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Spring Car Shopping? Beware of These Costly Scams Targeting Canadian Buyers

How Canadians can protect themselves and avoid scams

LONDON, Ontario--(BUSINESS WIRE)--Mar. 18, 2026-- As Canadians prepare for another busy car buying season, used car scams such as re-vinning and odometer rollbacks pose serious risks for Canadians nationwide. CARFAX Canada analyzes billions of data records across North America, helping Canadians take extra precautions before buying a used vehicle to avoid costly surprises.

“Criminals can be extremely sophisticated and while most car sellers are honest, fraud can still happen. Even one overlooked detail could lead to major financial and legal consequences,” said Shawn Vording, President at CARFAX Canada.

The Most Common Used Car Scams in Canada

To help Canadians stay vigilant, CARFAX Canada has identified the most common used car scams to watch for:

VIN Cloning or Re-Vinning

VIN cloning or re-vinning is a form of auto fraud where a vehicle’s VIN is illegally copied or “cloned” onto another vehicle to cover its identity. In many cases, cloned VINs are used to conceal and re-sell a stolen vehicle, and if you buy one, it could be seized by authorities.

Odometer Tampering (Rollback)

Odometer rollback – where a vehicle’s mileage is illegally reduced to inflate its value – is a serious and growing concern for car buyers in Canada’s used car market.

Last year, CARFAX Canada detected 20,642 vehicles with potentially rolled back odometers, flagged through Vehicle History Reports run in 2025. Every year, CARFAX Canada generates millions of Vehicle History Reports, helping Canadians avoid fraudulent purchases.

CARFAX Canada customers have shared how Vehicle History Reports helped them avoid costly mistakes. Kenny said: “We almost purchased a used vehicle and had even negotiated a price. We decided to give it one more check and discovered the vehicle had an odometer rollback issue. Without the report we would never have known, and it saved us a lot of headaches and money!”

Beware of Undisclosed History

Beyond odometer fraud and VIN cloning, buyers should also be aware of several other types of undisclosed vehicle history that can lead to serious problems:

Hidden Accidents or Damage

A vehicle's accident or damage history does not necessarily disqualify it from purchase. The critical factor is knowing about any previous damage so buyers can confirm it has been repaired properly. Undisclosed damage can pose significant safety risks and lead to costly repairs, reduced resale value, insurance issues, and mechanical failures.

Undisclosed Salvage and Rebuilt Branding or Title Washing:

Purchasing a salvage or rebuilt vehicle can offer significant discounts to car buyers but it can mean big problems in the future.

  • A rebuilt vehicle was previously declared total loss by insurance and was repaired, inspected and deemed roadworthy.
  • A salvage or “totaled” vehicle cannot be driven or registered for road use in Canada – it’s unsafe and illegal to drive – until all necessary repairs pass structural safety inspection.
  • A vehicle can be branded as Non-Repairable if an inspection determines the vehicle cannot be repaired as required.

Criminals may move salvaged vehicles across the country to hide their history and re-sell them with fake documentation or a clean title – this is known as title washing. Unknowingly buying a rebuilt or salvage vehicle may seem a good deal but quickly turn into long-term financial, legal and insurance headaches.

  • How Canadians can help protect themselves: Get a CARFAX Canada Vehicle History Report and pay special attention to the Registration section which will tell you if it’s been branded as: Inspection Required, Normal, Non-repairable, Rebuilt, Salvage or Stolen.
  • Learn more about branding and title washing.

Undisclosed Liens

In the past year, CARFAX Canada found 40% of vehicles1 checked had outstanding debt. While liens are common, buyers may become responsible for the debt if purchasing a vehicle with a lien without knowing.

If a lien is not paid off before transferring ownership, the lender can repossess the vehicle, leaving the buyer on the hook for paying off the money owing on the vehicle.

How to Stay Ahead of Scams

CARFAX Canada recommends the following tips to help avoid used car scams:

  1. Beware of unlicensed individuals (curbsiders) who sell cars illegally and might misrepresent the real condition of the car, turn back the odometer or hide major issues.
  2. Educate yourself on what to look out for when buying a used car from a private seller or finding deals online and always confirm the seller’s identity.
  3. If the deal seems too good to be true, do your research and trust your gut.
  4. Always get a licensed mechanic to inspect the vehicle and take it for a proper test drive.
  5. Do not leave a deposit or pay in full for the vehicle using suspicious links or apps.
  6. Always check with CARFAX Canada for the most comprehensive vehicle history to help you make a confident decision.
  7. Learn more on how to avoid used car scams

CARFAX Canada searches billions of data records across North America and provides comprehensive vehicle history, market insights and vehicle valuation data to help millions of people make decisions about cars.

 

 

1 Based on data from CARFAX Canada reports run from September 30th, 2024, to October 1st, 2025.

About CARFAX Canada

CARFAX Canada, a part of S&P Global (NYSE: SPGI), is Canada’s definitive source of automotive information, delivering vehicle history, valuation and service solutions. Drawing on billions of data records from thousands of sources, its products enable used vehicle buyers, sellers and vehicle service providers to make informed decisions. CARFAX Canada is dedicated to transparency and is trusted to provide vehicle history, valuation and service information to dealerships, vehicle manufacturers, consumers, service shops, major auctions, governments, insurance providers and police agencies.

Connect with CARFAX Canada on Instagram, Facebook and LinkedIn.

Media Contact
Claudia Jaimes
Manager, Public Relations and Social Media
CARFAX Canada
cjaimes@carfax.ca
+1.519.709.4941

Source: CARFAX Canada