Monday, December 12, 2011

An Introduction into Auto Fraud


In a perfect world, people would be unquestionably honest in every aspect of their lives.  There would be no need for things like safes and security, as there would be no threat to a person’s lifestyle or finances.  In a perfect world, there would be no such thing as automotive fraud.  Unfortunately for us all, this is far from a perfect world.  As a result, the safeguarding of one’s assets is an absolute necessity.  While it is a stretch to say the world is inherently dishonest, it is not bold to admit that fraud is a familiar mechanism in the business machine.   The sly but suited methodology involved with duping an uninformed consumer has been considered artistry for most con-men.  The ability to present something faulty as something fair has infected every industry in the world.  The automotive market is no different.

The perpetual public perception of automotive dealers as being silver tongued thieves out to cope a feel on customer’s pockets is but one example of how society views fraud in the automotive world.  While a larger portion of dealers and car salesmen are simply people trying to support a family, there are those who wind their watch to a crooked clock.  The reason behind most sorrow stories involving fraud has to do with basic lack of knowledge on the consumer end.  Not knowing what is standard and what is a scam can lead most buyers down a dangerous path of being misinformed and mistreated.  The first line of defense to avoid such a woeful fate is to know what to look for.

Fraud in terms of automotives generally exists in the pre-owned market.  Yes, buying new from a dealership can still set you up for a contractual robbery, but most automotive fraud happens with used cars sold through dealerships and private sellers.  The reason being is it is much easier to unload a shoddy, busted car that has miles on it than a brand new one.  People buy used and scam artists know this, so they can manipulate the system to make it appear as though they are selling a legitimate steal of a ride, only for the buyer to find out later that what they actually bought was a lemon.  A lemon car is the universal term for a vehicle that is found to be defective only after being sold.  They can be new or used, with the new side usually coming off the production line with defects in the mechanics or a specific part that has either been overlooked or ignored by manufacturers.  If this is the case, these cars will usually be recalled by makers to replace any hazard.  For used lemons, they can be rundown and disguised by the selling party in order to pawn it off on an unsuspecting victim.  They may run fine for a stretch of miles or at a certain speed, but given time and distance will fall apart.  There is much legislation regarding lemon vehicles that protect buyers from dishonest sellers, but pre-owned vehicles are mostly outside the law as it is more of a case of buyer beware.

There are countless other ways one can be tricked into buying a lemon car.  Dishonest dealerships have a bag of methods that play into this.  Replacing the VIN number of a car, failure to disclose the vehicle history and rolling back the odometer are a few of these.  Most of this can be countered by getting a vehicle history report from such providers as CarFax and AutoCheck.com.  These companies will provide anyone with the accident history of any given VIN number.  If the report comes up as salvage and the seller doesn’t mention this, which should be an alarm that the vehicle may be a lemon.

The importance of a test drive is everything.  Knowing what to look for in a test drive is more than kicking tires and starting engines.  Smoke and sound is a huge factor.  It is always recommended that you contact a trusted mechanic in regards to any vehicle you are thinking about purchasing.  They know better than you and having them at your disposal is the same as having a seat belt in a snow storm.  Still, something as simple as asking why the seller is selling the vehicle can set off alarms as well.  Watch and listen to their responses as you rifle through questions about the engine, the history and previous maintenance.  You don’t need to be a detective to tell if someone is trying to hide a crucial defect from you.  All you need is awareness and understanding to turn a potential fraud mistake into a well informed decision.

Check in with us regularly as we bring you more advice regarding automotive fraud prevention.  As always, you can find us at One Stop Motors!

Tyler Baker; OSM Writer

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