Used car shock – data shows almost 5,000 dodgy cars sold every week

Sydney, Australia, 20 January 2014: Vulnerable buyers warned as January is peak buying time. As the used car buying season hit its annual peak in January, Veda’s vehicle history site CarHistory.com.au has warned ‘buyer beware’, especially for eager young purchasers investing in their first car in time for the start of uni or a new job.
 
Of the 2.5 million used cars sold in Australia each year, more than 250,0001 – almost 5,000 each week – have either been written-off or flood damaged (92%), stolen (2%) or had their odometers wound back (6%), analysis of 12 months of CarHistory data shows. 
 
Head of CarHistory.com.au, David Scognamiglio, said that with each dodgy car costing the unsuspecting purchaser on average $4,400, consumers need to be extra vigilant.
 
“January is a time where we see the greatest instances of fraud. Each incident costs an average of $4,400 which, for a third of buyers, is almost half the cost of what they’ve paid for the car. If the car’s previously been stolen, you lose the money you paid as well as the car – that’s a really expensive exercise.
 
“Not only can purchasing a dodgy vehicle be costly, it can be dangerous.  A car that has been written-off has previously been damaged and may have ongoing mechanical and safety issues; and any vehicle with its odometer wound back will not carry the manufacturer’s warranty. In both cases, the vehicle may be much more worn out than it appears, plus you’ve been ripped off,” David said.
 
In an Australian first, used car buyers who purchase a CarHistory report will now automatically receive the extra safeguard of Vehicle Buyback Insurance.  Should the information CarHistory provides be incorrect, and the vehicle is subsequently found to have been stolen, encumbered with finance or have been written-off, CarHistory will reimburse the customer for their financial loss2.  
 
“No one wants to buy a car only to find out that they’ve been scammed, so buyers need to take steps to protect themselves,” David said. 
 
“The best way to protect yourself from getting ripped off is to get an independent inspection by a mechanic, and get a CarHistory.com.au report3. A CarHistory report is the only report that covers odometer readings from trusted sources as well as a range of other issues common to bad car deals, including repairable write-offs and stolen vehicle status.” 
 
The Dodgy Files:
 
• 92% Written-off – deemed uneconomical to repair by an insurance company
• 6% Odometer wind back – an illegal process of rolling back an odometer to lower kilometres  
• 2% Previously been reported as stolen
 
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1 Based on vehicles checked on CarHistory.com.au over a 12 month period until April 2013
2 To a maximum of $25,000 for a period of three months from the date the CarHistory Report was purchased
3 A CarHistory.com.au report can include: stolen vehicle status, any flood or storm damage, odometer readings, previous sales listings, the estimated current car valuation, whether the car has been a repairable write-off, written-off status, safety rating, insurance claims and any outstanding finance status (PPSR Certificate).
 
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About the research
The used vehicle market research was conducted by CarHistory via an online survey using the Nine Rewards panel. Consumers aged 16 years and older were selected from a nationally representative sample of consumers based on state, age and gender who had recently purchased a used vehicle in the past 12 months or intended to purchase in the next 12 months. The fieldwork was undertaken between 3-11 April 2013.  A total of 1,019 surveys were completed.