More frequently than one may believe, auto dealers sell used cars that have been wrecked or salvaged without disclosing this to the consumer. Dealers sometimes sell used cars that were stolen and later recovered without disclosure.
Consequences of Salvage or Wrecked Vehicle Fraud
Such car dealer fraud can have serious consequences. For example, used cars may be sold without air bags because they are expensive to replace and often left off of repaired wrecks.
Here in the Southeast, we are seeing many automobiles that were flooded in either Louisiana or Georgia that are being sold without disclosure. Flood damaged cars may be unsafe due to electronic malfunctions, corrosion and rust.
Another important aspect of rebuilt wreck fraud is the diminished value of the car because it has been wrecked. Any time a car has been wrecked, even if it has been repaired properly, it still suffers a diminished value-that is, the car is worth less in the open market. This diminished value harms the consumer in the resale, the equity he may have, and it harms the bank or financial institution which financed the purchase as the value of the collateral is less than they planned.
Protect yourself from purchasing a wrecked or salvaged automobile by learning how to identify a damaged used car.
Other Types of Auto Dealer Fraud
- Used Car Fraud: The Real Story Behind Carfax
- Auto Warranty Fraud: The Window Sticker
- Odometer Fraud
- Bait and Switch Fraud
- Yo-Yo Car Sales