Instances of used car fraud are becoming more and more common every single day and it can all be avoided much easier by being aware of danger and knowing how to spot them. Most of these instances come up when looking to buy a used car with bad credit. You may think that you are not going to get caught up in this kind of trouble, but you would be surprised with exactly how many people fall victim to this every year and it is all little tricks that will create this issues as well.

Every year people fall prey to this from all kinds of backgrounds whether they be from a credit point or a financial aspect. It is true though that those with a poor credit background tend to have a better chance of falling for this, just because of the excitement of finding a "great" deal. It happens to the best of us and with the allure of the low price of used cars anyone is usually willing to take the risk of quality with their purchase. Most of these cars are also sold "as is" and thus will not fall under potential state laws.

Title Washing Dangers

Some of the largest dangers will be with the title. This is one of the dirtiest tricks that will get a lot of people. The most common way that this happens will be through what is known as title washing. This will be where the seller shows you a nice, clean, and pretty title that will give the impression that the vehicle is in the clear. Usually this will be done by taking to the car to another state and having the branded title (such as flood damaged, stolen, etc.) removed.

This obviously very well can create many issues for anyone looking for loans for people with very bad credit. If you are a car buyer it is likely that there could be a dealer out there trying to pull this trick on you. Not all dealers will be this way obviously, but just keep a close eye out and know how to spot dangers and take the proper precautions when looking to purchase.

How to Avoid the Dangers

There are a few easy ways that you can dodge the bullet and here they are.

1. Go to www.nicb.org and check the vehicle's history using VINCheck (be sure to copy the VIN number from the vehicle's VIN plate)
2. Order a vehicle history report from either Carfax or AutoCheck.
3. If the vehicle passes the history report test which shows that it%u2019s clean, have it inspected by an ASE Certified Master Mechanic as well as a body and frame expert before making a buying decision.

Once you have found a vehicle or if you are just getting prepared make sure that you have financing. We can help you out with that, but if not we hope that the information here at FundingWay.com has been useful!