10 Ways to Avoid Used Car Fraud when buying a used car, truck, SUV or minivan in Edmonton and surrounding areas
As with any major purchase, you need to do your due diligence before buying a used car to make sure the vehicle is right for you and to avoid any scams. Here are 10 tips to help ensure you get a great deal and a great car:
You should always question a deal that seems too good to be true.
If the price seems too low or the seller does something that sets off your alarm bells, walk away from the sale.
Beware of curbsiders.
A curbsiders is an unlicensed individual, dealer or retailer who buys up vehicles and Instead of registering them under their own name, will post the same vehicles for Sale with a mark-up. The curbsiders might misrepresent the real condition of the car or hide major issues.
Get the Carfax report.
This report provides you with the complete history of the vehicle including accident information, registration details, cross-Canada lien information and full U.S. history. Ask the seller for a report or buy your own to ensure you know the full story behind the vehicle.
Check out the dealer.
If you’re buying your used car from a dealership, then look into the dealer’s background and reputation. Each province has a governing body that issues dealer licenses, a requirement in order to legally sell vehicles in Canada
Look for liens and stolen cars.
The Carfax report will tell you if there are enforceable liens from anywhere in Canada on the car. A lien is an ownership interest that a vehicle owner grants to a party, as security or collateral for a loan. A Carfax report can also tell you if a vehicle is marked as actively stolen.
Verify the seller’s identity and the VIN.
Ask your seller for proof of identity and check that the seller’s Name and address matches up with the owner information on the vehicle registration form. This is also a good time to double check the make, model, year, color, license plate and vehicle Identification number (VIN) of the car against the registration form.
Check for odometer rollbacks.
Have a look at the actual odometer – do all of the numbers line up and is there any evidence of sabotage (scratches, cracks) in and around the odometer? Does the wear and tear of the vehicle show more use than the mileage would indicate?
Double check the condition of the car.
Give the inside and the outside of the car a thorough inspection and take a test drive to make sure the car is in the same condition that the seller is advertising.
Don’t pay before you get the vehicle.
Never agree to pay for the vehicle upfront or send money via wire transfer. If the seller requests a third-party escrow service, investigate the service to make sure it’s legitimate, as many online escrow sites are fraudulent.
Take the vehicle for a pre-purchase inspection.
Get an independent, licensed mechanic to give the vehicle a detailed inspection. Bring your Carfax report with you as you’ll want to verify that any damage was properly repaired.