Buyer Beware

Buyer Beware



By: Lawrence S. Searcy, Jr.



On a Saturday afternoon, while reading through one of the many automobile trade magazines that come to the office, I noticed another article about two used vehicle dealers being arrested for odometer fraud. Unfortunately, this kind of crime is not uncommon and despite federal laws aimed at protecting consumers, a number of unsuspecting car buyers are defrauded each year by odometer fraud. In this particular article two dealers in Wyoming conspired for four years to misrepresent the mileage on the vehicles that they sold. The dealers would allegedly buy high mileage vehicles and then roll back the odometers and change title documents to increase the value of the car. Every customer that bought a car from these two dealers could have prevented the fraud with a little extra investigation into the car’s history.

This story is important because it notes a growing trend in used car sales. Even though digital odometers are more sophisticated than their old mechanical cousins, they are not immune from tampering. In fact, the National Highway Safety and Traffic Administration (NHSTA) estimated that between 2002 and 2005 approximately 450,000 vehicles have been sold each year with false odometer readings. Total cost of the fraud to consumers is estimated at $1 billion annually.

Congress passed the Federal Odometer Law to prohibit the disconnection, resetting, or alteration of a vehicle’s odometer with the intent to change the mileage stated on it. The law now requires written mileage disclosures to all buyers when ownership is transferred. The law was passed because Congress realized that consumers rely heavily on the mileage to determine issues of price, safety, and reliability.

To protect yourself from unscrupulous dealers, research the vehicle before you purchase. It is best to buy from a reputable franchised dealer and ask questions about the car’s history. For instance, Walker Automotive offers a free Carfax on every pre-owned vehicle. By offering the Carfax upfront, customers can be confident that they are buying a quality, pre-owned vehicle. Providing the customer with a free Carfax report gives the customer the peace of mind that the vehicle has not been wrecked, damaged, or driven more miles than stated on the odometer. If a dealer refuses to give you a Carfax report or similar ownership information, the buyer should be suspicious and use extra caution before purchasing that car from that dealer.

A Carfax report can also be ordered online with the 17 character Vehicle Identification Number (VIN) and for a nominal fee. Each report will contain title information, flood damage reports, total loss accident history, lemon law or other manufacturer buy back claims, the number of owners and other pertinent information.

In addition to Carfax, official state reports on vehicle can be obtained from the state for a nominal fee. Louisiana provides the records by requesting information from the Department of Public Safety, Motor Vehicle Division, in Baton Rouge. A charge of $7.50 will be required for the records. Be sure to contact the office at (225) 925-6388 before making the request because the costs may have changed. When requesting the documents from the DMV be sure to specify what type of information you want and include the VIN, the year, make and model of vehicle. If you suspect that a vehicle odometer may have been tampered, a complaint can be made to the Louisiana Attorney General Auto Fraud Section in Baton Rouge.

Pre-owned vehicles can cost a lot of money and a little investigation can go a long way. Protect yourself from fraud by researching the vehicle’s ownership history before you buy. Beware of dealers that won’t give you the information for free or won’t access the information while you are at the dealership. A Carfax report can be obtained in minutes and it might make the difference of thousands of dollars in the selling price.

Walker WOW Factors

• On any given day Walker Automotive has almost 1,000 vehicles in stock.

• Every year more than 4,000 customers purchase from Walker Automotive.

• In June 2009 Walker Automotive was named #64 on the list of the largest automobile dealers in America by Wards Dealer Business

• Walker has been family owned since 1919 and now is operated by its third and fourth generation family members.

• Walker Automotive is the largest volume dealer in Central Louisiana selling 1 out of every 3 new cars in the area.

• Our employees have an average tenure at the dealership of more than 10 years.

• Walker Automotive is the only General Motors Certified Collision Center in the area.

• Walker Automotive has an A+ rating from the Better Business Bureau