Vehicle history reporting scams and how to avoid them

A vehicle history report can give you a generally accurate look into your car’s past – how it’s been maintained, records of accidents it’s been in and the like. But mistakes can happen, and what’s more, there are scams associated with these reports that target consumers buying or selling used cars.

Vehicle history report scams are not common when you buy a report from a major source, such as Carfax or AutoCheck, or receive a report from a reputable car franchise or dealer. If you are buying a car from a private party seller or sell a car yourself, you could potentially be a victim of such schemes. Here are a few different types of vehicle history report scams and how to avoid falling for them.

A vehicle history report from a trusted provider such as Carfax or AutoCheck usually contains accurate and up-to-date information regarding a car’s accident record. But there are times when important information is left out, either by accident or on purpose.

“A history report might not catch something because of the way they collect information,” says Brian Moody, executive editor of Autotrader. “If someone destroys a car without insurance or no insurance claim is made and there is no police report, this damage, repaired or not, will not appear on a history report.”

In such cases, or in the case of unreported minor accidents, an owner may deliberately withhold information to avoid higher insurance rates or to have a better chance of selling a car.

Moody adds that if you go through a private party dealer, it’s also important to be aware that they may give you an older history report that was saved before damage was done to a vehicle.

If done purposefully, withholding details from a report is considered a scam. This limits the information you have about a car and can lead to you buying a damaged car for more than it is worth.

How to avoid this scam: It’s important to make sure you’re looking at the most recent version of a history report purchased or supplied from a reputable source, especially if you’re buying a used car from an independent seller.

And even after reading a report, it’s not enough to make a car buying decision based on the vehicle history report alone. Make sure that the car in question by a reliable and trustworthy mechanic. Pre-purchase inspections – also known as used car inspections – typically includes test drives and can cost anywhere between $100 and $200, which can save you money in the long run.

In addition to deliberately omitting certain details, information can be changed or even removed from a vehicle history report, according to Patrick Olsen, executive editor of Carfax.

“We have private party sellers and dealers who have glimpsed through the night who will use a substitute for the Carfax report or try to change a Carfax report by cutting and pasting information,” he says.

This is more common when you are not buying a car from a well-known franchise or large independent car dealer.

How to avoid this scam: If you are buying from a private party seller, make sure you are viewing an actual report and not a substitute from an alternative source. Vehicle history reports from viable providers will have in-depth information about a car—such as its serious accident record, maintenance records, mileage, recall information, and more—that a modified report might not.

And if you’re buying a car from a dealer, look out for red flags that may indicate the dealer is untrustworthy. For example, most dealers provide free vehicle history reports through subscriptions with reputable services. Dealers who refuse to show you a report or offer an outdated one are usually not to be trusted.

It is common for buyers to ask for vehicle history reports when purchasing a car. And as a seller, a request for one is normal and typically usual. But there are cases when a request from a potential buyer is linked to a specific scam, one that involves websites designed to steal your information.

In such cases, a potential buyer may contact a seller and ask them to purchase a vehicle history report from a specific and unknown website. Once a buyer is on the site, they may be asked to enter personal information and a vehicle identification number, or VIN, and pay $20 for a report. After that, the seller will not hear back from the buyer nor will they get a report.

In some cases, all the seller can incur is a $20 loss. But if you enter your personal information or the website captures other details such as your address or payment card information, it can lead to a more serious problem, such as identity theft.

How to avoid this scam: It is important to buy reports only from legitimate sites. To make sure you get one from a reputable source, you can go to the National Motor Vehicle Title Information System website, vehiclehistory.gov, which lists approved providers of vehicle history reports. Note that not all vehicle history reports will be available on the website and that there is information, such as accident history, that is not included in reports offered by some providers.

Keep these key points in mind when buying or selling a used car: