Dealer Fraud

Odometer is an instrument indicating distance traveled by a vehicle, but criminals are using various instruments to roll back the milometer to sell the vehicle at a higher price.

Odometer rollback schemes represent a high profitable car dealer fraud. In addition to an old machine with false mileage you also get a car which will most likely need more maintenance and repair, thus almost guaranteeing you a return to the car repair shop. And of course the result is more money to be paid by you. Only a low percentage of odometer fraud is executed by amateurs, usually this crime is associated with intelligent organizations or individuals who develop complicated schemes very difficult to detect and investigate. Not only the end consumers are affected by this car fraud, but also legitimate re-sellers.

Recently car manufacturers make use of digital mileage meters because they are cheaper to produce than a mechanical dashboard and easier to fit into the car as there is no mechanical speedometer cable.

Another reason for developing digital odometers was to alleviate the problem of odometer tampering. Electrical pulses in the car wiring may cause the dashboard data, which is stored internally on an EEPROM (Electrically Erasable Programmable Read Only Memory), to become corrupted due to a car accident or a simple mistake in electronics. Therefore, of course, also a tool exists to “correct” the mileage numbers who were displayed incorrectly.

Unfortunately just as quickly as the technology was developed, scam artists learned how to use it for the wrong reasons. It is similar to computer hacking, with the right software and hardware you can penetrate right into the system making the desired changes. You can purchase these tools anywhere in a car shop or online. Since digital odometers don’t have any visible moving parts they are even harder to detect than traditional mechanical odometers, so the vehicle’s condition and a detailed history report are the best clues a buyer has for determining whether clocking has occurred. Legally this service is displayed as “mileage correction”.

According to statistics used car buyers have a one in three chance of buying a vehicle that’s subject to car dealer fraud. But with some care you can avoid them and find the car of your dreams.

What Scammers Do?

* Selling a car that’s been repaired after an accident. The frame might be bent then re-straightened, or any number of faults could be covered. Obviously, they are not going to tell you that - they simply want to sell the car. Buy it and you could be riding a death trap.

* Selling stolen vehicles. Only two-thirds of cars stolen each year are recovered. Many stolen cars are re-sold. If you’ve bought a car and the police find it, they’ll take it. In theory you can pursue the seller for your money - but what are the odds of finding him?

* Selling a car that’s not paid for yet. If you knew about the debt, the finance company can take the car from you. You can keep it if you didn’t know - but how do you prove it?

How to Avoid the Scam?

* Make sure the seller may produce all the proper documentation, and that the car has a VIN number.

* Remember that a car more than three years old must have MOT certificates. Check it to avoid odometer fraud.

* Always ask to see a seller’s proof of identity. If it’s a private sale, look at their insurance policy.

* Find out about the vehicle’s history before you buy. The AA or the HPI can tell you.

* Have the vehicle checked. You can bring in your own mechanic or trust a motoring organization.

* Never buy from anyone who’s selling a car in a motorway service area - that’s asking for trouble. If possible, go to the seller’s house.

* Watch out for ads where car dealers pretend to be private sellers. In this case they dodge some legal obligations and are probably trying to sell a car they can’t sell otherwise.

Buying a used car is always the best option for customers who can’t afford a new car. Used car dealerships are the most convenient places for finding used cars at a discounted and moderate price. The pre-owned cars are usually sold through independent dealers, franchises, rental car companies, auctions, private sales and leasing companies.

Buying used cars is most popular in California. The comparatively low price and the opportunity to save a rather big amount of money attacks a lot of car buyers. However, buying a used car may sometimes be complicated. Used cars may have hidden mechanical problems, in some cases they may have been previously wrecked and rebuilt.

Very often car dealers sell you these cars without disclosing the problems and the history of the vehicle. These are typical cases of car fraud. That’s why you should always get a vehicle history report of the vehicle you consider buying. Vehicle history reports are very easy to get. They protect you against purchasing used cars with costly hidden problems. The reports contain any information about accidents or major repairs, any lemon law buybacks, odometer fraud and other relevant data on the vehicle.

In some cases buying a used car makes more sense than buying a new car, especially for those consumers who are trying to save money or invest it on something else. This allows you to get a new car and trade in the old one.

Generally customers need some knowledge to avoid becoming a dealer fraud victim. They need to know how to act and what to ask dealers when entering the car dealership. Here are some tips that will be rather helpful when dealing with car dealers to prevent odometer fraud.

1.    Inspect the vehicle carefully to make sure that its actual condition matches the mileage that is indicated in the odometer.

2.    If you think the vehicle you are going to buy has been repainted, search for the parts that have been replaced. Paint is sometimes used to cover the older parts, thus giving the vehicle a newer look.

