You buy a car from a private seller. Everything seems in order: the paperwork is there, the car starts well, the price is reasonable. You get it ready, put it up for sale, and three weeks later the customer calls saying the engine has a serious problem. You take it to the garage, and the mechanic confirms that the engine block has been like that for some time. You have just taken on a fault that was not yours.
Scams in the used-car market affect the whole sector, but professional motor traders face a double exposure: on the one hand, as stock buyers who may acquire vehicles with hidden problems; on the other, as sellers to whom the customer has more legal rights than they would against a private individual. Knowing the most common frauds, how to spot them and how to protect yourself is part of the job.
Contents
The most common scams when you buy a car for your stock
How to detect fraud before closing the purchase
Scams that come after the sale: the customer who complains without reason
The fraud of the seller who is not the owner
What to do if you are scammed with a used car
What documentation you need to protect yourself in each transaction
The most common scams when you buy a car for your stock
Fraud does not always come from a bad-faith seller. Sometimes the private individual selling the car does not even know it has a problem. But there are cases where the intention is clear, and knowing them helps you avoid falling for them.
Odometer tampering. It is still one of the most common frauds in the Spanish market. A car with 180,000 genuine km but the counter showing 90,000 is worth twice as much on the market. Tampering is technically straightforward and, if the history is not checked against external records, it may go unnoticed until mechanical wear gives it away.
Undeclared accidents. Many knocks, especially those not claimed through insurance, leave no trace in the standard paperwork. A well-executed body repair may not be visible at first glance, but a car with poorly repaired structural damage is a safety and value problem that you will end up paying for.
Hidden encumbrances and debts. Outstanding finance retention of title, pending seizures, or unpaid fines that do not show up at first glance. If you do not check the DGT report before closing the purchase, you may acquire a vehicle with encumbrances that later complicate the sale or change of ownership.
Falsified documentation. Altered service books, MOT certificates with tampered seals, or chassis numbers that do not match the paperwork. This last case may indicate a stolen vehicle, with all the legal consequences that entails.
Known mechanical faults not disclosed. Engine with excessive oil consumption, gearbox in poor condition, worn brake system. The seller knows about them and does not mention them. The car’s price seems reasonable, but the garage bill comes later.
There is a type of fraud that has grown strongly in recent years and also affects professional motor traders: fake adverts on portals with stolen photos from other genuine listings, designed to take a deposit and disappear. If you want to understand how it works and how to protect your business, we explain it in detail in our article on what car phishing is and how to prevent it from affecting your dealership.
How to detect fraud before closing the purchase
Most scams can be avoided with an orderly check before paying. It is not about distrusting everyone, but about having a clear protocol that you apply in every transaction.
Mechanical inspection by a trusted garage. Before closing any significant purchase, taking the car to a trusted mechanic for a pre-purchase inspection is the most profitable investment you can make. The cost of an hour in the garage is insignificant compared with a major fault you failed to detect.
DGT report. It gives you information on ownership, encumbrances, MOT, seizures and recorded accidents. It is the first filter you should apply in any transaction, without exception. From Dealcar you can check it directly from the vehicle listing, without leaving the platform.
CARFAX report. It complements DGT information with data on accidents, usage history, garage records and mileage readings at different points in time. It is especially useful for imported cars, where the history in Spanish databases may be incomplete.
CarVertical. This is another vehicle history verification tool that works from the chassis number (VIN) and cross-checks data from traffic records, insurers, garages and technical inspections in multiple countries. It is especially useful for detecting mileage inconsistencies and for checking cars that have been driven abroad before reaching the Spanish market. If you buy imported cars frequently, combining CARFAX with CarVertical significantly improves your coverage. You can see how it works in detail in our guide on what CarVertical is and how to read its report.
Warning signs in the deal. A price far below market value without a clear explanation, urgency to close the deal, reluctance to let you take the car to a garage, incomplete paperwork, or a seller who does not match the registered owner. Any of these signs deserves a pause and questions before you go any further.
Scams that come after the sale: the customer who complains without reason
Not all fraud comes from the stock buyer’s side. Sometimes the scam comes from the other side: a customer who claims a fault they caused themselves, or who tries to return a car by alleging problems that do not exist.
