Purchasing
advice
We have
been in the automotive business for a long time and we have seen many scams.
For the safety and convenience of our valued customers, we have listed some of
the more popular scams and things to BEWARE of. When you’re shopping for a
vehicle from a private individual have you ever encountered any of the
following (click on the link below to view the full
description):
1.
Illegal auto dealers –
Curbers/Curbstoners/Gypsies
2.
Vehicle history reports
3.
Mileage exempt vehicles
4.
Salvaged titles
5.
Hidden liens
6.
They are selling the vehicle
for someone else
7.
Lost Title
1.
Illegal Auto Dealers
“Curbstoners” –
This is the individual who has no license, no bond and no insurance to be in
the automotive business. Here is what to look for:
When you
call on an advertisement ask if their “CAR” is still for sale – if they say
“which car” it is probably a sign that they are a dealer, which is okay if they
are honest and tell you that. Most “Curbstoners” will lie to you and say that
they are selling the car for their sister, their uncle, their neighbor, etc.
The odds are 9 out of 10 times they are buying and selling cars illegally.
The
reason they lie to you is because they know what they are doing is illegal and
could land them in jail. Yes, it is a criminal offense to buy and sell more
than 5 cars per year without a license in the state of Texas. Most of these
individuals are trying to sell in excess of 100 per year!
They also
lie because they are doing what is called “jumping titles”. If they
sell you the car and you question them why the title is not in their name they
simply tell you “remember, I said I was selling it for my sister and brother
in-law. That is my sisters married name and that’s why it does not match my
name”.
By the
way “jumping titles” is also very illegal and dangerous to you as the consumer.
What if there is a “hidden lien” on the title? What if the title the
individual gave you is not the “current title” (there could be a
duplicate out there)? When you purchase a vehicle from an individual make sure
the name on the title matches the name of the person selling it to you! A
LICENSED, BONDED AND INSURED AUTO DEALER HAS TO LEGALLY GUARANTEE YOU
A LIEN FREE AND CLEAR TITLE!
HERE IS
AN ARTICLE THAT I JUST RECEIVED FROM THE TEXAS INDEPENDANT AUTO DEALERS
ASSOCIATION.
Top
Curbstoners Run Out of Az by the OIG
In a joint effort with Federal
authorities, Tom Brice of the Office of the Inspector General (OIG) was able to
stop 35 of the top curbstoning offenders this month.
Our
frustration with the ever increasing curbstoner issue has worsened as economic
& inventory issues increase. What a breath of fresh air when I heard of the
Curbstoner case; and it gets even BETTER when you know the details.
35 top
volume Curbers shut off!!
Just 1 of the 35 dealers @ 1 auction purchased 1.4 MIL within the 14 months
investigated; and of those vehicles, the vast majority were curbed.
But wait,
there’s more: of the vehicle list of all of the top offenders, 50% also had
ODOMETER ROLLBACKS that averaged 90,000 miles per vehicle.
Tom Brice
said in an interview regarding the case,
“We acted on this case, not only for criminal enforcement; we also know that
Arizona Dealers are unfairly having to compete with these curbers, who have
less overhead & business liability.”
AIADA
would like to thank Tom Brice and the Office of the Inspector General for their
diligence and hard work.
Return to the Top of the Page
2.
Vehicle History Report
Make sure
you run a “Vehicle History Report” on the vehicle you are interested in
purchasing. This report is “mostly” accurate. It will tell you most all title
histories. It will not tell you all accident history. An
accident is only reported when there is a police report generated. In other
words, if a vehicle was damaged, no matter how bad it was, (insurance companies
DO NOT report to these companies) and there was never a police report it will
not tell you.
A common
practice with shady “curbstoners” is getting a vehicle history report from
another vehicle and placing it in their vehicle. We get calls all the
time asking for VIN numbers so they can “run a vehicle history report”; but,
what are they really doing with it? Make sure you check the VIN number on
the report with the one that is actually on the vehicle you are looking at!
Use your
common sense when looking at a previously owned vehicle or have it inspected by
a business that is certified.
These
reports will also tell you if the person selling the car is being honest.
However, DO NOT rely just on the vehicle history report to
make your decision on the purchase. There are many cars out there that have had
an “oops” or two and are still great cars. Just use that warm fuzzy feeling!
Here are two places to go to run a “Vehicle History Report”.
1. www.autocheck.com ($99.95 for unlimited reports for 21
days) – Best value and seems most accurate. We use and suggest this site!
2. www.carfax.com ($99.99 for 6 reports) – Most
advertised but more expensive.
Return to the Top of the Page
3.
Mileage Exempt Titles
In the
state of Texas once a vehicle is over 10 years old, the mileage becomes exempt
on the title. If you purchase a vehicle and the word EXEMPT appears in
the top right hand corner of the title, you know that the vehicle in question
has been bought/sold at least once. Buying an “exempt” vehicle can be very
“tricky”. How do you really know what the “true” mileage is? There
are some things that will help:
1.
