Has it Been Wrecked?
The rebuilt title used car dealer scam is also known as the salvage title scam or branded title scam. This dealer manipulation may end up costing you thousands of dollars and can be financially devastating if you’re unaware of how to protect yourself from it.
All Car Dealer Scams
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 do not disclose it to you up front 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 salespersons word and you signed a form accepting the car “As-is.”
Sometimes a car dealer or its salespeople will be unaware of a vehicle having 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 dealers “Certified Used Car Program.” I’ve seen several vehicles slip though a dealers used car inspection process unintentionally (and some intentionally).
Car salesman will tell you in casual conversation they vehicle you’re looking at has never been in a wreck and you will take it as gospel. Truth is the salesperson may or may not have a clue about the history of 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.
The rebuilt title scam becomes an issue when a car dealership knowingly sells you a vehicle that’s been seriously damaged by flood, fire or accident and the title has been branded as such.
The dealer does not disclose the title issues to you and also has you sign an “As-is, Where-is, No Warranty” document stating you’re buying the car and assuming all responsibilities, risks and defects the vehicle may already have.
Once you’ve signed the contract and all the required documentation. It becomes a “he said – she said” issue. If you’ve signed all these documents it will be very difficult (and expensive) to prove in a court of law the dealer did not disclose to you the vehicle was salvaged and rebuilt.
RydeShopper will search clearance prices in your local area. Their huge dealer network will help you find your next used car quickly. Make sure you select all the dealerships in your area to maximize your discounts and savings.
Edmunds is one of the oldest used car research and review sites on the Internet. You're guaranteed to find a great deal on a used car within their hundreds of thousands of vehicles listed online.
MotorTrend is one the best kept price quote secrets on the Internet. They are an affiliate of the popular MotorTrend Magazine. The well known brand has partnerships with dealers all over the country. Use their simple car price quote service to find your next vehicle.
CarsDirect has been in business for well over a decade. Their search tool makes it easy to find the exact car you’re looking for. Simple search and navigation will help you narrow your choices down to the perfect vehicle.
Recommended vehicle history reports
You can trade-in a vehicle with a branded title at most dealerships, the only problem you may have is they’re going to give you a lot less money than what the actual cash value is if the vehicle did not have a branded title.
The unwritten rule for assigning a value to a vehicle with a rebuilt or salvaged title, no matter how well they’re put back together, is you take “rough black book and cut it in half.”
What this means is you take the lowest category of market value, which is rough, cut the value in half and that’s the starting point before any reconditioning deductions. This is another reason why you don’t want to get stuck paying full retail of a branded title vehicle.
You can sell the vehicle on your own and get more money than what a car dealer will give you for it but make sure you let the buyer know the vehicle does have a rebuilt or salvaged title.
Some people actually do not care if a vehicle has a branded title as long as the vehicle is safe, reliable and you’re selling it at a fair price.
Find out how much the car is really worth by researching its past history.
