Dodgy used cars cost Aussies $530m each year

Sydney, Australia, 21 August 2013: Used car buyers be warned – if a used car deal sounds too good to be true, it probably is. Tens of thousands of Aussie used car buyers are falling victim to fraud and deceit, and it’s costing Australia a whopping $530 million¹ each year.

 

A new report from vehicle history site CarHistory.com.au, run by data agency Veda, reveals that in the 12 months to April 2013 more than 120,000 Aussies fell victim to car fraud or deceit, with each incident costing an average of more than $4400. 

 

Head of CarHistory.com.au, David Scognamiglio, said the report was a timely warning for consumers as the used car market was traditionally inundated with vehicles in the months following tax time.

 

“We usually see an increase in used cars on the market as people trade in or sell their vehicles to take up new car offers at the end of financial year.

 

“For consumers faced with such a range of choice, buying a used car can be a daunting process. If you don’t do comprehensive checks, it’s easy to unknowingly purchase a dodgy used car.

 

“Over a third of used cars (36.8%) are valued at less than $10,000 so when you’re talking about a dodgy car that’s cost the owner over $4400 to repair, you’re talking about about a big chunk of the purchase price,” David said.

 

He said common issues with bad deals included vehicles that had been written off, had the odometer rolled back, previously been reported as stolen, have money owing, or been flooded or storm damaged. 

 

The majority of respondents (88.2%) said the condition of vehicle was one of the most important factors when considering a used vehicle purchase, however a quarter of used car buyers were unsure as to whether they knew the full history of the car they purchased. 

 

“People often rely on a mate to check the car they’re buying. While your friend might know what they’re doing, there is a whole lot of stuff they won’t be able to tell you. 

 

“Most people know they can do an encumbrance check to look for any finance owing on a used car, however many don’t realise that information about whether a car has been written-off, or had the odometer wound back, can be tracked. Not knowing that your car has previously been written-off might not prove just a costly mistake, it could also be a potentially dangerous one,” David said.

 

He said the best way to protect yourself from getting ripped off was to get an independent inspection by a mechanic and get a CarHistory.com.au report* – the only vehicle report that covers odometer readings from trusted sources as well as a range of other issues common to bad car deals, including an outstanding finance check.

 

Of the buyers who have fallen victim to fraud or deceit in the last 12 months, 64.6% purchased the vehicle from a private seller. 

 

“Unfortunately there are a lot of people out there who are willing to deceive unsuspecting used car buyers, with 17% of sellers saying they would not tell a potential buyer that the car had been written off and repaired.  

 

“The good news for buyers is that many car dealers² will now give you a CarHistory Report on the used vehicle you’re considering,” David said. 

 

Through providing access to extensive data, CarHistory.com.au aims to reduce fraud and improve transparency in the sale and purchase of second hand vehicles in Australia. 

 

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