Uncover Fraud with a Vehicle Report

Vehicle record checks can prevent you from becoming a victim of one of the many types of fraud common among used-car sellers. A quick glance at a vehicle history report can reveal odometer rollbacks, title washing, and other fraudulent behaviors.

Odometer Fraud

One of the components of vehicle history reports is a mileage accuracy check, which will tell you how many miles the car's odometer should display. If you find a discrepancy, you know that the seller has rolled back the odometer, or committed mileage fraud. As a buyer, you need to have an accurate estimate of the mileage, as it directly affects the price of the vehicle. Experts estimate that rolling back a vehicle's odometer only 10,000 miles can inflate the sale price of the vehicle by $600.

Not all odometer fraud is intentional, but it can all be prevented with vehicle record checks. For example, studies show that 40 percent of leased vehicles have been subjected to some sort of scam, usually odometer fraud. Unwilling to pay the expensive mileage penalties to the dealer, the drivers of leased vehicles often roll back the odometer when they turn the vehicle back in to the dealership. Remember that digital odometers are not impervious to fraud; anyone who has the right software program and a laptop can alter the vehicle's computer digitally.

Title Washing

Another type of fraud vehicle record checks detect is title washing, which happens when one state does not recognize car titles from another state. Dishonest sellers bring bad vehicle into different states frequently, but your vehicle history report will tell you every time your vehicle has crossed state lines via titles. For instance, if the vehicle was branded in a different state with a salvage title, your report will reflect this. A salvage title indicates that an insurer declared the car a total loss. Although the vehicle may still be drivable, a salvage title drastically reduces a car's value.

Curb Stoning

The last type of used-car fraud is called curb stoning, which usually happens when a dealer has a vehicle that is damaged or otherwise undesirable that he cannot sell. The dealer will then pass the vehicle off to a salesperson to place the vehicle for sale in the classifieds, masquerading as a private-party sale. If this has occurred, vehicle record checks will tell you that the car's titles changed hands recently, suggesting the vehicle is branded or a lemon. Buyers should always be suspicious if they find that the name of the seller differs from the name on the car title.