Odometer Rollbacks: A Common Scam Impacting Thousands of Canadians
Last year,
Odometer tampering, also known as an odometer rollback, occurs when a vehicle's mileage reading is illegally reduced to inflate its value. It is a serious and ongoing concern for buyers in
"A rolled back odometer can leave buyers paying more than a vehicle is truly worth, mask the normal wear and tear that occurs with higher mileage vehicles, and ultimately hide important information about a vehicle's true condition," said
"Odometer tampering is a growing concern, and one we're encountering more frequently in our investigations, particularly those involving illegal, unregistered sellers," said
Canadians can help protect themselves when buying a used car by reviewing the pattern of odometer readings in a CARFAX Canada Vehicle History Report (VHR), along with an inspection by a licensed mechanic to help identify signs of tampering and confirm that the vehicle's wear and tear aligns with the reported mileage.
How to Stay Ahead of Scams
- Consider buying from a dealer registered with OMVIC or a consumer protection agency in your province as they must follow legal and ethical practices. Use OMVIC's dealer search tool to confirm the seller is registered.
- Beware of illegal, unregistered individuals (curbsiders) who sell cars illegally and might misrepresent the real condition of the car, turn back the odometer or hide major issues.
- Be cautious if the transaction makes you feel uneasy: Illegal sellers and scammers often use high-pressure tactics to rush decisions.
- If buying privately, take extra precautions to verify the owner of the vehicle: Ensure that the seller's identity matches the vehicle's registration documents.
- If the deal seems too good to be true, do your research and trust your gut.
- If possible, bring a friend or family member; they may notice something you don't.
- Inspect the vehicle in person, always get a licensed mechanic to inspect the vehicle, and take it for a proper test drive.
- Do not leave a deposit or pay in full for the vehicle using suspicious links or apps.
- Check all paperwork and obtain a CARFAX Canada Vehicle History Report and VIN Fraud Check. This helps verify that the vehicle's history matches with what the seller advertises.
- When in doubt, walk away.
Beware of Other Common Used Car Scams in
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, leaving consumers to bear the full financial burden and other potential adverse consequences.
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:
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 quickly turn into long-term financial, legal and insurance headaches.
Undisclosed Liens
In the past year, CARFAX Canada found that 40% of lien checks conducted through its platform had revealed outstanding debt attached to the vehicle. 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.
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