Common used car scams and how to avoid them
Last updated: 19 June 2026
From mileage rollback to cloned cars and fake escrow, here are the most common used car scams and the simple steps that defeat them.
Scams thrive on urgency
Almost every scam relies on pressure: a price "too good to miss", a buyer who must decide today, or a payment that must happen now. Slowing down is your best defence.
1. Mileage rollback
A wound-back odometer makes a worn car look fresh. Cross-check service records and a history report, and compare wear with the claimed mileage.
2. Cloned or stolen cars
A stolen car wears another car's identity (plates and VIN). Verify the VIN in every location matches the documents, and be wary of cheap prices with thin paperwork.
3. Hidden write-offs and repairs
A car repaired after a serious accident may be unsafe. A history report reveals insurance write-offs; a careful inspection reveals body and structural repairs.
4. Outstanding finance
If the seller still owes money on the car, the lender can reclaim it after you buy. Run a finance check before paying.
5. Fake escrow and shipping scams
Online, beware sellers who refuse to meet, ask for deposits via gift cards or wire transfer, or push a "secure escrow" link. Never pay for a car you have not seen in person.
6. Curbstoning (unlicensed dealers)
Someone posing as a private seller but flipping many cars ("selling for a friend", won't meet at home) dodges consumer protections. Ask to see the registration in their name.
Your simple defence kit
See the car in person and cold, verify VIN and ownership, run history and finance checks, never overpay a deposit, and get an inspection.
A CarGuard AI report plus a history check turns most of these scams into obvious red flags before you lose any money.