Dealers in Ontario are highly regulated. Because of this, the public trusts them and often chooses them over private sellers when buying vehicles. However, some bad actors take advantage of that trust.
The “Convenience Deal”
A “convenience deal” is a way dealers can be taken advantage of. In this type of deal, a customer comes to you with a vehicle they want to sell to a friend, family member, or even a stranger at an agreed price.
The consumer may want to run the vehicle through your books so they can help the buyer get financing or use a trade-in for tax savings.
The convenience deal is convenient for the seller, the buyer, but rarely the dealer. Why? Because you do not know the seller, you do not know the buyer and you know little to nothing about the vehicle. This is a recipe for disaster and it’s why these deals often go sideways fast.
What’s the Risk?
If you take in the vehicle and quickly sell it to the buyer, you take on full responsibility for that vehicle.
The seller may make claims about the vehicle’s condition, history, or past accidents. But unless a trusted mechanic inspects the vehicle, there is no way to know if those claims are true.
An even bigger concern is vehicle theft. Some thieves steal cars and change their Vehicle Identification Number (VIN), a process called “re-VINing.” They may use a real VIN from a similar vehicle to make the stolen car look legitimate.
When you run a history report, it may look normal because it’s tied to the real VIN, not the stolen car. If you sell a vehicle like this, you could be responsible for mechanical issues—or worse, for selling a stolen vehicle.
Avoiding Fraud: What You Need to Know
- Avoid Convenience Deals When Possible
Convenience deals may help others, but they put dealers at risk. The safest choice is to avoid them altogether. If you do proceed, take extra care.
- Inspect Every Vehicle and Run Reports
Reports and disclosure forms can help, but they are not enough. Always inspect the vehicle thoroughly. If someone is committing fraud, you cannot rely on their statements. Never skip this step, even if the customer is in a hurry.
Dealers do this whenever they buy vehicles, but may neglect to do so on a convenience deal. Do not do this! In fact, use extra care and vigilance on such deals.
- Run an Export Report
There is no perfect way to catch re-VINing, but an export report can help. Thieves may use VINs from vehicles that were exported out of the country.
Running a Carfax report with export data, along with an “Export Check” through the UCDA, can help flag issues. If a vehicle has been exported, it should not be in front of you for sale or trade-in.
Keep in mind, this method has limits. It only works if the thief used an exported VIN, and if that data is available. If you are unsure, contact local police (non-emergency) or Équité to inspect the vehicle for VIN tampering.
Avoid Being Duped
Avoid convenience deals when you can. If you choose to proceed, take your time and follow every step – especially if the customer is rushing you.
If something feels off, trust your instincts. You can also contact the UCDA Legal Department for advice at (416) 231-2600 or 1-800-268-2598.