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”.

Title washing scam results from the lack of a unified law regulating vehicle documentation in all the states. Title washing is used by car owners to “erase” the vehicle’s bad history in order to conceal from the buyer that it had a salvage title because of flood, severe accident or other damage. Title washing incidents increased after hurricane Katrina when many car dealers got stuck with excess of flood-damaged vehicles. Title washing is also frequently applied to “clipped” vehicles with the back and front coming from different cars, or rather of what was left of them after a crash.

The process of title washing is very simple. Here is how it is done. A car that is totaled by the insurance company is given a salvage title, which is often called “branding”. Then it can be repaired and resold with a low resale value. So, the car is transferred to states that don’t recognize the current title and assign it a new, clean tile. Title washing erases the branding and the car’s sale value rises again. Remember that title washed vehicles are sold not only by dealers but by individuals as well.

To avoid becoming a dealer scam victim perform VIN number check and get vehicle history report to reveal the truth about the car’s title. Once a car is assigned a salvage title this information is added to the computer database of services that provide vehicle history reports. These records remain in the database even when the car is transferred to other states.

VIN number check will protect you not just from title washing but from many other used car flaws, for example odometer rollback, salvage title or a flood damaged car.

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.

It has been shown that one out of three used cars has something to hide. That could be outstanding credit, odometer rollback, etc.. That is why car dealer fraud cases are amongst the most common issues.

Vehicle cloning is a used car fraud that has become rather widespread today. To avoid being a victim of such a  auto scam, follow our tips given below.

1. Registration papers: The registration papers give you some initial information about the vehicle. Make sure the license plate on the car matches the number on the registration papers. Make sure the owner’s name matches the seller’s – and ask for a picture ID.

2. Maintenance records: Other papers that you should inspect very carefully are the maintenance records, which are not only a good way to see if the car was stolen (thieves never have the maintenance records), but also give you a hint of how well the car has been taken care of.

3. Vehicle identification number: Check the VIN which should match the number on the title and registration. The VIN is located on the driver’s side above the dashboard, inside the driver door and under the hood. Look for any signs that may indicate tempering with these numbers. If the windshield contains any slight damages, there is a strong possibility that the VIN has been replaced. If so, the car is probably stolen.

4. Insurance: Ask to see the insurance papers and check that everything matches. If the vehicle is uninsured, it might be stolen or have other problems. If the dealer cannot provide insurance papers, this is probably not a car to buy. If they do provide the papers, call the insurance agent for verification.

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.

Title washing is used by car dealers for “washing” the vehicle’s bad history in order to conceal from the buyer that it had a salvage title because of severe accident, flood or other damage. Title washing incidents reached their outbreak after hurricane Katrina when many car dealers got stuck with excess of flood-damaged vehicles.  Title washing is also applied to “clipped” vehicles with the back and front coming from different cars, or rather of what was left of them after a crash. So, a wreck is sold at the price of a good car.

Title washing scam results from the lack of a unified law regulating vehicle documentation in all the USA states. Many people who bought used cars are already car title washing scam victims.

So how is title washing done? A car that was totaled by the insurance company is assigned a salvage title, which is often called “branding”. Then it may be repaired and driven, but its resale value lowers, along with the possibility to sell it. As a result, the car is transferred to states that do not recognize the current title and is assigned a new, clean tile. Title washing erases the branding and the car’s value rises, and now it is easier to sell. Remember that title washed vehicles can be sold not only by car dealers but by individuals as well.

To avoid title washing perform VIN number check and get vehicle history report for revealing the truth about the car’s title. Once a car is assigned a salvage title, the information is added to the computer database of services providing vehicle history reports. These records remain in the there even when the car is transferred to other states.VIN number check protects not only from title washing but also from many other used car flaws, for example salvage title, odometer rollback or a flood damaged car.

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.

Car dealers usually use odometer rollback to raise the value of a car. This practice of car dealer is illegal. The higher the mileage of the vehicle the less you pay for it, that’s why if you consider buying a used car you should always check the vehicle’s odometer. It is a good idea to start by checking the vehicle’s history. Do the following:

• Checking the inspection sticker for mileage at the car’s last inspection;
• Have the car inspected by a qualified mechanic;
• Asking sellers who sold the vehicle previously for copies of the vehicle’s odometer disclosure forms;
• Checking oil change stickers (usually inside the door frame);
• Get a title search from your state’s Department of Motor Vehicles.

In case you believe your car dealer committed an odometer rollback, you have the right to sue them in federal or in state court under the federal Motor Vehicle Information Cost Savings act. Some states may have specific laws regarding odometer fraud, that’s why it is a good idea to check these laws with your state’s Attorney General and county prosecutors.

Buying a used car isn’t easy because it may entail a series of future problems and financial headaches. That’s why a free vehicle history report is an excellent choice for anyone who is  buying a used car. Why? Because it will give you the peace of mind to go ahead with your purchase. For instance, if the car is in such bad shape it’s been given a salvage title, it would be far better to know that before you sign on the dotted line.

Unfortunately, there are many unscrupulous people ready to misrepresent the condition and value of the cars they are offering for sale. The most common of the various used car scams is the odometer rollback. The odometer is a device inside the car which indicates the distance that the vehicle has traveled. You may have seen it as a row of numbers inside the speedometer. One of the main variables in determining the price of a car is mileage.

An average car in the United States travels approximately 15,000 miles per year. So, if you want to buy a used car that was made in the year 2000, you should expect to see about 90,000 miles on the odometer. If it reads 150,000, the car has received heavy usage and may not be worth as much since maintenance costs may be high. But what if the odometer reads only 50,000 miles? In that case, you need to be suspicious. Unless it was owned by an old lady who used it for short neighborhood errands, the odometer may have been tampered with.

Don’t be fooled into thinking that a newer, digital odometer is more impervious to such alterations. All that is required is a laptop computer, the software, some cables and a basic set of instructions. Need an example? Just enter some basic keywords in any Internet search engine like “how to reset odometer” or “unhooking odometer.” You will find that there are dozens of pages with the required information.

When you purchase a car, truck, motor home, motorcycle, or other vehicle from a car dealer, the dealership obligated to disclose to you the correct information about the history and condition of the vehicle that you are buying. The failure of the dealership to disclose any such information is referred to as dealer fraud.

Some other dealer practices that constitute dealer fraud include odometer rollback, the failure to disclose prior accident damage, such as flood damage, the failure to disclose that the vehicle was a lemon law buy-back, and the failure to reveal that the vehicle has a salvage title.

Dealer fraud can lead to serious safety hazards, one of which is costly repairs. If you think you’ve been a victim of a dealer fraud the first thing you should do is to contact a dealer fraud attorney, who will review your case.