How do I protect myself from car-buying and vehicle scams?
Run a VIN check, have any used vehicle inspected by an independent mechanic, and never pay a deposit for a vehicle you have not seen in person — especially if the seller wants wire transfer or gift cards.
Last reviewed: 10 June 2026
Explanation
Vehicle fraud costs buyers significant sums because the price points are high and the transactions happen relatively infrequently, making buyers less experienced at spotting manipulation. The most common types are: odometer fraud (rolling back the mileage to hide wear), salvage-title washing (disguising a written-off vehicle as a clean-title car), online vehicle listing scams (non-existent cars requiring a deposit to 'hold' them), and curbstoning (unlicensed dealers posing as private sellers to avoid consumer protections).
A VIN history report from a service such as Carfax or AutoCheck checks reported mileage history, title status (clean, salvage, lemon-law buyback), accident history, and previous ownership. While not infallible, it catches a significant proportion of odometer and title problems. Cross-check the VIN on the report against the VIN plate on the dashboard and the VIN stamped on the door jamb — any mismatch suggests tampering.
For used vehicles, an independent pre-purchase inspection by a mechanic you choose (not one recommended by the seller) is the single best investment. A good inspection reveals rust, flood damage, undisclosed accident repairs, and mechanical issues that a seller has not disclosed. Budget the cost of the inspection into your decision — it is far cheaper than discovering major problems after purchase.
For online listings: never pay a deposit to hold a car you have not seen in person. Fake online vehicle listings frequently feature attractive cars priced below market and a seller who is 'moving abroad' or 'in the military' and needs the car moved quickly. They request a deposit before you can view the vehicle. This deposit is the scam; there is no car.
Common red flags
- Seller asks for deposit before you can view the vehicle in person
- Vehicle priced significantly below market with a vague explanation
- Seller cannot meet in person due to being overseas, in the military, or 'on assignment'
- VIN history shows salvage, flood, or lemon-law buyback title
- Reported mileage jumps backward compared to previous inspection records
- Seller insists on cash, wire transfer, or cryptocurrency and discourages bank financing
What to do now
- Run a VIN check on any used vehicle before negotiating a price
- Arrange an independent pre-purchase inspection before signing any contract
- Never pay a deposit to hold a vehicle without seeing it in person first
- Verify the seller's identity and, for dealer transactions, check their dealer licence number
- Pay by certified cheque or finance through a bank rather than cash or wire transfer
- Report vehicle fraud to your state's DMV or attorney general's consumer protection office
Frequently asked questions
What is title washing?
Title washing is the practice of re-registering a vehicle with a salvage, flood, or rebuilt title through a state with looser title-history requirements to obtain a clean title. A VIN history report from multiple sources and a physical inspection by a mechanic can sometimes detect washed titles.
Is it safer to buy from a dealer than a private seller?
Licensed dealers are subject to consumer protection regulations and lemon laws that private sellers are not. However, some curbstoners impersonate private sellers while operating as unlicensed dealers. A dealer with a verified dealership licence and physical lot provides more legal recourse if something goes wrong.