The scam is when a dealer is intentionally trying to sell you a vehicle they’re aware has been previously damaged by flood, fire, or in a previous major accident and does not disclose it to you upfront at the beginning of the car buying process.
If you ask the salesman about the vehicle he may tell you the vehicle has never been in an accident and it’s in great shape. He may even tell you he’s drove the car himself and not had any problems with it. Fact is, he’ll tell you anything you want to hear to get you to buy the car today.
Federal law requires a dealer must post a used car “Buyer’s Guide” sticker in the window of each used car for sale on the lot. This sticker must have the words “As-is, No Warranty” located somewhere on it.
You’ll be asked to sign this form when you do your paperwork and take delivery of the car. This means when you buy the vehicle you’re assuming all risk, accepting any previous damage or discrepancies with the vehicle, and cannot return the vehicle because of such.
You decide to buy the vehicle, sign all the paperwork, and drive your car home. About 2 months later you hear a weird sound and decide to take it in for service. This is normally how people find out the vehicle has previously been in an accident.
You go back to the dealer you bought the vehicle from and tell the manager you were told by the salesperson that the car was never wrecked. The manager reverts to the “As-is, Where-is” form you signed when buying the car and explains to you that you have no recourse. It’s your word against the salesperson’s word and you signed a form accepting the car “As-is.”
Sometimes a car dealer or its salespeople will be unaware of a vehicle has been in a previous accident. This is when it becomes your ultimate responsibility to protect yourself and your financial well-being.
Branded title vehicles can even show up in a dealer’s “Certified Used Car Program.” I’ve seen several vehicles slip through the dealer’s used car inspection process unintentionally (and some intentionally).
The car salesman will tell you in casual conversation the vehicle you’re looking at has never been in a wreck and you will take it as gospel. The truth is the salesperson may or may not have a clue about the history of the vehicle. He said, she said is very difficult to prove in court. Don’t take a salesperson’s word and always protect yourself when buying a used car.