Beware: Used Car Buyer Scams
Find Out What You Need Before Buying A Car
An investigation into the sales taxes paid on used car purchases has uncovered a host of crimes going on in the used car business. From stolen cars, to fake car titles, to identity theft, authorities are seeing a lot of the problems at the tag office. Authorities at the tax office have seen dozens of cases of people trying to get around the taxes owed on the sale of a used car. When investigators took a closer look at the issue, they found more than tax evasion.
Crooks who set themselves up as legitimate car repairmen are taking cars from customers, not performing any work, but telling the customer they owe thousands of dollars. The fake mechanic refuses to release the car and the owner scrambles to find the money. In the mean time the fake mechanic files a mechanics lien on the vehicle without telling the owner. The fake mechanic then sells the car with the lien instead of a title. When the new buyer gets to the tax office to get a title, the fraud is uncovered and the car is confiscated. Authorities also say some car owners keep their titles in the vehicle all the time, and say it’s a bad idea. If a car is stolen and the title is with it, the car can easily be resold with a forged signature. Keep your titles somewhere safe!
Another problem is private auto title services. Officials claim some services are handing out real driver’s license numbers and insurance information to those without either. With someone else’s driver license and insurance information, a used car buyer can get a car title transferred illegally, something else officials are seeing more of.
How can a used car buyer make sure they are not falling into a scam? Before you buy a used car, you need to fill out a specific form, it’s called a form 130-U. It has to be filled out and signed by both parties.
