Spotting the Fakes: How to Avoid Car Title Scams
Download MP3Episode Highlights:
- Understanding Car Titles:
- A car title is a legal government document, similar to money or other official certificates.
- Titles can only be issued by a government agency, such as the Department of Motor Vehicles (DMV).
- Copies or counterfeit titles are not valid, just like a photocopy of a $100 bill.
- The Rise of Fake Titles:
- Scammers use sophisticated technology like laser printers to create fraudulent car titles and certificates of origin.
- Certificates of origin serve as a vehicle's "birth certificate" and are created by the manufacturer before a title is issued.
- Fake certificates of origin are particularly concerning since they don’t show up in VIN searches until the vehicle is titled.
- How to Verify a Car Title:
- Take the VIN number in person to the Department of Motor Vehicles (DMV) for a full title search.
- Avoid relying on online VIN checkers like Carfax, as they may provide incomplete or inaccurate data.
- Visit your local law enforcement agency to check if the vehicle is reported stolen.
- Red Flags and Precautions:
- Ensure the seller’s name on the title matches their government-issued ID.
- Avoid titles that are signed over to multiple parties or improperly endorsed.
- If buying from a dealership, confirm they possess the car title before making a payment.
- Special Tips for Buyers:
- Double-check the title’s authenticity and the seller’s identity.
- For dealership purchases, verify that the dealer owns the title outright and it’s free of liens.
Additional Resources:
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