How to Spot and Avoid Common Car Buying Scams

When buying a car, it is crucial to be aware of various scams that can jeopardize your purchase. In this article, we will explore three common scams that individuals should be wary of: curbstoning, phantom car sales, and title washing. Additionally, I will share a personal anecdote to illustrate one instance of such a scam from my late teenage years.

Understanding Common Car Buying Scams

Curbstoning: This involves unlicensed dealers posing as private sellers. They often buy cars at auctions or from private sellers, then resell them at a higher price without disclosing their dealer status. Curbstoners may misrepresent the vehicle's condition or history, making it crucial for buyers to verify the seller's legitimacy and the vehicle's background.

Phantom Car Sales: In this scam, a seller advertises a car that doesn’t exist or is not for sale. They may create a convincing online listing with photos and a low price to attract buyers. Once interest is generated, they may ask for a deposit or personal information only to disappear once they have it. Buyers should always verify the physical existence of the vehicle before proceeding with any payments.

Title Washing: This occurs when a vehicle's title is altered or tampered with to conceal its history of accidents, repairs, or liens. This can significantly impact the car's value and safety. Buyers should obtain a Vehicle History Report (VHR) before purchasing to ensure the vehicle has a clean history.

A Personal Scam Experience

Back in my late teens/early twenties, there was a used car dealer in my small town who was well-known to be the living embodiment of all the bad stories you’ve heard. Whenever he saw a young adult or a lady driving into the lot, he went into overdrive with his sales pitch. By the mid-1980s, I was already a gearhead, with my first street racer well before I could legally drive it, and my first bike frame-up for my 15th birthday.

It was time for a decent running car, so I decided to check out his lot. He pitched fast cars and powerful 4x4 trucks, but one particular car caught my eye: a 1976 Ford four-door with a V8 engine and good-looking interior. He was asking 2000, which was a lot back then for a used car. After telling him I had 400 to put down and could pay by the week, he acted like I was wasting his time, saying he wasn't going to give a loan to a 16-year-old kid.

I told him I would see if I could get the rest and return the next day. Mind you, we never even cranked the car or test drove it. That night, I stayed with a friend and arranged for his father to pose as my father the next day. All he needed to do was act like I was new at this and bring up driving the car before we paid for it.

Next morning, I was there bright and early with my friend’s father. I told the dealer my dad had the rest but wanted to look over the car and paperwork first. While they were in the office, I quietly opened the hood, popped the distributor cap off, and ran a thick line of graphite around the contacts with a pencil. I put it all back together and closed the hood before they came out.

When they came out, my friend’s father asked if I liked the way it drove. I told him I didn’t drive it. He huffed, saying, "You always drive a car before you buy it." The dealer laughed at my “stupidity” and handed my friend's father the keys. He got in and tried to start the car, but it wouldn’t turn over. He said, "Boy! That's why you drive it first! I’m not giving you money for this hunk of junk!"

I shrugged and said sorry while whispering to the dealer, "I really like this car though. I’ll still give you 400 for it, dad doesn’t need to know." He said I could bring the 400 cash and a tow truck, and it would be my problem from there. So, I went to the bank, got the cash, and we used my friend's father’s truck to tow the car to his house. There, I replaced the distributor cap with a damaged one and drove it for about 10 years.

As always, I did not mention any names to protect the innocent and the guilty. Such experiences highlight the importance of being vigilant and cautious when purchasing a car.

Conclusion

By understanding these common car buying scams – curbstoning, phantom car sales, and title washing – and avoiding the pitfalls, you can make informed and safer decisions. Always verify the seller's legitimacy and the vehicle's history before making a purchase. Your due diligence can prevent falling victim to these scams and ensure a smooth and trustworthy car buying process.