When you’re buying a used car you need to have your wits about you, as there are some nasty people out there intent on defrauding you. We told you about the dangers of buying a car that’s still on finance in our recent blog (a practice sometimes known as asset fraud) (https://goo.gl/7zNJCV), but there are all sorts of other ways in which you can be defrauded when buying a car, so tread very carefully…

Clocking
Buyers don’t want high-mileage cars, which is why some sellers turn back the clock when they want to shift one. By reducing the displayed mileage, a car will be more attractive to a buyer – and more valuable.
The digital odometers fitted to many new cars are easy to adjust with the right software. However, clocking a traditional analogue odometers means removing it from the dashboard, so see if this sports any scratches or damaged screw heads that give the game away.
Also check the service history including old MoTs. These will display the mileage, which should increase steadily. If it suddenly drops, there will be a distinct odour of rat.
A car’s mileage can also be reduced when it’s up for sale, but once money has changed hands, the odometer reverts to its true reading. So check the reading doesn’t increase between buying the car and collecting it.
Ringing
A car can be stolen, then given the identity of a written-off car; it’s a practice known as ringing. While this should raise suspicion because of the write-off being recorded, at least the car is apparently legal, if not necessarily desirable.
The first check to make is that the numbers on the registration document are the same as those of the car you’re viewing. Also look for evidence of chassis plates having been swapped (such as loose rivets) and look for signs of a recent respray. Also make sure you’re looking at the car at the same address as the one shown on the registration document.
Organised gangs are usually behind ringing operations; once you’ve bought a ringer the seller will disappear without trace. If you are unlucky enough to buy a ringer, don’t sell it on as you could be prosecuted. Tell the police and Trading Standards too if you’ve bought from a dealer.
Cut and shuts
A cut and shut is what you get when the front half of a rear-ended car is welded to the back half of a car that’s suffered serious front-end damage. While the car may look okay at first glance, it’s a rolling death trap because in a crash it’ll just disintegrate.
To make sure you don’t buy a cut and shut, look for signs of a join along the top of the windscreen and under the seats. Also get the car onto some ramps if you can so you can see it from underneath; if it’s a cut and shut it should be obvious. Also look for mismatched trim, while mismatched paint or overspray on the glass and trim are other clues that should make you wary.
False escrow services
An escrow account lets you deposit money with a third party until a transaction has been completed. Theoretically this gives security to you and the seller – but you can’t bank on it.
The giveaway with this scam is often an unusually cheap car. You show an interest then the scammer recommends using a particular escrow service. The vendor will say they’ve used the service before, and that it’s safe. But once you’ve deposited your money, the vendor will disappear, and so will your money.
At the heart of the scam is a fake escrow service which will have a reassuringly professional website. The seller provides a web-based email address and a mobile phone number, which allows them to disappear into the ether, and because the escrow service is fake, you can’t trace the vendor through that.
A legitimate escrow service will be registered with Companies House and its website will contain full contact details including a landline number and email address. Make sure you contact them via both and see what response you get. If you’re still not sure, ask Trading Standards if they’ve had any complaints about this particular escrow service.
Deposit fraud
Be wary about leaving a deposit with a private seller, especially if they put you under pressure because they claim to have another buyer lined up. The chances are that there’s nobody else in the picture and once you’ve handed over your money the seller will simply disappear, taking the car and your cash with them.
The hire car scam
Renting a car and offering it for sale is against the law. But it still happens and people get taken in by it. It’s easy to protect yourself against it though – just make sure that the registration document is to hand and that the registered keeper’s address is where you’re viewing the car.
Richard Dredge
June 2015