Fraud Prevention

How can you know if the car you just bought has not been used by someone else or damaged by hail or vandals in the dealer's lot? An unscrupulous salesperson might be tempted to keep silent about it. After all, the car still looks brand new. If you want answers, ask questions. If the dealer tries to sell you a demo car or a damaged vehicle that was fully restored, it's up to you to take the risk. But don't be a fool! Ask for compensations or a substantial rebate.

Private sellers could also keep quiet on damage or mechanical issues that the vehicle they're selling might have, so getting it inspected with a written evaluation is always a good idea. If the seller refuses to let you have the car checked out by a mechanic, he or she may have something to hide.

Did you spot a car that's so inexpensive that it seems like a steal? If you contact a seller for extra information, and that person asks you for a cash advance before you even see the car or test drive it, you might be dealing with an unscrupulous seller who's trying to fraud you. If the price seems too good to be true, use extra caution.

Before you buy a used vehicle, we recommend that you follow these few tips to avoid getting ripped off:

• Do a road test both in the city and on the highway. Check the brakes to see if they're not warped or worn out and if they induce any vibration through the steering wheel. Keep your ears open for the slightest suspicious noise. If the car is equipped with a manual transmission, make sure that the clutch operates properly; with an automatic, shifts should be smooth and unhesitant. If possible, engage neutral and depress the throttle: if you see white or blue smoke in your rearview mirror, the engine might require significant repairs. Also, check the hand brake on a hill to see if it holds the car effectively. At the end of the road test, check the exhaust tip: white or brown is a good sign but if you spot any oil, beware.
• Visually inspect the bodywork in broad daylight. Look for bumps, dents, rust or any sign that the car has been reworked. Check the condition of the frame, exhaust system, windows and headlights. Make sure that all gauges and lights operate properly. Apply pressure at each corner to see how the suspension reacts: the car should not bounce more than twice. Examine the brake pedal: it you find it spongy or abnormally soft, this probably means that the braking system is defective.
• Inspect the interior, especially the seats, upholstery and seat belts, and make sure that their condition reflects the car's mileage.
• Finally, check the engine bay. Pay attention to the hoses and battery. Oil levels and cleanness should be up to standards.

When you buy a pre-owned vehicle, make sure you have all the information necessary to make an educated decision. In Quebec, for instance, the L'Office de la protection du consommateur requires all car dealers to include the following information on the label of vehicles on sale:

• The selling price (in the case of a purchase) and retail value (in the case of a lease).
• The mileage indicated on the odometer and the actual mileage (if different).
• The vehicle's production year, serial number, make, model and engine displacement.
• Whether the vehicle has previously been used as a taxi cab, driving school car, police car, ambulance, lease vehicle or demo, as well as the identity of the company or organization which leased the car.
• Any repair performed since the dealer has been in possession of the vehicle.
• The warranty.
• A mention that a mechanical verification certificate will be issued and delivered to the buyer.

This part concerns the consumer. True, consumers have rights, but with those rights come obligations. Should you suffer an accident and damage your car and/or injure yourself, it's your obligation to contact your insurer. Also, you should read your insurance policy to know exactly what will be covered.

To avoid frauds associated with your driver's license, the following recommendations will help you:

• Keep your driver's license, vehicle registration and insurance certificate on yourself in order to be able to show them on demand. Never leave them inside your car.
• At home, keep these documents in a safe place, especially if you share your apartment with someone else or if you hire a cleaning person.
• Whenever you get rid of your old driver's license, registration or insurance certificate, tear them apart instead of simply throwing them in the trash.
• Never leave your driver's license as a deposit for identification purposes; the personal information contained on your license could allow a third party to commit a fraud by using your name.
• Never give your driver's license number to anyone.