3.    Look in the left door frame, as well as inside left front window, under the hood, in the glove compartment or in the trunk for maintenance and oil change/lube stickers that might contain accurate mileage information.

4.    If you consider buying a vehicle advertised or represented as part of a fleet than you should be twice careful. Be wary of these vehicles especially if the odometer shows low mileage.

5.    The numbers on the odometer gauge should be aligned properly. Misaligned or crooked numbers might be a sign of odometer tampering.

6.    Ask the car dealer to provide you with a written statement of the actual mileage disclosed on the odometer at the time of purchase. If they refuse to provide that document, you may already have a claim under the Truth in Mileage Act.

Odometer fraud is the practice of rolling back odometers to make it appear that vehicles have lower mileage than they actually do. Odometer tampering is not only illegal, but expensive. Because the buyer thinks the car has fewer miles, he/she pays more for the car - and more in insurance and repairs.

Things You’ll Need:

•    Compare the current mileage on the odometer with mileage shown on the vehicle’s maintenance or inspection records.

•    Check the tires. The car’s original tires should last for some 60,000 miles, so new tires on a car with low mileage should alert you to take a closer look.

•    Look for things that indicate the mileage of the car. Oil change reminder stickers, service receipts and warranty cards will usually have the mileage noted.

•    Have a reputable mechanic inspect the car. The mechanic should look for signs of wear on the engine, suspension and steering, as well as problems with the emissions system. These areas will show signs of high mileage.

•    Be especially alert when buying certain models. Popular models for odometer rollback include sport utility vehicles, Chevy Luminas, Ford Tauruses and Chrysler minivans.

•    Ask the DMV for the car’s title history and its previous owner’s name. You need to provide the DMV with the VIN (vehicle identification number). Reconsider buying this particular car if the title shows it was sold several times in a short period.

•    Be wary of retired, low-mileage fleet vehicles. Dishonest buyers will clean the car up, put on a new brake pedal cover, roll back the odometer and resell it for a tidy profit.

As the price of new vehicles increases, there is more and more interest in used cars and subsequently odometer tampering has become a very lucrative fraud. Here are the varieties of odometer fraud.

• False or Altered Titles – A clear title is much more valuable than a wrecked or damaged car title. This car scam occurs when a dealer purchases a high mileage vehicle and subsequently resells it with falsified, reduced odometer reading. This is accomplished simply by tampering the high-mileage figure noted or by obtaining a new automobile title with a false mileage figure before reselling the vehicle. A professional calligrapher can perform excellent quality title alterations, which are often invisible to the naked eye.

• Reassigned Titles – In most countries licensed automobile dealers are allowed to transfer vehicle titles without re-registering them. How? A car dealer’s reassignment of the title can be attached to the original title. Numerous title reassignments can accompany an original title, as well as the washed title. A car dealer may also discard the prior reassignments of title, making it difficult to trace ownership of the vehicle.

• Title Laundering – This car scam occurs when a wrecked car’s title is replaced by papers bought in another country. A car dealer discards the previous title, then registers his/her vehicle in another state with the altered odometer and assigns the title to a company, then reassigns it back to himself/herself, now having his/her car registered with the new mileage.

• Odometer Clockers – A dealer does minor labor to the car, replacing or changing the noticeable dings and dongs. Mats, gas, floor, brake pedals, tires can be replaced. A clocker turns back the odometer with common tools such as picks, wires, screwdrivers, electronic and digital tools. Cars odometers can be rolled back in masses, because a good clocker can do this job in a matter of minutes.

Odometer rollback may inflate the resale value of a high-mileage vehicle and increase repair costs down the road. Anyone buying a car checks the odometer since a vehicle’s mileage affects its value. The higher the mileage is the less you pay and vice versa. This makes tampering with the odometer rather tempting car dealers. Rolling back the odometer puts a little extra money in their pockets. Think about how much money a car dealership could make doing this. Several dishonest car dealers have been caught red handed engaging in odometer rollback scams. The dealer makes extra money and you are stuck with a vehicle that’s not as good as you thought it was.

Falsifying odometer readings can be very costly to you. The first is obvious; you will pay more than you should have for the vehicle. Another is that the maintenance will cost you more than you expected. Older cars with high mileage require frequent servicing. This is where an odometer fraud will hit you right in the pocketbook. Car repair costs add up quickly. That’s one reason dealers roll back odometers. Sometimes it’s the only way they can sell high mileage vehicles.

Odometer tampering is forbidden by state and Federal laws. In addition, law requires dealers and individuals selling cars to provide purchasers with accurate odometer information. For instance, car buyers have a right to know the full amount of miles on the odometer and must be told if that mileage reading is accurate to the best of the sellers’ knowledge. Tampering with the odometer to make it appear that a car has been driven fewer miles than it actually has is illegal. It’s also illegal to disconnect your odometer with the intention of deceiving. Disconnecting an odometer for maintaining car value is in violation of the law.

