As spring arrives, many Canadians will be looking to buy used cars.

But, Carfax Canada warns, they also need to look out.

Used car scams such as re-vinning and odometer rollbacks create serious risks for Canadians, the vehicle history report provider said in a news release.

“Criminals can be extremely sophisticated,” Carfax Canada president Shawn Vording said, “and while most car sellers are honest, fraud can still happen. Even one overlooked detail could lead to major financial and legal consequences.”

Carfax Canada spelled out he most common used-car scams consumers and dealers should watch for.

VIN cloning or re-vinning: A form of auto fraud in which a vehicle’s VIN is illegally copied or “cloned” onto another vehicle to cover its identity. In many cases, cloned VINs are used to conceal and re-sell a stolen vehicle, and if you buy one, it could be seized by authorities. VIN fraud technology is available to help Canadians protect themselves.

Odometer fraud/rollback: Odometer fraud, in which a vehicle’s mileage is illegally reduced to inflate its value, is a serious and growing concern for car buyers in Canada’s used-car market, Carfax Canada said. The company said it detected 20,642 vehicles with potentially rolled back odometers in 2025, flagged through vehicle history reports.

Carfax said reviewing the pattern of odometer readings on vehicle history reports can help detect fraud. Additionally, the company recommended car buyers should have a licensed mechanic inspect the vehicle for signs of tampering and verify that the wear and tear matches the odometer reading.

In addition to fraud, Carfax Canada noted other types of undisclosed vehicle history that can lead to serious problems.

Hidden accidents or damage: A vehicle’s accident or damage history does not necessarily disqualify it from purchase. The critical factor, Carfax said, is knowing about any previous damage so buyers can confirm it has been repaired properly. Undisclosed damage can pose significant safety risks and lead to costly repairs, reduced resale value, insurance issues and mechanical failures.

Undisclosed salvage and rebuilt branding or title washing: Purchasing a salvage or rebuilt vehicle can offer significant discounts to car buyers — but it can mean big problems in the future.

A “rebuilt” vehicle was previously declared a total loss by insurance and was repaired, inspected and deemed roadworthy.

A “salvage” or “totaled” vehicle cannot be driven or registered for road use in Canada — it’s unsafe and illegal to drive — until all necessary repairs pass structural safety inspection.

A vehicle can be branded as “non-repairable” if an inspection determines the vehicle cannot be repaired as required.

Criminals can move salvaged vehicles across the country to hide their history and re-sell them with fake documentation or a clean title, a practice known as title washing. Unknowingly buying a rebuilt or salvage vehicle can seem a good deal but can quickly turn into long-term financial, legal and insurance headaches.

Undisclosed liens: In the past year, Carfax Canada said its data showed 40% of vehicles checked had outstanding debt. While liens are common, buyers can become responsible for the debt if they unknowingly purchase a vehicle with a lien.

If a lien is not paid off before transferring ownership, the lender can repossess the vehicle, leaving the buyer on the hook for paying off the money owing on the vehicle.

To help avoid used-car scams, Carfax Canada recommended:

  • Beware of unlicensed individuals (curbsiders) who sell cars illegally and might misrepresent the real condition of the car, turn back the odometer or hide major issues.

 

  • Educate yourself on what to look out for when buying a used car from a private seller or finding deals online, and always confirm the seller’s identity.

 

  • If the deal seems too good to be true, do your research and trust your gut.

 

  • Always get a licensed mechanic to inspect the vehicle and take it for a proper test drive.

 

  • Do not leave a deposit or pay in full for the vehicle using suspicious links or apps.

 

  • Check a vehicle history report.