Be Wary of ‘Washed’ Car Titles
Used car shoppers should beware of an emerging fraud called title washing, with consumers in New Jersey, North Carolina, Mississippi, California and Georgia said to be at particular risk. That’s according to a report issued by the title search company Carfax in Centreville, Virg., which indicates as many as 800,000 vehicles may be affected nationwide.
Here, con artists illegally remove “salvage” or “flood” designations from vehicle documents to make wrecks look like problem-free models, at least on paper. Cars are often hastily repaired and/or freshened and transported to other states where they’re sold with supposedly clear titles. “Our research is clear evidence that title washing continues to fly under the consumer’s radar,” says Larry Gamache, Carfax’s communications director. “These cars are sold mainly by perfect strangers who bank on you not taking the proper steps to protect yourself.”
Buyers are advised to shop for used cars at dealerships where vehicle history information is readily available or at the least have a title search conducted according to a car’s VIN (vehicle identification number) before buying from a private party.