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Car Buying Scams
— and How to Beat Them

Dealers and private sellers know things you don't. Here's what to watch for, explained in plain English — no legal jargon, no fluff.

⚠️ Quick rule of thumb: If a deal feels rushed, confusing, or "too good to be true" — it probably is. This guide will show you exactly what to look for before signing anything.
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Vehicle History & Condition Tricks
Hiding what's really wrong with the car
Odometer RollbackHigh Risk

The seller tampers with the mileage display to make a high-mileage car look nearly new. This is one of the oldest tricks in the book — and it's illegal. The NHTSA estimates it happens about 450,000 times per year in the US.

Check the CarFax or AutoCheck report. If the mileage history shows adropbetween reports, walk away immediately.
Title WashingHigh Risk

A car that was in a flood or declared a total loss gets re-registered in a different state that doesn't carry the "salvage" brand on the title. It can look perfectly clean on paper.

Run the VIN on NMVTIS (vehiclehistory.gov) in addition to a standard history report — it checks title records across all 50 states.
Undisclosed DamageCommon

Sellers aren't always legally required to volunteer information about past accidents, especially in private sales. Fresh paint and clean surfaces can hide serious structural damage.

Always pay for a pre-purchase inspection by an independent mechanic (typically $100–$150). Ask them to check specifically for repainted panels and frame damage.
VIN CloningHigh Risk

A stolen car gets the VIN numbers from a legitimate similar vehicle, so it appears clean in every database. You could buy a stolen car without knowing it.

Check that the VIN plate on the dashboard, the door jamb sticker, and the engine block all match. A mismatched or worn-looking VIN plate is a red flag.
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Pricing & Payment Scams
Making you pay more than you should
Bait-and-Switch AdvertisingCommon

A dealership advertises a car at a great price online. You show up and that car is "just sold" or "unavailable." Now you're at the lot, emotionally ready to buy, and they pivot you to something pricier.

Call ahead to confirm the specific car (with its stock number) is still available. Get it in writing via email before you drive over.
Payment PackingHigh Risk

Instead of talking about the total price, the dealer focuses on the monthly payment. They quietly slip in extras (extended warranties, paint protection, tire insurance) and raise the payment by just $20 or $30 — hoping you won't notice.

Always negotiate theout-the-door pricefirst, before you discuss monthly payments. Ask for an itemized breakdown of every charge.
Deposit FraudHigh Risk

Common in online sales. The "seller" takes your deposit for a car that doesn't exist — or that's already sold — and disappears with your money.

Never pay a deposit via wire transfer, Zelle, Venmo, or gift cards. These are nearly impossible to recover. Use a credit card or check if a deposit is truly required.
Gift Card Payment DemandsHigh Risk

A seller insists you pay fees, deposits, or even the full price using iTunes, Amazon, or Google Play gift cards. Legitimate sellers never do this — ever.

This is a scam. Full stop. No real seller or dealer accepts gift cards as payment for a vehicle.
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Financing Tricks
The fine print can cost you thousands
Yo-Yo FinancingHigh Risk

You drive off the lot thinking the deal is done. A week or two later, the dealer calls to say the financing "fell through" and you need to come back and sign new paperwork — at a higher interest rate. You're already attached to the car, so you feel trapped.

Do not take delivery of a car until financing is 100% finalized in writing. Consider getting pre-approved through your own bank or credit union first.
Forced Add-OnsCommon

The finance manager tells you that GAP insurance, paint sealant, or a protection package is "required" to get the loan. It's almost never true — these are pure profit items for the dealer.

Say firmly: "I'm not interested in any add-ons." If they say it's required, ask them to show you that in writing from the lender. They usually can't.
Hidden Fees in Fine PrintCommon

Charges like "dealer prep fees," "documentation fees," or vague "market adjustments" can add $500–$2,500+ to your purchase. Some are legitimate; many are padded.

Always ask for the full out-the-door price before visiting the dealership. Review every line item in the contract and ask what each fee covers before signing.

💡 The single best financing move you can make

  • Get pre-approved for a car loan at your bank or credit union before you visit any dealership. This gives you a rate to compare against, and removes the dealer's leverage over you in the finance office.
  • The FTC's CARS Rule (effective 2024) requires dealers to disclose all fees upfront and bans hidden charges. If a dealer refuses to itemize costs, you have the right to walk away — and possibly file a complaint with the FTC at ftc.gov/complaint.
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Private Seller & Online Scams
The wild west of Facebook Marketplace and Craigslist
Fake ListingsHigh Risk

The listing uses stock photos or stolen images from a real listing elsewhere. There's no actual car — just someone collecting deposits or personal info from interested buyers.

Do a reverse image search on all photos (right-click → "Search image" in Chrome). If the same photos appear in other listings, it's fake.
Too-Good-To-Be-True PricingHigh Risk

A desirable car is listed thousands below market value, often with a story: "I need to sell fast," "I'm moving overseas," or "it's my late father's car." The urgency is engineered to make you skip due diligence.

Check the car's value on KBB.com or Edmunds. If the price is more than 15–20% below market with no obvious reason, treat it as a scam until proven otherwise.
CurbstoningHigh Risk

An unlicensed dealer buys damaged, high-mileage, or problem cars at auction and flips them posing as a private seller. Private sellers have fewer legal obligations than dealers, so buyers have less protection.

Ask to see the title. If the name on the title doesn't match the seller, or the title is brand new and just transferred, be suspicious. A "private seller" with multiple cars for sale is almost certainly a curbstoner.
Fake Escrow ServicesHigh Risk

For high-value online sales, the scammer insists on using a specific "escrow service" to make the transaction seem safe. The service is fake, and your payment vanishes.

Only use well-known, independently verified escrow services. Never use one the seller specifically recommends — look it up yourself. Better yet, meet in person.

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Your Legal Protections
What the law actually does for you

⚖️ FTC CARS Rule (2024)

Dealers must show you the total price upfront, can't charge for add-ons you didn't agree to, and must give you all the numbers before you sign. Report violations at ftc.gov/complaint.

🍋 State Lemon Laws

If a new (or certified pre-owned) car has a serious defect that can't be fixed after a reasonable number of attempts, you may be entitled to a replacement or refund. Check your state's specific rules.

📄 Required Disclosures

Dealers are legally required to give you a Buyers Guide on used cars showing warranty status. You have the right to ask for repair histories and to have the title reviewed before purchase.

🔎 Federal Odometer Law

Tampering with an odometer is a federal crime with fines up to $10,000 per violation. If you discover rollback after purchase, report it to NHTSA at nhtsa.gov.

Before You Sign: Your Checklist
Do every one of these. Every time.
  • Run the VIN through both CarFax/AutoCheck and vehiclehistory.gov (NMVTIS). One report can miss things the other catches.
  • Get a pre-purchase inspection from an independent mechanic — not one recommended by the seller. Budget $100–$150. It's always worth it.
  • Get pre-approved financing from your bank or credit union before stepping foot in a dealership.
  • Negotiate the out-the-door price, not the monthly payment. Only talk payments after you've locked in the final price.
  • Read every line of the contract before signing. Ask what every fee is for. Don't let anyone rush you.
  • Never pay with gift cards, wire transfers, or cryptocurrency — these are irreversible and scammer-preferred.
  • Verify private sellers by confirming the name on the title matches their ID. Meet at a bank or police station parking lot for large cash transactions.

Knowledge is your best negotiating tool.

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