The most common scenario is the following: the customer buys the car, uses it for weeks or months, mistreats it or fails to carry out the maintenance it needed, and when a fault appears, calls to complain alleging that the problem existed before the sale.
The difference between a legitimate claim and an attempted scam is almost always in the documentation. If you have the signed acceptance form at handover, in which the customer acknowledges the condition of the vehicle, and if you carried out a documented pre-delivery check, you have solid arguments to respond. If you have none of that, the customer’s legal position is stronger than it should be.
Another common case: the customer demands a refund alleging a serious hidden defect when in reality the defect is minor or was caused by them. Knowing exactly what requirements a hidden defect must meet in order to be claimable helps you decide when you must respond and when you can refuse on valid grounds.
We also recommend reading our article “Hidden defects in used cars: what responsibility you have as a motor trader and how to protect yourself”.
The fraud of the seller who is not the owner
One of the most serious scams a professional motor trader can suffer is buying a car from someone who does not have the right to sell it. It happens more often than you might think, especially in private purchases through portals or in situations involving intermediaries.
The most common forms are three. The first is a sale by someone who is not the registered owner, using a forged power of attorney or simply without any authorisation. The second is the sale of a car with ongoing finance that the seller hides: the vehicle has an active retention of title and the finance company can reclaim it even though you have paid for it. The third is the sale of a stolen vehicle with falsified paperwork.
In all three cases, the antidote is the same: check the DGT report before closing the deal and verify that the seller is the registered owner or has legal authorisation to sell. If the chassis number does not match the paperwork, stop the transaction and do not go any further.
What to do if you are scammed with a used car
If, after buying a vehicle, you discover that you have been deceived, acting quickly and in an orderly way makes the difference between recovering the money and being left with the problem.
First: document everything before contacting the seller. Gather the purchase contract, the original advert if you have it, all communications with the seller, the garage report certifying the problem, and any evidence of the vehicle’s condition at the time of purchase. The more documentation you have, the stronger your position will be in whatever route you choose.
Second: communicate with the seller in writing. Before going to legal action, the recommended step is to notify the problem formally, in writing, setting out the fault and what you are claiming. A formal recorded delivery letter provides clear proof of the communication and the date. If the seller responds and offers a solution, you may resolve it without going to court. If they do not respond or refuse, you have proof that you tried to resolve it amicably.
Third: report it if the fraud is criminal. If the seller falsified documentation, knowingly tampered with the mileage, or sold you a stolen car, you are dealing with a criminal offence. You should go to a National Police, Local Police, Civil Guard or Duty Court station and file the relevant report. The sooner you do it, the better.
Fourth: civil or consumer route depending on the case. If the fraud has no clear criminal element but the seller does not accept responsibility, you can turn to consumer bodies such as OMIC or FACUA, or start legal proceedings. If the amount is low, the process may be summary and not require a solicitor. For larger amounts, specialist legal advice is the wisest option.
What documentation you need to protect yourself in each transaction
The best protection against a scam, whether buying or selling, is having the right paperwork at the right time. These are the items that should not be missing from any transaction in your motor trade.
DGT and CARFAX reports before every purchase. Not as an option, but as a fixed step in the process. If the car does not pass this filter, it is not bought. From Dealcar you can check both reports from the vehicle listing, without changing tools. If you want to know how to get the most out of these reports before buying, we explain it in detail in our guide on how to use the CARFAX and DGT reports before buying a car.
Well-drafted purchase contract. With the vehicle details, the declared condition, the agreed price and the terms of the transaction. If there are known defects, they must be set out in writing. A vague contract is a problem when a claim arrives. If you want to make sure yours is properly structured, here is a legal guide to purchase contracts for professionals.
Acceptance form at handover. The document signed by the customer acknowledging the condition of the vehicle at the exact moment of delivery. It is your main defence against later claims. If you do not use one yet, you should start today. Here is everything that the acceptance form for car sales should include.
