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The Most Common Used Car Scams in Australia (And How to Avoid Them)

7 min readBy Jez Smith
The Most Common Used Car Scams in Australia (And How to Avoid Them)

The Most Common Used Car Scams in Australia (And How to Avoid Them)

Australia's private vehicle market is a target for a range of sophisticated scams. Some are crude and easily spotted; others require the same checks that any responsible buyer should do anyway. Here's your guide to recognising and avoiding the most common schemes.

Watch: The Most Common Used Car Scams in Australia (And How to Avoid Them)

The Most Common Used Car Scams in Australia (And How to Avoid Them)

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1. The Curbstoner

A curbstoner is an unlicensed dealer posing as a private seller. They purchase vehicles wholesale, often with hidden defects, and list them as private sales to avoid dealer obligations.

Signs:

  • Multiple vehicles listed at the same address or from the same phone number
  • Reluctance to discuss ownership history
  • The car was "bought as a gift and never used" or "got a new one for work"
  • No personal connection to the vehicle
  • Protection: Run a National VIN Check — the seller's name should match the registration. Multiple registrations linked to the same address can be investigated through state roads authorities.

    2. VIN Cloning

    A stolen vehicle is fitted with the identity (VIN plate, registration label) of a legitimate vehicle — typically a written-off or deregistered vehicle of the same make and model.

    Signs:

  • The VIN plate looks too clean or too new relative to the vehicle's age
  • The VIN stamp on the chassis doesn't match the dash-mounted VIN plate
  • The registration certificate has a different address history than the vehicle's apparent use
  • Protection: Always check the stamped VIN on the chassis (not just the label) against the registration certificate. Run a National VIN Check — a VIN clone will typically show a mismatch between the VIN's recorded identity and the vehicle being presented.

    3. The Finance Concealment

    A seller lists a vehicle for private sale knowing full well there's significant outstanding finance. They collect the purchase price, don't pay out the finance, and disappear.

    Signs:

  • Urgency to complete the sale quickly
  • Unwilling to provide full documentation
  • Story that doesn't quite add up about how they acquired the vehicle
  • Protection: Always run a National VIN Check Basic report ($9.95) before purchase. This queries the PPSR immediately. Never hand over money without a clear PPSR result.

    4. The Salvage Title Seller

    A vehicle that was declared a statutory write-off (and can never be re-registered) is somehow presented with legitimate-looking papers. This is fraud.

    Signs:

  • The seller can't explain gaps in the registration history
  • Registration has been transferred multiple times in a short period
  • The VIN check shows statutory write-off history
  • Protection: A National VIN Check Premium report shows WOVR history. Any vehicle showing statutory write-off status should never be purchased.

    5. The Odometer Fraudster

    The odometer has been rolled back to show lower kilometres. This adds perceived value while concealing the vehicle's true wear and age.

    Signs:

  • Service stamps don't add up progressively
  • Physical wear inconsistent with claimed mileage
  • No service history (because it would contradict the false odometer)
  • Protection: Our National VIN Check Gold report ($29.95) includes odometer verification data.

    6. Online Payment Scams

    The vehicle doesn't exist. The seller is overseas (or pretending to be) and wants payment before inspection. A transport company will "deliver" the vehicle.

    Signs:

  • Vehicle price is dramatically below market
  • Seller can't meet in person
  • Requests payment via wire transfer, Bitcoin, or gift cards
  • Elaborate story involving deployment, divorce, illness, or urgent overseas move
  • Protection: Never purchase a vehicle you cannot physically inspect in person. Legitimate sellers are always willing to meet. If it sounds too good to be true, it is.

    Useful Australian Resources

    Popular places to browse and research your next vehicle — always run a history check before you buy.

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