Used car scams unveiled

Buyers of used cars face a one in three chance of discovering a hidden problem after purchase.

This is according to HPI, which had identified the most common scams and problems.

HPI has pulled together the following list of scams and problems to be aware of when buying a used vehicle, together with how to avoid making a costly and potentially dangerous mistake.

Clocking is one of the simplest scams going and most common, especially if the car being sold has a digital odometer. Customers are advised to always go through the car’s service history and check the mileage for each year – see that it goes up steadily and that it doesn’t suddenly drop. Finally, make sure that when collecting the car it shows the same mileage as when it was first viewed. It’s not unknown for the mileage to be reduced for a viewing, then to go back up once the car is being collected.

Cloning is when a car is stolen and given the identity of an identical car which is legitimate.

Ringed cars are like cloned cars, in that they are stolen then given a new identity. The difference is that the stolen car assumes the identity of a written-off car. This in itself should arouse suspicious, but selling a written-off car isn’t illegal; selling one that’s been stolen clearly is.

To protect against buying a ringer, make sure the chassis number on the car matches the one on the V5C, look for evidence of the chassis plate having been tampered with and ensure you’re viewing the car at the address on the V5C.

Cut and shut is arguably the most dangerous scam of all, as it’s the only one where the car is definitely sold in a seriously unsafe condition. It works by buying two cars, cutting them both in half, then welding those two halves together. Such cars have no structural integrity and in an accident would literally fall apart. Avoid buying a cut and shut by looking closely in the door shuts, around the top of the windscreen, underneath the seats and across the underside of the car for signs of welding.

The hire car scam hinges on hiring a car then selling it, which is obviously illegal but people do it anyway. The key is to make all of the usual basic checks, including analysing the car’s Registration Document (V5C). If that’s not to hand, walk away.

Fake escrow accounts allow buyers to deposit cash with a third party until a transaction has been completed, so both sides have some level of security. The buyer deposits money in the account and the car vendor will then disappear – with the buyer’s money. Even though it looks professional the escrow service is fake. The key is to see if the escrow service is registered with Companies House and check with Trading Standards too.

Meanwhile, some vendors put buyers under pressure to leave an unnecessarily large deposit to secure a car. However, a small deposit will show that you’re equally serious, but always get a receipt. There is still a danger of being ripped off but this is a good way to limit any potential losses.

Barry Shorto, head of industry relations at HPI, said, ‘Buying a used car can be stressful enough without having to worry about whether or not the seller is trying to rip you off. There are a wide variety of potential pitfalls facing used car buyers. It could be that the car is stolen or subject to outstanding finance or it may have been clocked at some point. Despite there being so many ways for buyers to be caught out there are also numerous ways to ensure they are prepared and protected.’

In addition by following these four simple steps will also help prevent drivers being scammed in the majority of cases: always pay with a banker’s draft, not cash; view the car at the address on its Registration Document (V5C); and don’t rely on just a mobile phone number to communicate with the seller.