Oct 09 2008
Did the salesperson lie to you about the condition of the vehicle?
One of the most common forms of auto fraud is the practice of misrepresenting the true condition of the vehicle. Dealers often tell buyers, “The car is in excellent condition.” Unfortunately, they are not always telling the truth. Do not be fooled just because a vehicle appears cosmetically clean and mechanically sound. If the vehicle you are interested in comes without a warranty or “as is,” you should be extra cautious.
Vehicles that have been wrecked, declared a total loss by an insurance company, or rebuilt have what is called a salvage title. The title of the vehicle (and registration) must disclose that the vehicle is a salvage. It is unlawful to sell a salvaged vehicle without telling the buyer. The price of a salvaged vehicle is generally much less than an equivalent non-salvaged vehicle. Salvaged vehicles may have major safety defects depending on how well it was rebuilt. It is usually not very difficult to find out whether or not a vehicle is a salvage.
Other vehicles may have been wrecked and rebuilt, but were not declared a total loss by an insurance company. These types of vehicles are much harder to identify because they do not carry the salvage title.
To avoid this practice, you should have the vehicle you are interested in inspected by a mechanic and/or an auto body repairperson before you buy it. You should also get a vehicle history report. You can get summary title reports from service providers such as: Carfax (www.carfax.com), AutoCheck (www.autocheck.com), and CarFraud.com (www.carfraud.com). Look for evidence of a salvage history. For example, if an insurance company held title to the vehicle, it could mean that it was wrecked and declared a total loss. In more complicated cases a complete title history may be obtained from the DMV.
If you suspect that you have been a victim of this type of fraud, you may wish to consult with an attorney who specializes in auto fraud.
