Illinois Secretary of State warns of fraudulent auto sales

FARMERSBURG, Ind. (WTWO/WAWV)— The Illinois Secretary of State Alexi Giannoulias is warning residents of Illinois about the uptick in fraudulent vehicle purchases.

According to a press release, Illinois is seeing a rise in fraudulent car sales from out-of-state businesses that are licensed as wholesale dealers. These dealers are then falsifying the mileage on the vehicle’s odometer and title. An example was given in the press release of a wholesale dealer that was recently scammed into buying a vehicle that was listed at 80,000 miles, only to find out the odometer had been rolled back from over 200,000 miles along with failing to disclose major mechanical problems.

“My office is continuing to work with law enforcement and to educate the public to identify these scammers before they take advantage of customers,” Giannoulias added. “It’s imperative that buyers do their homework and know the signs before it is too late.”

Wholesale car dealer scams involve someone licensed in another state selling vehicles exclusively to dealers while posing as a private vehicle owner. According to the release, vehicles in Illinois are often sold through online advertisements and social media at low prices while in many cases they have serious issues or missing documents.

The National Highway Traffic Safety Administration estimates that more than 450,000 vehicles are sold annually with false odometer readings causing a loss of over $1 billion annually. In December, Carfax ranked Illinois fifth in the nation for the highest likelihood of this scam with 79,000 cars discovered with rolled-back odometers.

Giannoulias gave tips in the release to help combat these fraud cases.

1. When buying from an individual, always get the properly signed title at the time of purchase.
2. Make sure the seller owns the vehicle. 
3. If there is a lien on the vehicle, make sure it is paid off before taking ownership.
4. Look for evidence of erasing or other tampering with the title documents.
5. Make sure the wear and tear on the vehicle appears to match its age and mileage.
6. Closely examine the vehicle history report on Carfax, AutoCheck or the National Motor Vehicle Title Information System (NMVTIS) and compare the report to the name on the title, title number, VIN number, issue date and odometer reading. Compare the VIN on the vehicle’s dashboard against the title and history report.
7. Have the vehicle inspected by an automotive professional.
8. Never buy a previously junked vehicle, meaning the vehicle is inoperable, wrecked or dismantled. You cannot register the vehicle in Illinois and it cannot be rebuilt, no matter what it looks like.
9. If you believe you are buying from an individual seller, but the last assigned owner looks like a dealer name, do not buy it. You may have trouble registering the vehicle and you may pay additional taxes.

For more information, you can visit ilsos.gov to find resources for combatting this type of fraud. Giannoulias would like to remind residents as well that if they believe they are a victim of vehicle-related fraud to contact their local police department.