It’s a scam that is easy to spot when you know what to look for.

A popular scam that has victimized thousands of used-car sellers is one in which the proposed buyer usually claims to be from Africa, or another country, and is eager to buy the advertised car, sight unseen, for the full asking price – no haggling. After some complicated email exchanges with the “buyer,” the victim ends up with a worthless cashiers check or money order, a depleted bank account, and is still stuck with the car.

How it works:  You are contacted by an interested buyer who wants your car and is willing to pay your price, without seeing the car. He tells you that he lives/works in Africa (or other foreign location) and that he will arrange to have the car picked up by his “agent” and shipped to him.

You receive the cashier’s check but the amount is more than the agreed-on price of the car. The reason that the check is in excess of your asking price is typically explained as a “mistake,” or that the check had already been cut before setting a price, or that the “extra” money is for “shipping expenses,” or any one of a number of other explanations — all of which are false.

You deposit the perfectly official-looking check at your bank. The bank credits your account for the amount of the check, although the check has not actually cleared yet, and won’t be for at least 10 business days or more — which your “buyer” knows. The “buyer” contacts you again and reminds you that he sent you too much money, and reminds you to send him or his agent a money order or cashier’s check for the excess amount, which might be a few hundred or a few thousand dollars.

After you have already sent part of the money, the “buyer” may contact you again and may inform you that he (or his client) has changed his mind about purchasing your car, and asks you to send him the rest of the money.

Your bank calls you a few days later and informs you that the cashier’s check from the buyer is counterfeit and is totally worthless. They debit your account for the full amount of the check.

The bank has no sympathy for you and offers no help. The “buyer” (scammer) was using a bogus name and can’t be located. There is no one to sue or prosecute. These are professional criminals who know how to disappear and pop up again somewhere else. Law enforcement agencies are helpless to act.

If you are selling a used car and a buyer from a foreign country claims to want your car, sight unseen, for your full asking price, with some complicated scheme for payment that involves you sending money to someone else, then the chances of this being a scam are about 99.9%.

Before you commit your business to a shop, check the local Better Business Bureau and government consumer-affairs offices for complaints against it. Better safe than sorry!

1. That minor fender bender will be a major expense.
A survey of repair shops in the Washington, D.C., area by Consumers’ Checkbook, a consumer-information group, shows that replacing a fender on a 1998 Buick LeSabre can cost as much as $982. A new front bumper on a 2006 Mercedes-Benz E-Class can go as high as $1,350.

2. Approved shops are beholden to tight-fisted insurers. Auto insurers contract with providers to repair vehicles for a prenegotiated rate.  Some practices, such as requiring low hourly rates and making the shop pick up the rental-car tab if a repair takes too long, could tempt shops to cut corners.

 3. Not all replacement parts are created equal. Original-equipment manufacturer (OEM) parts are designed to match precisely and may be safer. But insurers prefer that shops use generic or salvage replacement parts because they’re cheaper. If you cause an accident, you could be bound by wording in your policy to use aftermarket parts.

4. The due date is most likely fiction. Mechanics routinely blame missed deadlines on delays in parts delivery. But the truth is that many of them take on more business than they can handle.

5. A rented car will cost you. Renting a car for three weeks could cost $1,000 or more. Even if you have optional rental-car insurance (which costs $1 or $2 a month), your daily reimbursement may be limited to the cost of a compact car.

6. Your car needs a shop that speaks its language. Shops should be certified by the manufacturer to do the work, meaning that they have specialized training and equipment — and charge higher rates. Insurers won’t necessarily recommend these shops, but they should be willing to pay the tab.

7. The insurer’s warranty isn’t all it’s cracked up to be. Insurers sometimes dangle warranties on the parts (for as long as you own the vehicle) to entice you to go to shops in their network. But the body shop’s guarantee is the one that’s important. Nearly all shops will guarantee their work, and parts makers guarantee their parts, making the insurance warranty all but worthless.

Buyers of second-hand cars have to follow two pointers to ensure that they do not purchase carnapped vehicles. The buyers should know the original duplicate invoice and the original owner of the vehicle they are buying.

The original duplicate invoice is an official document given by the dealer, who sold the brand new car, to the original owner. The original duplicate invoice contains all information including the name of the selling dealer, name of the original owner, owner’s address, serial and engine numbers and the original amount the first owner paid to buy the vehicle.

Going through the process of obtaining the original duplicate invoice and knowing the original owner maybe tedious but these are two ways which second-hand buyers can do to protect their interest.

The 1995 Honda Civic has been the most stolen vehicle the last two years. The National Insurance Crime Bureau (NICB) released its Hot Wheels 2008 auto theft report for vehicles on Wednesday, identifying the 1995 Honda Civic as No. 1.

In 2006 and 2007, individually, the 1995 Honda Civic has topped the list each year, followed by the 1991 Honda Accord, 1989 Toyota Camry and the 1997 Ford F-150 Series Pickup. All four car models have been in exact order the last two years. For 2007, the remaining cars on the list are the 1994 Chevrolet C/K 1500 Pickup, 1994 Acura Integra, 2004 Dodge Ram Pickup, 1994 Nissan Sentra, 1988 Toyota Pickup and 2007 Toyota Corolla.

While the Civic and Accord are not worth much, their individual parts are. The sound system, seats, airbags and other parts can be sold individually and are worth a lot on the black market due to the demand of older parts over new parts.

Even if you have checked out some confessions of a car salesman and carefully studied the evil “four-square” technique, there are still some things you could say that tell a salesman you are a soft target.

1. I love, love, love this car
Even if you fall in love with a car, maintain your composure and don’t let the salesman realize it. It is easy for salesmen to manipulate you when they know that you will do almost anything to own the car.

2. I need to get a car by tomorrow
Even if you need the car quickly, act like there’s no desperate need for the car. If he senses your desperation he will realize that you won’t be thinking carefully about your choice and will accept most anything.

3. I need a monthly payment of…
The monthly payment is only one part of the equation. A salesman can give you that monthly payment and still rip you off in another area such as in the number of payments or trade-in value. Ideally, you should calculate what you can afford based on your monthly budget and expected trade-in value and negotiate that big number. Now, agree on a monthly payment and then negotiate any trade-in value.

4. My trade-in is outside
If you let him know it is outside he will want the keys. If the deal starts to go south, your keys may be somehow misplaced in which case you will be forced to listen to his sales pitch longer than you want to.

5. I don’t know anything about leasing
Even if you don’t plan on leasing a car, you should learn about leasing to help make you impervious to the salesman who may try to sell you the idea. Usually, leasing only makes sense if you know that you won’t be keeping the car for several years. If you do plan to lease, you should be familiar with the costs of leasing beyond monthly payments. You should also be aware of how many miles are included in the lease and any money that needs to be paid up front or at the end of the lease.

6. My credit is a little spotty
Often, consumers underestimate their own credit score. Ideally, you should try to secure a loan you can use for “plan B” in case you don’t like what the dealership has to offer. This gives you bargaining power and lets you know more clearly where you stand with your credit rating.

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.