Odometer fraud is becoming more common than ever. So you need certain knowledge in order not to become a dealer fraud victim.  In this blog we will continue discussing the steps that may help you discover odometer fraud.

Check interior condition

Check the driver’s seat, driver’s door inner handle, steering wheel, power window control buttons and the pedals for excessive wear. It’s especially easy to catch if you have already inspected few cars of the same model - if the previous vehicle you looked at had less wear inside but the mileage was higher then it’s very possible that the one you’re looking at has the odometer rolled back. So you should first of all

•    check the glowbox for any service receipts
•    check the maintenance book for service records
•    examine the driver’s door or the windshield for any oil change stickers.

Check the tires

On an average passenger car, tires usually endure from 35,000 to 50,000 miles. For example, if you’re checking a car with 25,000 miles on the odometer, it’s most likely supposed to have original tires with about 30-40% of tread material remaining. If you notice that new tires are installed, be suspicious. Try to find the production date that is stamped on the tires: each tire has a DOT mark, which confirms that the tire meets the US Department of Transportation tire safety standards. The last digits of the DOT number show the week and the year of production.

Don’t forget about mechanical inspection

Have a vehicle inspected by an experienced mechanic of your choice whom you will totally trust as a last step prior buying a used car.

However, if you have  failed to discover odometer fraud for some reason, your only option is finding a qualified dealer fraud attorney.

Odometer fraud continues to be a serious issue today. More than 450,000 vehicles, according to 2002 NHTSA estimate, are sold each year in US with false odometer readings.
Today almost all modern cars have electronic digital odometers which are supposed to make the tampering with the mileage more difficult. However, it turns out, that electronic odometers are even easier to roll back having a special software. So how can you discover odometer fraud?

• Check the car history records

Check the used car history report - even though it will not give you a 100% guarantee that the car is perfect, it’s well worth the money spent. The car may turn out to be not even worth a look. A car history report may help you to uncover not only the mileage rollback, but also the potential problems car might have had in the past such as accidents, flood damage, rental use, etc.

• Have a look under the hood.

There should be a paper record with mileage and date wrapped around some of the A/C lines, if the Airconditioning system has been serviced,
If the timing belt has been replaced, there should be a sticker that states when and at what mileage the timing belt has been replaced.

• Have a close look at the odometer

If the odometer is mechanical, take a close look at the digits. Are the digits straight? Do the odometer readings actually change when the car is driven? Try to look for fingerprints, scratches or any other signs of odometer tampering under the plastic cover (glass).

These are some of the tips that may help you avoid dealer fraud, however if you are already a victim of dealer fraud, don’t hesitate to contact a dealer fraud attorney in your state.

Rolling back car’s odometer to increase its resale value is one of the oldest tricks in the book but there are ways for consumers to detect this dealer scam.

Odometer rollback is harder today than it was thanks to computer technology and the availability of vehicle history reports. Some savvy individuals and unethical car dealers, however, are finding new ways to turn back the clock on the cars by rolling back their odometers and selling them for more than they’re worth.

To help consumers to detect signs of  their car’s odometer  tampering, we’ve put together a list of things to look for.

• First of all, use CarFax or AutoCheck to request a copy of the vehicle history report. This includes state registration and emission inspection data and much more.

• Examine the dashboard for scratch marks or loose screws. They could indicate that your odometer has been tampered with. However, it’s a sign of normal maintenance as well including light bulb replacement.

• If the odometer is of the older, analog variety rather than digital, then check to see if the mileage numbers are aligned. Give the 10,000 digit a careful examination.

• Pay attention whether during a test drive the car odometer sticks or not.

• Check for service stickers (tune up, oil change, etc.) that may have the vehicles true mileage. Check under the car’s hood and inside the door.

• Check the owner’s manual for maintenance records. If it appears that pages were removed, ask about it. This is a red flag.

• If you’re purchasing the car from a dealership, ask whether they have done a computer check. In case they have done, find out whether they have found any warranty records.

• Ask for a moment to look at the vehicle’s title. Look closely for signs the mileage has been altered.

• Note the title’s issue date. Was the vehicle sold soon it was issued? Be careful if it was. This is a common way curbstoners mask a vehicle’s actual mileage.

• Are there signs of wear? Check the carpet, arm rests, steering wheel, and pedals. A lot of wear could be a sign the car has more miles on it than the odometer indicates. If any of these parts look new, too new, it could be a sign the owner is trying to hide something, that is a sign of odometer fraud.

• Ask a trusted mechanic to do a vehicle inspection. The inspection includes looking for signs of odometer tampering.