A large percentage of vehicles purchased, especially in recent years, are in used condition. Although you can’t really deny that brand new cars are impressive and reliable (plus the bragging rights are nice…), used cars can also provide some excellent benefits. They are typically much cheaper than a brand new car while still offering the buyer several years of use. This ultimately means that you can still drive a nice car without having to live on a macaroni and cheese diet. Buyers can even find used vehicles that are still covered under the manufacturer’s warranty, which is a huge plus for those who want that extra reassurance. The amount of warranty coverage that is left on the vehicle usually depends on how old the car is and whether it has exceeded the mileage limitation described in the warranty.

While the benefits are irrefutable, an inexperienced buyer may also want to consider the possible disadvantages to spend money on a used car. There is no telling exactly what kind of treatment the vehicle was subjected to, and sellers who are savvy in the dealings of used cars may be able to deceive buyers. The main concerns with buying a used car are title washing tricks and odometer or mileage fraud. Don’t be surprised if you’ve never heard of either of these as they are little known but very popular practices in the used car marketplace.

What’s Title Washing?

Title washing is a nasty practice that can lead you to believe that you picked a sturdy and reliable car when in fact you ended up with a lemon. The basic idea behind title washing is to sell off a car without letting the buyer know about the vehicle’s true condition. Flood damage and salvage statuses are the most common “conditions” that are wiped away with title washing because people are way less likely to purchase a vehicle that has sustained water damage or been reduce to salvage condition.

For instance, say your local used car dealer shows you a vehicle that, to your eyes, looks fantastic. It’s shiny, has low mileage, and would impress the heck out of your friends. –BUT the car has been marked as virtually worthless on the title because six months ago it sat with flood water sloshing up to its door handles. If the dealer could find a way to hide this information from you, you’d probably jump on the awesome deal he’s willing to cut you.

How Does a Seller “Wash” a Title?

Title washing is actually an ingenious process. When a title states that the vehicle is a “loss” due to excessive damage, it can still be sold but at a seriously reduced value. Obviously the dealer is going to have a hard time finding someone to buy the car, and even so he would still lose a lot of money in the end. By taking the car to a different state that does not recognize the title brand from the previous state, the seller can get a new title issued as “clear.” According to the new title the car is in good condition for its age and mileage–meaning the damage “never happened.”

Three Main Types of Title Branding

  • Clear Title – The clear status means that the car hasn’t sustained enormous damage that cannot be repaired. A clear title also means that no one else can lay claim to the car, such as a bank or lender.
  • Rebuilt – This means that the car has sustained a lot of damage but has been rebuilt. A car carrying a rebuilt or restructured title usually means that more of the car has been rebuilt than not.
  • Salvage – This means the car suffered so much damage that it is considered to be a complete loss. Be wary that even though a car looks good, it can still be considered salvage due to serious damage that may not be easily detected.

What’s Mileage Fraud?

Mileage fraud is a crafty business in which the seller changes the reading on the odometer. Obviously the more miles the car has driven the more likely it will be to need major repairs in the near future. By altering this reading, the seller is then able to make the car seem to be in better condition than it really is. Cars with digital odometers can easily be replaced and programmed to start from any number.

How to Avoid These Scenarios

In order to better avoid title washes and odometer fraud it is recommended that you get a history report such as Carfax or Auto Check. These services charge per report but by running the vehicle identification number (VIN) you can get an un-doctored report of the car’s history.