30+ Years of Dealership & Manufacturer Expertise - Approved Academy
30+ Years of Expert Retail Dealer Operations and Manufacturer Experience - Approved Course
10.1 Stolen Vehicles & Helpful Tips and Advice
Buying a stolen vehicle is one of the worst things that can happen to a dealer. You pay for the vehicle, invest in reconditioning, maybe even sell it to a customer — and then law enforcement shows up, seizes the vehicle, and you’re out the money. Worse, your customer is out a car, and you’re out the sale. You have no recourse against the thief, who’s long gone. This is a preventable problem, and prevention starts with diligence at the point of acquisition.
Here are the key steps you should take every time you acquire a vehicle. First, verify the Vehicle Identification Number. Physically inspect the VIN plate on the dashboard and compare it to the VIN on the title. Check the VIN on the federal safety certification label (on the driver’s door jamb). If these numbers don’t match, that’s a major red flag — the VIN plate may have been swapped from another vehicle. Look for signs of tampering: scratches around the VIN plate, rivets that don’t match the factory originals, a VIN plate that appears to have been pried up or replaced.
Second, run the VIN through NMVTIS, a vehicle history report service, and the National Insurance Crime Bureau’s VINCheck database. These databases will tell you if the vehicle has been reported stolen, if it has a salvage history, or if there are other red flags in its title history.
Third, verify the seller’s identity. Ask for government-issued photo identification and compare it to the name on the title. If the seller can’t produce ID, or if the ID doesn’t match the title, walk away. If the seller is in a rush, pressuring you to buy quickly without time for proper verification, walk away. Legitimate sellers don’t pressure you to skip due diligence.
| 💡 Real-World Example
A dealer bought a late-model truck from a private party at a price well below market value. The seller said he was going through a divorce and needed cash fast. The dealer didn’t run a vehicle history check and didn’t notice that the VIN plate rivets looked different from factory originals. Two weeks later, CHP detectives arrived at the dealership and seized the truck — it had been stolen from a dealership in Nevada, and the VIN plate had been replaced with one from a salvage vehicle. The dealer lost $28,000. A $30 vehicle history report would have revealed the discrepancy. |
Fourth, be wary of title-washed vehicles. Title washing is the practice of moving a vehicle’s title through states with less rigorous title branding rules to remove salvage, rebuilt, or flood-damage brands. A vehicle that was declared a total loss in one state might show up with a clean title from another state. NMVTIS helps detect this because it consolidates title information from all states, but it’s not perfect. Look at the title’s origin — if a vehicle has been titled in multiple states in a short period, that’s a warning sign.
Fifth, trust your instincts. If a deal feels too good to be true, it probably is. A vehicle being offered well below market value with a vague explanation is a vehicle you should investigate thoroughly before buying.