What are Possible Red Flags or Signs of a Scam When Buying a Car? 

Buying a used car can be an exciting milestone, offering the chance to find a great vehicle that suits your needs and budget. However, with so many options available, it’s easy to feel overwhelmed by the choices and possible risks—including potential scams. Let’s take a look under the hood at 10  key warning signs of potential scams in the car buying process, especially for a pre-owned vehicle.

1. Inconsistent vehicle history report

A vehicle history report is essential for understanding a car’s past. It includes information about previous accidents, car title status changes, and service history.

If you spot inconsistencies or discrepancies, it could hint at hidden issues. Always request a report from reputable sources like Carfax or AutoCheck and compare it with the seller’s claims. This will give you a clear picture of the car’s past and help ensure it’s in good shape.

2. Unusual or uneven wear and tear

Excessive wear and tear can signal that a car has been poorly maintained or driven hard. Look for signs like worn-out seats, rust on the body, or uneven tire wear. 

These indicators might suggest that the car has been used more than the odometer reading shows or that it could have mechanical problems. Pay close attention to the car’s physical condition as it can reveal a lot about its history.

3. Suspiciously low price

A price significantly lower than the market value is often a major red flag and a potential sign of a scam. It may indicate that the seller is eager to offload a vehicle with hidden problems. 

To protect yourself, research the car’s trade-in value and compare it to the asking price. If the deal seems too good to be true, it’s worth digging deeper to understand why.

4. Inconsistent service records

A well-maintained vehicle should come with comprehensive service records. If the seller cannot provide detailed maintenance history, it might indicate neglect. 

Look for records of routine servicing, oil changes, and major repairs. Regular car maintenance is crucial for a car’s longevity, so make sure that the car has been properly cared for.

5. Warning lights on the dashboard

Before purchasing a used car, take it for a test drive and check for any warning lights on the dashboard. 

Warning lights can indicate issues with the engine, transmission, or other critical systems. If the seller dismisses or ignores these lights, it could point to underlying problems that need addressing.

6. Unusual noises or smells

During the test drive, listen for any unusual noises or smells. Grinding, squeaking, or knocking noises could signal mechanical issues, while a car that smells like rotten eggs  might indicate problems with the catalytic converter. 

These symptoms should be investigated by a mechanic before making a purchase to avoid unexpected repairs down the road.

7. Overly clean interior

An overly clean interior can be a red flag, especially if it contrasts with the car’s overall condition. Sellers might clean the interior to hide signs of a damaged car. Examine the interior closely for any repairs or damage that could be concealed under the fresh cleaning.

8. Missing or inconsistent paperwork

Check that all necessary paperwork is present and consistent, including the title, registration, and service records. 

Missing or incomplete paperwork can signal potential issues with the car’s ownership or history. Verify that the Vehicle Identification Number (aka VIN) on the car matches the one on the documents to avoid complications.

9. Odd behavior from the seller

Be cautious if the seller is evasive, unwilling to answer questions, or seems overly pushy about closing the deal quickly. Such behavior might indicate they are trying to hide something about the car. Take your time to evaluate both the vehicle and the seller’s credibility.

10. Problems during a professional inspection

Always have a trusted mechanic conduct a pre-purchase inspection before buying a used car. They can uncover hidden issues that may not be obvious during a test drive.

If significant problems are found, it might be best to reconsider the purchase. A professional inspection provides an objective assessment of the car’s condition.

Tips for a safer used car purchase 

When embarking on the journey to buy a used car—whether you’re a seasoned car buyer, or embarking on this journey as a new driver—it’s important to do your due diligence, so you don’t drive away with a lemon.

Here are some tips to consider before signing on the dotted line::

Conduct thorough research 

Before you even step into a dealership or meet a private seller, take the time to research the model and any specific features you’re interested in. Resources like Kelley Blue Book can show you fair prices for the type of car you’re considering.  

Ask the right questions 

When searching for a car, knowing the right questions to ask the car dealership or private seller can help you avoid potential pitfalls. Inquire about the car’s history, including previous accidents, number of owners, and whether it has a clean title. 

Check out our full guide on questions to ask when buying a used car, if you’re interested, or click below for a pocket sized cheat sheet of questions you can take on the go when you’re checking out used cars.

Take a test drive 

Never underestimate the power of a thorough test drive. Use this opportunity to assess the vehicle’s performance, comfort, and handling. Pay attention to how the car starts, accelerates, brakes, and if any warning lights appear during the drive.

Watch for scammers 

If you notice any warning signs that the seller might be a scammer—such as evasive behavior, inconsistent information, odometer fraud, tampering with documents, or an unusually low price—take action to protect yourself. 

Contact local law enforcement or consumer protection agencies to report suspicious activity. It’s better to be on the side of caution and ensure that your car-buying experience remains safe and secure.

Walk away when necessary 

Trust your instincts throughout the process. If something feels off, whether it’s the seller’s demeanor, the car’s condition, or your gut feeling, don’t hesitate to walk away. There are plenty of cars out there, and the right one will come along.

Before we go…

Once you’ve successfully navigated the process of buying a used vehicle, it’s essential to take a few more steps to safeguard your new investment. One of the most important actions you can take is to ensure that you have the right car insurance coverage for your needs, and your wallet. 
Ready to take Lemonade Car for a spin? Click below to get your free quote so you can hit the road with confidence in your new-to-you ride.

A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.