Look at the brake pedal pad. Does it show more wear than what
is “common” for a vehicle with the miles advertised?
2.
Look at the driver’s seat. Does it show more wear than what
is “common” for a vehicle with the miles advertised?
3.
Most Vehicle History Reports will give you a mileage reading EVERYTIME the car
is inspected yearly.
Remember,
a licensed bonded dealer is required by law to disclose ANY mileage
discrepancies to you!!!!
Remember
there is more to buying a car than just the price – Most great deals that seem
too good to be true, usually are!
Return to the Top of the Page
4. Salvaged
Titles
Here is
the one that we know you have all run into – more than once I’m sure: “SALVAGED
TITLES”
Where do
we start with this one?
A
salvaged title is a vehicle that has been involved in a serious accident and
the insurance company believes that it would be cheaper to “total” the vehicle,
than to repair it to meet industry standards. When someone advertises the car
has a salvaged/reconditioned title and tell you it was the bumper, fender and
it was minor…. THEY ARE NOT BEING TRUTHFUL! 99% of the
time it was a MAJOR accident!
Here is
how the process works:
Once a
vehicle has been in an accident, an adjuster from the insurance company goes
over the vehicle. After this occurs usually two things happen:
1. The
vehicle is given back to the insurance company and then sold at a “salvaged
auction”. Only people licensed to buy/sell salvaged titled vehicles can
buy from these auctions. The car is then either parted out or fixed.
2. The
vehicle is given back to the “owner” and a check is given to the insured, less
the amount agreed upon for letting the insured keep the vehicle”
For
example, a settlement of $7,000 would be given to the insured driver if they
“give” the car to the insurance company, or they get $5000 and get to keep the
vehicle, either way the vehicle is now considered “salvaged”
3.
A salvaged or reconditioned title mean the same thing. The title will be
branded in the top right hand corner for those titled in the state of Texas
Reasons
to NOT buy a salvaged titled vehicle:
1.
How do you know it was put back together properly. Were CAPA/OEM parts
used? Were the air bags deployed, and if so are you sure they will work again?
Do they have receipts for the work done? Do they have pictures of the damage?
2.
99% of ALL banks will not loan on a salvaged titled vehicle.
3. Almost
ALL insurance companies will not give full coverage on a
salvaged titled vehicle, and many will not insure it at all or your rates will
be higher.
4. The
resale value of your car diminishes greatly. A “rule of thumb” when
buying a salvaged titled vehicle is to look at KBB or NADA and look at the
“FAIR” condition price then subtract 25% from that value.
Return to the Top of the Page
5. Hidden
Liens on Titles
When you
go to look at a car from a private seller you do not know what their financial
situation is. What if they are selling a car because they need money to
pay bills? What if they are getting ready to lose their house to
foreclosure? You have to keep in mind that people who are in a desperate
situation may have judgments against them and any property they own may have a
“lien” against it – meaning the car you just bought (that you thought you got a
great deal on) may have a hidden lien on it and YOU will now
have to pay the lien in order to get a clear title. What are you going to
do? Sue them for what it cost you to get a clear title? People in
this situation will just tell you to stand in line with all the other people
they owe money to! BE CAREFUL OUT THERE!
In
today’s “economic” times, many creditors have gone to great lengths to collect
their money. A common practice is to place a lien on any vehicle owned by
the person who owes them money. This lien will not show on the title; but
when you go to transfer the title into your name, it will show up and have to
be paid in order to complete the transfer.
Return to the Top of the Page
6. They
are selling the vehicle for someone else
The first
thing you should ask for when buying a vehicle from a “private party” is
identification and the title! If someone tells you they are selling the
vehicle for their mother, sister, brother or whoever, most of the time they are
not being truthful. If, on the rare occasion, it is the case, I would get
the telephone number and address of the person listed ON THE TITLE,
just in case there are any problems transferring the title! I would call them
before giving ANY money for the vehicle.
Remember
in the state of Texas two or three things are needed to transfer a title:
1.
The
actual title, which needs to have the buyers and SELLERS signature on it
2.
A 130U
form, which also needs to have the buyers and SELLERS signature on it.
3.
If a car
has a lien on it, a notarized lien release from the creditor who placed the
lien.
Return to the Top of the Page
7. Lost Title
It takes
$2.00 to get a certified copy of a title by mail. Use logic and sense when
trying to buy a car. The other scam running is someone will get a title loan on
their car and then sell the car. You get stuck with a car you cannot transfer
the title on nor insure without paying off their loan.
Check
with the local police department before buying one of these cars. Have them run
the vin to see if it is stolen. You can also call the local tax office to see
if there are liens on the car.
Return to the Top of the Page
