Understanding the Types of Fraud You May Encounter During the Car Buying Process

For many, purchasing a car is one of the most significant financial decisions they’ll make. Unfortunately, it’s also a prime opportunity for scammers to take advantage. From misleading advertisements to predatory financing schemes, fraud can occur at nearly every stage of the process.

Navigating the car-buying process can be overwhelming, especially when you’re unaware of potential fraud risks. At The Law Office of Hillel Traub, we leverage over 30 years of experience to guide Maryland residents in safeguarding their interests. As a former lawyer for the MVA, and twenty years representing car dealers, Attorney Hillel Traub has unique insight into vehicle-related disputes and fraud, ensuring your rights are protected. Whether you’re dealing with misleading contracts, undisclosed defects, or title issues, our thorough approach may help shield you from financial loss and unnecessary stress.

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Common Types of Car-Buying Fraud

From odometer fraud to predatory financing, these scams can impact your wallet and even your safety. Some common types of fraud during this process include:

Odometer Fraud

Odometer fraud is one of the oldest tricks in the book, yet it continues to deceive buyers today. By tampering with a car’s mileage, dishonest sellers make the vehicle appear less used, often inflating its value in the process.

How to spot it:

Compare the mileage to maintenance records for consistency.
Inspect the car’s wear and tear, such as the pedals and tires, for signs of excessive use.
Check the vehicle history report for any unusual mileage changes.
Always ask for a current CarFax or AutoCheck.

Staying vigilant can save you from overpaying for a vehicle or purchasing one that requires unexpected repairs.

Title Washing

When a car has been salvaged, flooded, or totaled, its title reflects that history—unless it has been altered in a scam known as title washing. This tactic hides the vehicle’s past, making it seem safer and more reliable than it actually is.

How to protect yourself:

Request a vehicle history report from reputable services like Carfax.
Be wary of deals that seem too good to be true, as they often are.
Verify the title’s authenticity through your local DMV.

By uncovering a vehicle’s true history, you can avoid buying a car with hidden damage that could lead to safety risks and unexpected expenses.

Bait-and-Switch Advertising

Few things are as frustrating as seeing an advertised deal only to find it’s unavailable when you visit the dealership. Bait-and-switch advertising lures buyers with low prices, only to pressure them into purchasing more expensive vehicles.

Avoid the trap by:

Insisting on seeing the advertised car. If it’s unavailable, walk away.
Keeping screenshots of online advertisements as evidence.
Researching dealership reviews to ensure they operate ethically.

By standing your ground and staying informed, you can avoid falling for bait-and-switch tactics and find a car that fits your needs and budget.

Undisclosed Vehicle Damage

When sellers fail to disclose previous accidents or flood damage, buyers are left with potentially unsafe vehicles and costly repairs. Undisclosed damage can be challenging to identify but has serious implications for a car’s value and safety. Stay safe with the following tips:

A trusted mechanic should inspect the vehicle before purchase.
Look for physical damage signs, such as mismatched paint or unusual odors.
Use tools like VIN checkers to verify accident history.

Knowing what to look for can save you from buying a car with hidden issues that could compromise your safety and wallet.

Predatory Financing

Some dealerships push high-interest loans or unnecessary add-ons, inflating the cost of your vehicle.

Here’s how you can protect yourself:

Secure financing through a bank or credit union before visiting dealerships.
Carefully review loan terms and ask questions about unclear conditions.
Decline extras like extended warranties unless they provide clear value.
Read the finance document carefully. Make sure the numbers match what you were quoted and agreed on.

By understanding financing options and reviewing terms, you can avoid predatory practices and secure a loan that works for you.

Protect Yourself Against Car-Buying Fraud with The Law Office of Hillel Traub

At The Law Office of Hillel Traub, we understand how devastating car-buying fraud can be for individuals and families. With over 30 years of experience, Attorney Hillel Traub offers the insight and determination needed to help you address cases of fraud, from odometer tampering to predatory financing. As a former MVA lawyer and lawyer for car dealers, Attorney Traub deeply understands vehicle-related issues and fraud, positioning him as a trusted advocate for your rights.

Whether you’re dealing with hidden vehicle damage, title discrepancies, or unethical financing practices, we work tirelessly to protect your interests. Don’t let unscrupulous sellers take advantage of you—call us today at (410) 580-1100 or visit our contact page to get started.