Vehicle Fraud Haunts Used Car Buyers

SYDNEY – Aug 16, 2010: A study by consumer vehicle research site, Carhistory.com.au, indicates vehicle fraud in Australia is becoming increasingly expensive, with the average financial impact of a fraudulent purchase rising by $1000 in six months.

The average incident of vehicle fraud costs Australian used car buyers $4,117 per fraudulent event, a figure which has skyrocketed from six months ago when the average cost was $3,128 per incident.

Carhistory.com.au research found 5% of adult Australians surveyed said they, or their family members, have been affected by vehicle fraud in the last year.

The research found that of those affected by vehicle fraud, 68% purchased from a private seller and 32% from a certified dealer.

Search results on Carhistory.com.au reveal an average of 13% of car history checks identify negative information, such as the car in question being previously written-off, stolen or damaged.

David Scognamiglio, Head of Carhistory.com.au, said the cost of vehicle fraud is increasing, but car buyers have the opportunity to protect themselves against dishonest deals.

“Our surveys show that 70% of Australians what to know more about a vehicles history, however less than 30% actually know where to go to find the information. When people do check a vehicles history at www.carhistory.com.au our data reveals that 13% of searches disclose that the car has been written-off or is registered as stolen.”

“With legislation slated to be introduced in NSW in October banning the re-registration of all repairable write-offs, knowing the vehicles history in all Australian States becomes critical.”