Avoid used car scams

St. Petersburg, Florida - In this economy, new car sales are down about 40 percent and more people are turning to used car sales.

But buyer beware.

A recent auto industry summit found used car scams are a "serious and growing problem" in this economy.

This year, the Fraud Abatement through Industry Response held their first summit in Los Angeles and identified several used car scams, including those that sell "phantom vehicles" from locations in eastern Europe, Russia and Africa.

Recently, the Better Business Bureau warned of a used car scam that uses VIN cloning.  The seller acquires a stolen car, changes the VIN number and sells it to an unsuspecting buyer.  When police track down the stolen car, they give it back to the rightful owner, leaving the new owner without a car and without any way of getting their money back.

Mark Watson founded Tampa-based AREN Auto Consultants to help people avoid car scams and find the lowest price on new and used cars. 

For $100 to $600, Watson acts as a negotiator on his client's behalf.  He spends an average of seven to 10 hours researching a car's price on the internet and haggling at different car dealerships.

"[We don't] have a relationship with any particular dealership or make, model or brand.  That aligns our interests with the clients and ensures that we don't steer clients to a particular dealership," he said.

Watsons says he saves clients an average of $3,500 per used vehicle he negotiates on, and between $1,800 and $2,200 on new vehicles.

Before buying a used car, the Better Business Bureau suggests checking the vehicle history report and steering clear of rebuilt titles, damage disclosures and people who sell cars from vacant lots of the side of the road.