Buying a car—whether new or used—can be exciting, but it also comes with risks. Scammers often target car buyers, especially those purchasing from private sellers or online platforms. Knowing how these scams work is your best defense.
Here are the top 7 car buying scams and how to avoid them so you can drive away with peace of mind, not regret.
1. Odometer Rollback Scam
🚨 The Scam:
The seller illegally rolls back the vehicle’s odometer to make it appear like it has fewer miles, increasing the car’s value.
🔍 Warning Signs:
- The car looks overly worn for its mileage (worn pedals, seats, steering wheel).
- No consistent service records.
- Digital odometers show a suspiciously low number for an older car.
✅ How to Avoid:
- Check the car’s history report (CARFAX, AutoCheck, etc.).
- Review maintenance records for mileage consistency.
- Have a trusted mechanic inspect the car.
2. Title Washing
🚨 The Scam:
Cars that were written off as totaled (due to floods, accidents, etc.) get a “clean” title in a different state to hide their damaged history.
🔍 Warning Signs:
- Inconsistent vehicle history across different states.
- The seller hesitates to provide a vehicle history report.
- Unusual rust or water damage under carpets or seats.
✅ How to Avoid:
- Run a full VIN check to view title status and previous locations.
- Avoid buying from sellers who won’t provide a full history.
- Be extra cautious when buying cars from states recently affected by floods.
3. Fake Escrow Services
🚨 The Scam:
You’re asked to send payment through a fake escrow or shipping service that promises to hold the funds until you receive the car—but the seller and escrow site disappear after the payment is made.
🔍 Warning Signs:
- The seller insists on using a specific payment or escrow service.
- Website looks unprofessional or mimics a well-known brand.
- Too-good-to-be-true pricing with urgent selling reasons (military deployment, divorce, etc.).
✅ How to Avoid:
- Never use an unknown escrow service—verify it first.
- Avoid sellers who won’t meet in person.
- Use secure and traceable payment methods.
4. VIN Cloning
🚨 The Scam:
A stolen car is given a Vehicle Identification Number (VIN) from a legally registered car of the same make/model to hide its true identity.
🔍 Warning Signs:
- VIN plate looks tampered with or mismatched.
- Title details don’t match the VIN on the car.
- Seller refuses a VIN check or inspection.
✅ How to Avoid:
- Run a full VIN check online.
- Check that the VIN on the car matches the title, dashboard, and driver-side door label.
- Cross-check VIN history with state DMV records if in doubt.
5. Curbstoning
🚨 The Scam:
An unlicensed dealer poses as a private seller to avoid legal responsibilities and hide the true history of the car.
🔍 Warning Signs:
- Seller has multiple listings or cars for sale.
- Title isn’t in their name, or they claim to be selling it “for a friend or relative.”
- They meet you in parking lots or public spaces—not at their home.
✅ How to Avoid:
- Always ask to see their ID and match it to the name on the title.
- Research the seller’s phone number—if it’s linked to multiple ads, beware.
- Use platforms that verify sellers, or buy from licensed dealers.
6. Down Payment Disappearing Act
🚨 The Scam:
The seller asks for a down payment to “hold” the car, then vanishes with your money before completing the sale.
🔍 Warning Signs:
- Seller pressures you to pay quickly to secure the deal.
- They ask for payment via wire transfer, gift cards, or cash apps.
- The car is always “out of town” or unavailable to see in person.
✅ How to Avoid:
- Never send money without physically seeing the car.
- Avoid paying deposits unless through a reputable platform with guarantees.
- Meet the seller in person and verify their identity.
7. Fake Online Car Listings
🚨 The Scam:
Scammers create fake listings using stolen images and offer vehicles at below-market prices to lure in victims.
🔍 Warning Signs:
- Car is priced significantly below market value.
- Seller has poor grammar in messages and avoids phone calls.
- They insist on shipping the car and won’t meet in person.
✅ How to Avoid:
- Use reverse image search to check if photos are stolen from other websites.
- Never buy a car without an in-person inspection and test drive.
- Verify the seller’s contact details and background.
🧠 Final Tips to Protect Yourself
- Always inspect the car in person before making a payment.
- Bring a trusted mechanic to evaluate the vehicle.
- Use secure payment methods (bank transfer, escrow, or cashier’s check).
- Verify the title and registration with local authorities.
- Don’t be rushed by urgency tactics—take your time to research and confirm.
✅ Car Buying Safety Checklist
| Step | Completed? |
|---|---|
| Get a vehicle history report (VIN check) | ✔️ |
| Match seller ID to title documents | ✔️ |
| Inspect the car in daylight or with a mechanic | ✔️ |
| Avoid upfront payments to unknown sources | ✔️ |
| Confirm escrow or payment service is legit | ✔️ |
| Check for consistent mileage and title records | ✔️ |
Buying a car can be one of your biggest purchases. By being aware of common scams and staying cautious, you’ll not only protect your money—but also gain the confidence to make a safe, smart decision.
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