Experts at HPI identify 109 stolen cars daily and over 2,000 as insurance write-offs. To help used car buyers avoid adding to these statistics, HPI has compiled the most common ways used car fraudsters operate and is advising how not to fall foul of their scams.
Many motoring scams have remained the same for years, while others employ the latest tech to hoodwink unsuspecting customers. In either case, a used car buyer’s best defence is familiarising themselves with popular scams.
Scams range from tech-based mileage-blocking devices and clearance fraud to more traditional schemes such as odometer clocking and vehicle registration cloning.
Mileage blockers are a relatively new type of scam tool introduced by fraudsters that alters a car’s true mileage reading. The device, which can be cheaply bought online, restricts and lowers the mileage of a vehicle whilst driving.
Mileage blockers connect with smartphones to instruct a car’s odometer on what value the owner wants the odometer to display or when to stop recording mileage. This practice is particularly unscrupulous because the owner can still provide a complete car service record history with bogus mileage that looks genuine and legal.
Under UK law, altering the mileage on a car is legal, but it is illegal to sell that car without disclosing any known mileage discrepancies to the buyer. However, it is possible to be prosecuted for mileage fraud under the Consumer Regulation Act if there is proof that the fraudsters are traders and have clocked a car for financial gain.
The practice of cloning involves changing a car’s identity. This usually happens because the car has been stolen, and thieves want to sell it quickly to an unsuspecting buyer. It can also happen when organised criminals want to avoid detection, so they clone a car that can’t be linked to them or, at a lower level, when offenders want to avoid paying traffic or parking fines generated by ANPR cameras.
Falsifying a car’s identity can involve changing the number plates, forging documents such as the V5 (the registration certificate) and tampering with the Vehicle Identification Number (VIN).
Clearance fraud is one of the more modern and organised scams and is when criminals seek out vehicle owners with outstanding finances. Experts at HPI report that one in every three cars they check still has outstanding finance. The seller is responsible for paying any remaining motor finance – such as personal contract purchase (PCP) or hire purchase (HP) – before the car is transferred to a new owner because they do not technically own the vehicle until it has been paid off.
Clearance fraudsters contact unsuspecting owners and offer to pay off the finance on their behalf if they sell them the car. Criminals will buy the vehicle for less than market value and then sell it for a profit without paying off the finance. That means the subsequent owner has a car with financial baggage that should never have been sold in the first place and which they cannot legally sell on.
Clocking involves reducing the odometer reading to make it look as though the mileage is lower than it really is. The lower the mileage, the greater the value, so buyers are deceived into thinking the car is worth more, and it could well be hiding a much greater level of wear and tear.
Checking a car for mileage discrepancies comes as standard in the HPI Check. By building up a history of a vehicle’s mileage across multiple data sources and millions of records, any discrepancies are highlighted, arming car buyers with the information and confidence they need when dealing with used cars. The company is continually making enhancements to its data as it invests to help motorists tackle fraud.
An HPI check will also verify the VIN number, provide a guide valuation and estimated fuel costs, and include an MOT history check.
Jon Clay, identification director at HPI, (pictured above) commented: “An HPI check is a one-stop shop to guard against vehicle fraud, but there are also plenty of things to look out for when inspecting a used car in person that can reveal a scam.
“When buying any used vehicle, it’s essential to understand its history. The HPI Check will flag any worrying information held against the vehicle by finance and insurance companies, the DVLA, the Police and other industry bodies. A comprehensive HPI Check is vital before buying a used car and is the first line of defence against vehicle fraud. Also, when conducting a mileage check, we can identify any mileage discrepancies using our extensive database with over 500m mileage records.”
HPI first launched its vehicle history check in 1938, highlighting that used car scams are nothing new. Conveniently absent documents, questionable mileage or something in a car’s back story that doesn’t quite stack up are just a few indicators that a potential purchase may not be all it seems.
Added Jon Clay: “Checking a car’s mileage with HPI, as well as looking more closely at the vehicle’s comprehensive history, can give prospective buyers peace of mind regarding mileage and vehicle provenance, and can lead to safer, happier motoring.”
For more information and advice, visit the HPI motoring scams blog.
