The deceptive schemes when buying used cars

[Lee]

I have never heard of some of these scams.

Quote

 

PURCHASING a used car can be a sensible choice when looking for an affordable ride. While the appeal of a brand-new car might be enticing, used cars often offer cost-effective alternatives. If you don't mind skipping the "unboxing" experience and a few thousand kilometers on the odometer, the used car market may be perfect for you.

However, the used car buying experience can quickly turn into a nightmare if buyers aren't cautious. In addition to the necessary physical inspection of the vehicle, there are critical aspects to consider before finalizing the purchase.

Foremost among these considerations is the legitimacy of a used car's documentation. It's vital to ensure the legal status of the vehicle, as there are syndicates that engage in the sale of cars with counterfeit or illegal documents. While many reputable used car sellers exist, there are also dubious individuals and scams that target unsuspecting buyers.

So, how can you avoid falling victim to these scams? First, let's explore some of the schemes you should be aware of. Fortunately, the Banko Sentral ng Pilipinas has issued a memorandum (M-2021-047) that outlines some of the ploys and tactics used by car theft syndicates. This information can serve as a useful warning for potential buyers.

One fraudulent scheme to be vigilant about is the "rent-tangay" and "rent-sangla/benta" schemes. In these scenarios, criminals rent vehicles from car rental companies or private individuals and then sell or pawn the leased vehicles to unsuspecting buyers without the consent of the registered owner or lessor. In all such cases, counterfeit documents are used to facilitate the sale.

Another deceptive practice is the "assume balance" scheme, where scammers sell cars they acquired by taking over mortgage loans. Instead of making the monthly payments, these individuals use forged documents to sell the cars. This scheme can also involve acquiring a car through a loan program in someone else's name, with the scammer pocketing the payments instead of remitting them to the bank or lending institution.

The "loan accommodator" scheme is yet another fraudulent arrangement, in which the perpetrator acquires a vehicle through a legitimate business that cosigns the car loan. The scammer then sells the vehicle using falsified documents, often without the consent of the accommodating business.

Finally, the "labas casa" scheme involves the perpetrator obtaining a car loan from a dealership using fake documents, and subsequently selling the vehicle to an unsuspecting buyer, again, with counterfeit documents.

In all these scams, a common thread is the use of falsified documents, including fake official receipts (OR) of registration and certificates of registration (CR) supposedly issued by the Land Transportation Office (LTO). Before buying a used car, it's imperative to verify the authenticity of these documents with the LTO. It's worth noting that other scams may involve legitimate CRs but are encumbered by an accommodator or a company. In such cases, reach out to the registered company that owns the vehicle to confirm if they are indeed selling it willingly. Ensure that all necessary supporting documents are included in the sale.

Opting for a used car is a practical decision, but exercising caution, especially when it comes to verifying the legitimacy of the vehicle's documentation, is crucial. Regardless of how pristine a used car may appear, if it was obtained through any of the aforementioned schemes, it is essentially a stolen vehicle. Be a smart and vigilant used car buyer. Your diligence can save you from falling victim to deceptive practices in the used car market.

 

The deceptive schemes when buying used cars (msn.com)

[craftbeerlover]

buying a used car here is a REAL crap shoot, as many (I want to say most, but I wont), do not accomplish the basic preventative maintenance measures that most of us have during the course of our lives. 

[Old55]

2 minutes ago, craftbeerlover said:

buying a used car here is a REAL crap shoot, as many (I want to say most, but I wont), do not accomplish the basic preventative maintenance measures that most of us have during the course of our lives. 

I completely agree with you. In many cases maintenance is ignored due to cost and or ignorance.

[BrettGC]

In the west in most countries a quick VIN search would prevent these from ever getting off the ground, particularly encumbered vehicles (security for an outstanding debt).  I don't believe there's any such facility here unfortunately.  

Edited November 1, 2023 by BrettGC

[hk blues]

2 hours ago, craftbeerlover said:

buying a used car here is a REAL crap shoot, as many (I want to say most, but I wont), do not accomplish the basic preventative maintenance measures that most of us have during the course of our lives. 

 

2 hours ago, Old55 said:

I completely agree with you. In many cases maintenance is ignored due to cost and or ignorance.

Same with their houses.  

[Mike J]

I find the adds for new cars to very strange.  The adds will only say what the down payment is.  No mention of actual cost to purchase, no mention of terms, annual percentage rate, etc.   Not at all what I was used to in the US.  Asawa wants to buy a new car next year and I am not looking forward to the experience.  When we bought the multi-cab years ago, we took a trusted mechanic with us to inspect and test drive the vehicle.

Edited November 1, 2023 by Mike J

[BrettGC]

19 minutes ago, Mike J said:

I find the adds for new cars to very strange.  The adds will only say what the down payment is.  No mention of actual cost to purchase, no mention of terms, annual percentage rate, etc.   Not at all what I was used to in the US.  Asawa wants to buy a new car next year and I am not looking forward to the experience.  When we bought the multi-cab years ago, we took a trusted mechanic with us to inspect and test drive the vehicle.

Check the manufacturer's website.  Most of them have the price on there under the specific model.

With the finance, again, most of the websites have calculators based on down payment size, life of loan and monthly repayments.  You can work out the interest from there.  But same as you, I've never seen that rate actually advertised.

[RBM]

1 hour ago, Mike J said:

I find the adds for new cars to very strange.  The adds will only say what the down payment is.  No mention of actual cost to purchase, no mention of terms, annual percentage rate, etc.   Not at all what I was used to in the US.  Asawa wants to buy a new car next year and I am not looking forward to the experience.  When we bought the multi-cab years ago, we took a trusted mechanic with us to inspect and test drive the vehicle.

Why strange? Who gives a shi....about cost? Its all about affordability with down payment, even the monthly payments have little or any significance

[RBM]

15 hours ago, BrettGC said:

In the west in most countries a quick VIN search would prevent these from ever getting off the ground, particularly encumbered vehicles (security for an outstanding debt).  I don't believe there's any such facility here unfortunately.  

yes Brett there is, if one checks carefully the OR one can see if there is a stamp encumbered.....If so its a lengthy process to go through to clear it, better move on and find one that is clear.

[BrettGC]

2 hours ago, RBM said:

yes Brett there is, if one checks carefully the OR one can see if there is a stamp encumbered.....If so its a lengthy process to go through to clear it, better move on and find one that is clear.

Thanks, good to know.