Documented pre-purchase inspection. If you carried out a mechanical inspection before putting the car up for sale and you have the garage report, that document proves the vehicle’s condition before delivery. In the event of a dispute, it is evidence that you acted diligently. To know which points to check, you can consult our guide on what to check before buying a car to resell.
Scams in the used-car market are not going to disappear, but most are avoidable with an orderly buying process and the correct documentation in each transaction. A motor trader that checks what it buys properly and documents what it sells properly has very few unpleasant surprises.
Frequently asked questions
Can I claim if I bought a car with problems from a private seller?
Yes, but the protection is weaker than if you bought it from a professional. In a sale between private individuals, the Civil Code applies, and you will have to prove that the defect existed before the sale and that the seller knew about it. The time limit for claiming is six months from delivery. If the problem is serious and you have evidence, it is worth seeking legal advice.
How do I know if the car I am going to buy has outstanding finance?
By checking the DGT report before closing the deal. If there is an active retention of title, it will be shown. It is a step that should not be skipped in any purchase, especially when the seller is a private individual or an unknown intermediary.
What happens if I buy a stolen car without knowing it?
It is a complicated situation. The car may be seized by the police even though you paid for it, and recovering the money from the fraudulent seller can be a long process with no guarantees. The best prevention is always to verify that the chassis number matches the paperwork and to check the DGT report before buying.
Can a customer return my car simply because they do not like it?
No. Returning a vehicle requires a lack of conformity or a hidden defect that justifies it. A buyer cannot return the car because they changed their mind or found another one they prefer. If the customer has no legal basis for the claim and you have the paperwork in order, you can refuse.
Is it useful to include in the contract that the buyer waives the right to claim hidden defects?
In sales to consumers, no. Spanish courts have repeatedly declared this type of clause null and void when the seller is a professional. What you can do is reduce the warranty period to the legal minimum of one year, state known defects in the contract, and properly document the vehicle’s condition at handover.
More than 500 motor traders already use Dealcar to manage their day-to-day operations.
From checking the DGT and CARFAX reports to generating the purchase contract and the acceptance form, the whole process is recorded in one place. If you want to see how it works, you can book a free demo at dealcar.io.
You buy a car from a private seller. Everything seems in order: the paperwork is there, the car starts well, the price is reasonable. You get it ready, put it up for sale, and three weeks later the customer calls saying the engine has a serious problem. You take it to the garage, and the mechanic confirms that the engine block has been like that for some time. You have just taken on a fault that was not yours.
Scams in the used-car market affect the whole sector, but professional motor traders face a double exposure: on the one hand, as stock buyers who may acquire vehicles with hidden problems; on the other, as sellers to whom the customer has more legal rights than they would against a private individual. Knowing the most common frauds, how to spot them and how to protect yourself is part of the job.
Contents
The most common scams when you buy a car for your stock
How to detect fraud before closing the purchase
Scams that come after the sale: the customer who complains without reason
The fraud of the seller who is not the owner
What to do if you are scammed with a used car
What documentation you need to protect yourself in each transaction
The most common scams when you buy a car for your stock
Fraud does not always come from a bad-faith seller. Sometimes the private individual selling the car does not even know it has a problem. But there are cases where the intention is clear, and knowing them helps you avoid falling for them.
Odometer tampering. It is still one of the most common frauds in the Spanish market. A car with 180,000 genuine km but the counter showing 90,000 is worth twice as much on the market. Tampering is technically straightforward and, if the history is not checked against external records, it may go unnoticed until mechanical wear gives it away.
Undeclared accidents. Many knocks, especially those not claimed through insurance, leave no trace in the standard paperwork. A well-executed body repair may not be visible at first glance, but a car with poorly repaired structural damage is a safety and value problem that you will end up paying for.
Hidden encumbrances and debts. Outstanding finance retention of title, pending seizures, or unpaid fines that do not show up at first glance. If you do not check the DGT report before closing the purchase, you may acquire a vehicle with encumbrances that later complicate the sale or change of ownership.
Falsified documentation. Altered service books, MOT certificates with tampered seals, or chassis numbers that do not match the paperwork. This last case may indicate a stolen vehicle, with all the legal consequences that entails.
