When a used car deal seems too good to be true, it probably is. Too often, innocent people find themselves victims of automobile fraud.
Most sellers are honest. But every buyer should be aware of the most common frauds attempted by unscrupulous shops:
A dishonest mechanic could bypass the high cost of repairing deployed air bags to pocket insurance claim money. These crooks may install salvaged or stolen air bags or fill the airbag compartment with trash.
The challenge for you is determining whether a car has a dummy air bag system. This is nearly impossible—and unsafe!—to do on your own. Only a certified mechanic using computer diagnostics can ensure that your air bag system is installed and in working order.
The FBI reports that 1.2 million vehicles were stolen in 2006, most sold for profit. A thief can mask a car's identity simply by replacing its vehicle identification number (VIN) with that of a similar vehicle. It's not that expensive to verify a VIN, but the crooks gamble that you won't take that extra step.
Buyers become victims when they purchase a stolen vehicle. When the police show up later to impound the car, you lose your transportation but get to keep paying the car loan.
The lower the mileage of a vehicle, the more it's worth. That's why unscrupulous sellers risk breaking the law by tampering with the odometer to increase the sales price. The unsuspecting victim buys the vehicle for more than its worth, and eventually spends more to repair a vehicle that's wearing out faster than expected.
To protect yourself when shopping for a used vehicle, consider these three tips:
Take the vehicle before you buy it to a reputable mechanic for a thorough inspection, including a check of the air bag system.
Get a complete vehicle history report before buying the car from such companies as Carfax or AutoCheck. If a different car pops up under the same VIN number, you'll know there's a problem.
Taking the time to conduct a thorough investigation of a used vehicle could mean the difference between a smart purchase and one that could cost you unnecessary frustration, money, or even your life.
For information about how to buy a car or truck, contact an STCU Member Service Representative at (509) 326-1954 in Washington or (208) 619-4000 in Idaho. Loan officers are available by telephone from 7:30 a.m. to 7 p.m., Monday through Friday, or visit any STCU branch location during regular business hours.
