I was about to buy a secondhand car that belonged to a family friend, but the dealer didn’t want me to drive it because he said it would be dangerous to the owner.
I was surprised to hear that even though I had paid thousands of dollars for the car, it was still unsafe for the owner to drive the car in the wild.
The car dealer told me it was his car and that he couldn’t give it back to me because it was owned by someone else.
I have to say, the experience made me question my beliefs about cars.
I still feel that way, but I have been thinking about why that is.
Read moreRead moreCar dealers can be a big target for fraud, but we know what’s really happening when we look at the numbers, says CarAdvice.
A study of over 4,000 car dealerships in the United States found that only about 1% of them have taken any enforcement action against fraud, according to a study published in Consumer Reports in November.
I think the biggest issue in the industry right now is the level of fraud, says Robert Pendergast, director of research at the National Association of Insurance Commissioners.
They’re just not as focused as they could be.
That means you can have a car that you buy for $1,000, and then you drive it around for a year and buy another car, and drive that one around for six years, and the insurance company doesn’t think that’s a good deal.
There are a lot of people out there that have bought a second- hand car for $800, and they say, ‘Well, I’m going to use that car for work, so I can get the same level of coverage as the original owner.’
That doesn’t make sense.
Car dealers also have a long history of providing discounts to customers who drive cars for them.
In 2008, for example, Chevrolet offered a $10 discount to people who drove their cars on their dealerships.
But a lot more of the time, it’s the dealership who is doing it, says Penderglast.
He adds that fraud is not limited to dealerships, but that is a problem for the general car market as well.
The industry has to be careful that it’s not putting too much pressure on the dealer, says Peter Reeds, vice president of research and analysis at auto insurance broker Aon Hewitt.
The number of car owners who are buying second-handed is growing, and there’s an increase in the number of people who are driving their own cars, says Reeds.
But he cautions that many people are buying the car for someone else, and that can lead to problems later on.
It can be difficult to differentiate between the two, he says.
The same people buying a second hand car can have an accident and get seriously injured, and may not get the insurance for it.
It’s important that the insurance companies and dealers be aware of this, and be very careful about who they’re purchasing second hand, he adds.
As a consumer, I don’t have the same concerns as a consumer with a vehicle that they bought a year ago.
But I do have concerns about what is being advertised, says John Kappen, president of the National Consumer Law Center.
So, what are your concerns about second-heavily-used cars?
Tell us in the comments below.