Avoiding Re-Vinned Vehicles: Tips for Dealerships and Buyers
The rise in vehicle thefts across Canada has led to a troubling trend—more and more dealerships are falling victim to the purchase of “re-vinned” vehicles. This surge is linked to increased law enforcement presence and success at recovering stolen items at ports, forcing organized crime to shift tactics. Instead of exporting stolen vehicles, criminals are now altering the Vehicle Identification Numbers (VINs) and reselling them locally. The practice, known as “re-vinning,” involves swapping a stolen vehicle’s original VIN with a counterfeit one, effectively hiding its identity and making it easier to sell to unsuspecting buyers.
This evolving trend poses a severe risk to both dealerships and consumers alike, as purchasing a re-vinned vehicle can result in significant financial loss, legal troubles, and safety concerns. Below, we outline several steps to protect yourself and your business from inadvertently buying or trading in a re-vinned vehicle.
How to Spot a Re-Vinned Vehicle
Here are some critical measures to help prevent the purchase of a re-vinned vehicle:
- Conduct a Comprehensive Vehicle History Check: Use trusted resources like CARFAX and Registration History to look for discrepancies in the vehicle’s records. Warning signs include:
- A model year mismatch (e.g., a 2019 vehicle first registered in 2022).
- U.S. service records appear after the car has been registered in Canada.
- Multiple recent ownership changes.
- Verify Seller Ownership Duration: Be cautious if the seller has owned the vehicle for a very short period before trying to sell or trade it in. This short time frame could indicate that they are trying to offload a re-vinned vehicle quickly.
- Perform a Thorough Physical Inspection: Check for any signs of tampering with the federal sticker or VIN plate. Ensure that all secondary VINs (typically found in locations like the engine compartment and under the dashboard) match the primary VIN on the vehicle.
- Watch Out for Unusually Low Prices or Cash Deals: If a seller is pushing for a quick sale or is offering a price that seems too good to be true, proceed with caution. Those looking to unload a stolen or re-vinned vehicle often use these tactics.
- Contact Authorities if You Suspect Re-Vinning: If any of the above red flags are present or something doesn’t feel right, avoid finalizing the deal and contact your local police or automotive theft prevention authorities.
Protecting Against Fraudulent Payments
In addition to re-vinned vehicles, another growing concern for dealerships is fraudulent payment methods. We’ve seen a noticeable rise in counterfeit cheques and fraudulent bank drafts for vehicle purchases. To safeguard your business:
- Always verify payments directly with the issuing bank before releasing the vehicle.
- Only finalize transactions within regular banking hours when verifying a cheque or draft may be difficult.
Staying Informed and Vigilant
As the tactics used by organized crime continue to evolve, both dealerships and buyers must stay informed and vigilant. These preventative measures can help reduce the risk of falling victim to re-vinned vehicle scams and ensure safer transactions for everyone involved.
For more information on how to protect your business from fraudulent activity or to discuss insurance solutions that offer added protection, contact us today – we’re here to help.
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