How to avoid fraud when buying a used car
If you're just starting the process of shopping for a used car, you can turn to dealers' yards or, to avoid the need to travel, their websites. A platform like Otogo brings together tens of thousands of examples that you can filter according to your location and what you're looking for.
Then, of course, there are the usual classified ads. Think Marketplace or Kijiji. It's easy to browse and quick to find models that match your needs. However, since fraudsters are active everywhere, some ads may be too good to be true or contain traps such as phishing.
Be particularly wary of “bogus private individuals”. These individuals, often associated with merchants, generally have no sales permit or street address and often operate under assumed names.
It's not uncommon for vehicles offered by bogus individuals to represent a very bad business opportunity,” comments Charles Tanguay, spokesman for the Office de la protection du consommateur (OPC). They've often been in an accident, even several times, and rebuilt with stolen parts, their odometer is unreliable, even for luxury brands.”
Tips to avoid fraud
First, take the time to find out the fair market value of the vehicle you're interested in. If necessary, refer to the Automobile Protection Association (APA), CAA-Quebec or the Canadian Black Book. If a model is advertised at a much lower price, there's something fishy going on. It may be an attempt at fraud if not major problems that are not being disclosed. That's why it's always a good idea to thoroughly inspect a vehicle in person before you buy.
How to identify a fake private individual? Do an online search using the seller's name. If more than one vehicle appears in the results, or if he doesn't arrange to meet you at his home and wants to sell you in a mall parking lot, beware. The same applies if the vehicle is not registered in the seller's name.
You need to be vigilant when a salesperson refuses to talk to you on the phone and will only communicate by e-mail or text message. The same applies if they pressure you to buy the vehicle without inspecting it in person or allowing a local mechanic to inspect it for you.
A fraudster may ask you to make a partial payment to reserve or ship the vehicle. But be careful! He will then cash your payment and the vehicle will never arrive.
It's always a good practice to have the vehicle's history drawn up by the Société de l'assurance automobile du Québec (SAAQ) or a private service such as Carfax, with the vehicle identification number (VIN) in hand. Then check that the vehicle is debt-free with the Registre des droits personnels et réels immobiliers (RDPRM).
In the case of a dealer, you can consult the OPC's Find out about a dealer tool to find out whether he has the road vehicle dealer's permit to sell cars, whether he has already been put on notice by other consumers, or whether the OPC has had to intervene with him.
Happy shopping and beware!
