By John - November 6th, 2012 02:19 AM
There is always a risk when buying used vehicles, and salvage title fraud is a serious concern. Luckily, you can avoid salvage title fraud by taking a few precautions before you sign on the dotted line. With the right information, you can protect yourself from unscrupulous dealers and make a sound investment.
Understand the Salvage Title Business
It is important to understand that all salvage title cars are extensively damaged. A car gets a salvage title when it loses at least 70 percent of its value due to damages and is deemed not worth repairing by insurance companies.
Most often, salvage title cars are sold at auction and purchased for their parts or by rebuilders who bring the car up to safety standards. Once repairs are made, they sell the car with the disclosure that it was previously wrecked. Buyers, aware of the car's history, purchase the previously wrecked vehicle at a reduced price.
There is nothing wrong with buying a salvage title vehicle as long as you understand that the car has suffered hefty damages and has since been rebuilt. The problem is that shady dealers sometimes try to pass off salvage title vehicles as normal used cars.
Inspect the Car
A careful inspection by a professional mechanic is one of the best protections against salvage title fraud. A trained eye will notice problems like paint over spraying or water or frame damage. These are all hints that the car has been rebuilt.
Look for Water Damage
Inspect the car for signs of water damage, like stains in the engine compartment, doorjambs and trunk. Check under the seats for mud and look for rusty or greenish electrical connections. Look at the transmission and oil fluid. If it's milky, that a sign of the fluids being mixed with water.
Odometer Rollback
This sneaky trick is a hallmark of salvage title fraud. Check the odometer for signs of tampering. An uneven line of numbers or signs of removal may indicate that the actual mileage is off.
Check the Vehicle History Report
To avoid becoming a victim of salvage title fraud, always check the full vehicle history report before you buy.
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