It's challenging to envision the daily life of an average American without the presence of a car. A vehicle is essential for commuting to work or college and for embarking on vacations. However, cars come with a hefty price tag, and there are instances where one may find themselves short on funds when it comes to purchasing a new car from a dealership. Consequently, in the quest for a more budget-friendly alternative, consumers like yourself often turn to salvage auctions.
On one hand, a salvage auction serves as a treasure trove of affordable cars. If you possess the knowledge to identify an automobile in a satisfactory condition, you stand a good chance of discovering a vehicle that aligns with your requirements. On the flip side, there are numerous unscrupulous sellers who aim to sell you a vehicle that does not meet the specifications they claim.
For example, the National Highway Traffic Safety Administration (NHTSA) records approximately 452,000 cases of odometer fraud in the United States each year. This results in an annual financial loss exceeding $1 billion for American consumers, not including unreported instances.
As a buyer of salvage cars, you need not fall prey to fraudulent practices if you are aware of how to spot them. In this article, we will share some valuable tips to safeguard your money.
Can the law offer protection?
Undoubtedly, there are laws in place to address fraudulent activities related to odometers. According to federal regulations, a seller is obligated to provide a written statement confirming the accurate mileage of a vehicle. If incorrect information is supplied, it can be considered a violation of the law and thus a criminal offense.
However, there is a legal loophole that some sellers are willing to exploit. They are not required to provide disclosures for vehicles that are up to 10 years old. Consequently, if you purchase such a vehicle and subsequently discover an incorrect mileage reading, you may not be entitled to compensation. This underscores the importance of learning how to detect fraud before it is too late.
How to identify odometer fraud?
In most cases, a vehicle that is 5 years old should typically display a mileage of at least 60,000 miles. Additionally, if you come across an odometer reading of 20,000 miles or less, the vehicle should still have its original tires. When inspecting an odometer, ensure that the numbers are correctly aligned. If you notice that they appear crooked, distorted, or if there are gaps between them, there is a possibility that the odometer has been tampered with. Additionally, assess whether the condition of the pedals corresponds to the claimed mileage.
If you are unable to physically examine a vehicle, we recommend procuring a VIN (Vehicle Identification Number) check. Companies that offer VIN lookup services typically source their information from reputable databases such as the National Motor Vehicle Title Information System (NMVTIS) and the National Vehicle Service. Therefore, you can rely on their data. Compare the results of the history report with the actual mileage and refrain from proceeding with the transaction if there are inconsistencies.
In conclusion
If your goal is to save money, we encourage you to consider purchasing a salvage car from an auction. However, exercising caution and paying attention to details is imperative to secure a favorable deal. Be prepared to invest time in your search for a vehicle to avoid additional expenses on repairs and spare parts. Verify as many details as possible and only finalize a purchase when you are confident that the car meets your requirements.