Rise in vehicle fraud prompts Colorado State Patrol warning

NEWS RELEASE
COLORADO STATE PATROL
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The Colorado State Patrol and all Certified Vin Inspectors are seeing a rise in vehicle fraud, prompting a warning for vehicle buyers statewide. If you see a vehicle for sale; and the car is perfect, the price is well below comparable vehicles, and it seems too good to be true – it probably is too good to be true.

Vehicle fraud is a generic grouping for any attempt to pass off a vehicle as something other than what the vehicle actually is during a sale. This type of crime includes title fraud, odometer fraud, and motor vehicle theft – to name a few. When you find a vehicle for sale that seems “unbelievable,” look for the following indicators that the seller is attempting to defraud you and how to check if it’s a scam.

How to identify a possible scam

1. The vehicle is listed well below similar vehicles.
2. A private seller lists the vehicle, and the advertisement says, “Cash Only.” The account listing the vehicle was created recently and has very little content and the advertisement makes some appeal to emotion: “Only selling to pay medical bills.” Or “Need to sell quick due to hard times,” etc.
   1. On popular websites such as Facebook marketplace, eBay, Craigslist, and offer-up, if a seller's account is nearly blank and has little to no history, this may be a good indication that this person is trying to leave as little of a trace behind as possible.
   2. Not all personal sales are bad but be sure you know who you are dealing with.
3. Be wary of any vehicle where the vehicle is titled out of state and the seller has not transferred the title to Colorado. This will require, at the very least, additional steps to transfer the title, but it is a large red flag a vehicle may not be what it seems.
4. The vehicle is being sold by an automotive “dealer” not on the Colorado Department of Revenue list of authorized dealers.

Fraudulent vehicle dealers appear legitimate but often sell several vehicles in a few days and disappear overnight. Then, the vehicles are found to be stolen or the titles fraudulent. Be sure the Colorado Department of Revenue vets any automotive dealer you purchase a vehicle through this website.

How to verify a vehicle’s value

A great way to determine fair market value for a vehicle is to check sites such as Kelly Blue Book and Edmunds to determine what the price range for a vehicle in the listed condition would sell for.

How to verify a vehicle’s identity

All vehicles arriving from out of state must undergo a certified VIN inspection through the Colorado State Patrol before being registered. Most title frauds or attempted title washes are sold to unassuming buyers using an out-of-state title the buyer is not familiar with, and then the vehicle is discovered to be stolen or the title fraudulent during a VIN inspection.

1. If a vehicle has an out-of-state title, have the seller complete a VIN inspection or Certification before the sale.
2. If you encounter a vehicle listed as certain trim types such as “King Ranch,” “WRX,” or “SVT,” but you aren’t familiar with the vehicle to discern the difference. Visit the NHTSA VIN decoder to determine what year, make, and model the VIN shows. If the VIN decoder differs from the advertisement, this may be a big red flag that the vehicle isn’t what it appears to be.

Finally, once you are confident the vehicle and the seller are everything they seem to be, ensure you have all the right documents for the sale. All documents and templates are available via the Colorado Department of Revenue website

For a complete list of vehicle buying resources, click here. The Colorado Auto Theft Prevention Authority, a part of the Colorado State Patrol, operates this website.

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