Warning about unauthorized car dealers

Police and insurance companies are cautioning consumers against buying cars from unauthorized dealers. They say the money saved isn’t worth risking your life, and livelihood.

Two luxury cars, between them weighing roughly six tonnes and originally valued at well over $100,000 were squished in a matter of minutes today to make sure they don’t make it to the black market.

“They’re almost frankenstein cars. They’re made up of parts of various other cars,” says Carey Smith of Ontario Motor Vehicle Industry Council.

Four years ago, they were about to be sold to unsuspecting consumers through an organized crime ring. But police identified them as stolen after a random traffic stop.

“Which led to the recovery of I believe it was 5 motor vehicles that had, like these ones, been put together with stolen parts,” says Suzanne Redman of Toronto Police.

When they were recovered, they looked pristine, but to a trained eye, they were dangerous.

The VIN, or vehicle identification number, on one car was swapped out after it was stolen, essentially erasing the SUV’s entire history from a potential buyer.

A false VIN replaces a car’s history with that of another hiding important information about the vehicle’s background and safety.

Experts say buying a car from an unauthorized dealer puts your life at risk and your pocketbook too.

“They’re completely unprotected. So if they buy a vehicle and it turns out to be stolen, police will seize it out of the driveway and the consumer ends up holding on to nothing,” says Smith.

Most stolen vehicles technically belong to an insurance brokerage when they’re recovered. Even if you didn’t know you were buying a “hot” car, you could lose your entire investment.

“Most often the consumer is completely unaware of the history of the vehicle, and resulting in significant financial loss. You can imagine what that impact on a household would be,” says Javier Ibanez of VP Economical Insurance.