the U.S. in 2020 (NICB).
  • The recovery rate for stolen vehicles in the U.S. is around 56%, meaning nearly half of stolen cars are never recovered (NICB).

By staying informed and vigilant, you can avoid becoming a victim of car theft and ensure that your next used car purchase is a legitimate one.