The Expert Podcast

We're seeing this more and more with these fake auto sellers. They might have a vehicle for sale online and ask you to ship money, promising to send you the car. They might even have the physical car available for you to look at, but it's not a licensed dealer. One of the things you want to do anytime you're buying a vehicle from a person or company is verify that you are buying from the right source. There are only two ways you want to buy a vehicle: either from a private party who is the owner of the vehicle or a licensed dealer. You have to verify both of these options.

If you're buying a vehicle from a private party, what you want to do is look at the title, check the name on the title, and make sure the person you're dealing with is the same person whose name is on the title. Avoid transactions involving a third party flipping the vehicle, such as "I'm selling my cousin's vehicle" or "I got it from an auction." If the person on the title is not who you're dealing with, don't buy the car. Here's why: vehicle titles cannot be reassigned. Once a vehicle title is signed over to another person, that person has to get a new title before it can be sold to someone else.

For example, if someone is flipping cars and buys a car from John Smith, but their name is Sally Jones, Sally Jones cannot resell it to you until she gets a new title. If a car has been flipped and you're not dealing with the person whose name is printed on the front of the title (not written on the back), you could have a title problem.

Another issue to watch out for is unlicensed, fly-by-night car dealers. These dealers pretend to be legitimate dealerships, but they're not licensed. How do you verify this? Get the name of the business and their address, and check with the Licensing Bureau of your state to see if they have a valid auto dealer's license. If you're buying from a company without a valid auto dealer's license, they are not legally allowed to buy and sell cars for a living.

Now, if you're buying from a company like "Joe's Plumbing" that owns a bunch of trucks and is selling a vehicle with a title in their name, that's a different story. However, if you're buying from a company flipping cars, buying cars at auctions, and not operating as a licensed dealer, that's not allowable under the law. For example, a couple in Oregon lost $45,000 because they bought a vehicle from a fake dealership dealing in stolen cars.

If you buy a car from a licensed dealer and they make a mistake, such as selling you a vehicle with a title problem, they are supposed to make it right. Licensed dealers are bonded, and there are funds to compensate for such errors. Make sure when you're buying a vehicle that you protect your hard-earned money. Either buy from the person whose name is printed on the title or from a company that can verify their dealership license and show you the title.

Even if they can't hand over the title immediately because they need to process it into your name, make them show it to you to confirm they actually own the vehicle and aren’t selling a car they haven’t paid for yet.

If you found this video helpful, check out other videos on our channel for additional information about similar topics or related subjects that could assist you in resolving your issues.