Known mechanical faults not disclosed. Engine with excessive oil consumption, gearbox in poor condition, worn brake system. The seller knows about them and does not mention them. The car’s price seems reasonable, but the garage bill comes later.
There is a type of fraud that has grown strongly in recent years and also affects professional motor traders: fake adverts on portals with stolen photos from other genuine listings, designed to take a deposit and disappear. If you want to understand how it works and how to protect your business, we explain it in detail in our article on what car phishing is and how to prevent it from affecting your dealership.
How to detect fraud before closing the purchase
Most scams can be avoided with an orderly check before paying. It is not about distrusting everyone, but about having a clear protocol that you apply in every transaction.
Mechanical inspection by a trusted garage. Before closing any significant purchase, taking the car to a trusted mechanic for a pre-purchase inspection is the most profitable investment you can make. The cost of an hour in the garage is insignificant compared with a major fault you failed to detect.
DGT report. It gives you information on ownership, encumbrances, MOT, seizures and recorded accidents. It is the first filter you should apply in any transaction, without exception. From Dealcar you can check it directly from the vehicle listing, without leaving the platform.
CARFAX report. It complements DGT information with data on accidents, usage history, garage records and mileage readings at different points in time. It is especially useful for imported cars, where the history in Spanish databases may be incomplete.
CarVertical. This is another vehicle history verification tool that works from the chassis number (VIN) and cross-checks data from traffic records, insurers, garages and technical inspections in multiple countries. It is especially useful for detecting mileage inconsistencies and for checking cars that have been driven abroad before reaching the Spanish market. If you buy imported cars frequently, combining CARFAX with CarVertical significantly improves your coverage. You can see how it works in detail in our guide on what CarVertical is and how to read its report.
Warning signs in the deal. A price far below market value without a clear explanation, urgency to close the deal, reluctance to let you take the car to a garage, incomplete paperwork, or a seller who does not match the registered owner. Any of these signs deserves a pause and questions before you go any further.
Scams that come after the sale: the customer who complains without reason
Not all fraud comes from the stock buyer’s side. Sometimes the scam comes from the other side: a customer who claims a fault they caused themselves, or who tries to return a car by alleging problems that do not exist.
The most common scenario is the following: the customer buys the car, uses it for weeks or months, mistreats it or fails to carry out the maintenance it needed, and when a fault appears, calls to complain alleging that the problem existed before the sale.
The difference between a legitimate claim and an attempted scam is almost always in the documentation. If you have the signed acceptance form at handover, in which the customer acknowledges the condition of the vehicle, and if you carried out a documented pre-delivery check, you have solid arguments to respond. If you have none of that, the customer’s legal position is stronger than it should be.
Another common case: the customer demands a refund alleging a serious hidden defect when in reality the defect is minor or was caused by them. Knowing exactly what requirements a hidden defect must meet in order to be claimable helps you decide when you must respond and when you can refuse on valid grounds.
We also recommend reading our article “Hidden defects in used cars: what responsibility you have as a motor trader and how to protect yourself”.
The fraud of the seller who is not the owner
One of the most serious scams a professional motor trader can suffer is buying a car from someone who does not have the right to sell it. It happens more often than you might think, especially in private purchases through portals or in situations involving intermediaries.
The most common forms are three. The first is a sale by someone who is not the registered owner, using a forged power of attorney or simply without any authorisation. The second is the sale of a car with ongoing finance that the seller hides: the vehicle has an active retention of title and the finance company can reclaim it even though you have paid for it. The third is the sale of a stolen vehicle with falsified paperwork.
In all three cases, the antidote is the same: check the DGT report before closing the deal and verify that the seller is the registered owner or has legal authorisation to sell. If the chassis number does not match the paperwork, stop the transaction and do not go any further.
What to do if you are scammed with a used car
If, after buying a vehicle, you discover that you have been deceived, acting quickly and in an orderly way makes the difference between recovering the money and being left with the problem.
First: document everything before contacting the seller. Gather the purchase contract, the original advert if you have it, all communications with the seller, the garage report certifying the problem, and any evidence of the vehicle’s condition at the time of purchase. The more documentation you have, the stronger your position will be in whatever route you choose.
Second: communicate with the seller in writing. Before going to legal action, the recommended step is to notify the problem formally, in writing, setting out the fault and what you are claiming. A formal recorded delivery letter provides clear proof of the communication and the date. If the seller responds and offers a solution, you may resolve it without going to court. If they do not respond or refuse, you have proof that you tried to resolve it amicably.
Third: report it if the fraud is criminal. If the seller falsified documentation, knowingly tampered with the mileage, or sold you a stolen car, you are dealing with a criminal offence. You should go to a National Police, Local Police, Civil Guard or Duty Court station and file the relevant report. The sooner you do it, the better.
Fourth: civil or consumer route depending on the case. If the fraud has no clear criminal element but the seller does not accept responsibility, you can turn to consumer bodies such as OMIC or FACUA, or start legal proceedings. If the amount is low, the process may be summary and not require a solicitor. For larger amounts, specialist legal advice is the wisest option.
What documentation you need to protect yourself in each transaction
The best protection against a scam, whether buying or selling, is having the right paperwork at the right time. These are the items that should not be missing from any transaction in your motor trade.
DGT and CARFAX reports before every purchase. Not as an option, but as a fixed step in the process. If the car does not pass this filter, it is not bought. From Dealcar you can check both reports from the vehicle listing, without changing tools. If you want to know how to get the most out of these reports before buying, we explain it in detail in our guide on how to use the CARFAX and DGT reports before buying a car.
Well-drafted purchase contract. With the vehicle details, the declared condition, the agreed price and the terms of the transaction. If there are known defects, they must be set out in writing. A vague contract is a problem when a claim arrives. If you want to make sure yours is properly structured, here is a legal guide to purchase contracts for professionals.
Acceptance form at handover. The document signed by the customer acknowledging the condition of the vehicle at the exact moment of delivery. It is your main defence against later claims. If you do not use one yet, you should start today. Here is everything that the acceptance form for car sales should include.
Documented pre-purchase inspection. If you carried out a mechanical inspection before putting the car up for sale and you have the garage report, that document proves the vehicle’s condition before delivery. In the event of a dispute, it is evidence that you acted diligently. To know which points to check, you can consult our guide on what to check before buying a car to resell.
Scams in the used-car market are not going to disappear, but most are avoidable with an orderly buying process and the correct documentation in each transaction. A motor trader that checks what it buys properly and documents what it sells properly has very few unpleasant surprises.
Frequently asked questions
Can I claim if I bought a car with problems from a private seller?
Yes, but the protection is weaker than if you bought it from a professional. In a sale between private individuals, the Civil Code applies, and you will have to prove that the defect existed before the sale and that the seller knew about it. The time limit for claiming is six months from delivery. If the problem is serious and you have evidence, it is worth seeking legal advice.
How do I know if the car I am going to buy has outstanding finance?
By checking the DGT report before closing the deal. If there is an active retention of title, it will be shown. It is a step that should not be skipped in any purchase, especially when the seller is a private individual or an unknown intermediary.
What happens if I buy a stolen car without knowing it?
It is a complicated situation. The car may be seized by the police even though you paid for it, and recovering the money from the fraudulent seller can be a long process with no guarantees. The best prevention is always to verify that the chassis number matches the paperwork and to check the DGT report before buying.
Can a customer return my car simply because they do not like it?
No. Returning a vehicle requires a lack of conformity or a hidden defect that justifies it. A buyer cannot return the car because they changed their mind or found another one they prefer. If the customer has no legal basis for the claim and you have the paperwork in order, you can refuse.
Is it useful to include in the contract that the buyer waives the right to claim hidden defects?
In sales to consumers, no. Spanish courts have repeatedly declared this type of clause null and void when the seller is a professional. What you can do is reduce the warranty period to the legal minimum of one year, state known defects in the contract, and properly document the vehicle’s condition at handover.
More than 500 motor traders already use Dealcar to manage their day-to-day operations.
From checking the DGT and CARFAX reports to generating the purchase contract and the acceptance form, the whole process is recorded in one place. If you want to see how it works, you can book a free demo at dealcar.io.
