Buying and selling a used car on the internet is more seamless and simple than ever. Companies like Vroom (VRM) -) and Carvana allow customers to fill out and e-sign some forms from the comfort of their own computers and take delivery of their new-to-them ride, or bid farewell to their trusted machines, within the same week.
Though they advertise a simple process, such a process might be too simple. In fact, it might be simple enough for criminal elements to take advantage of.
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An Atlanta man by the name of Anthony Williams bought a Ram 1500 Big Horn pickup truck from Carvana (CVNA) -) in August 2022, only to have the car repossessed by the police a year later on the grounds that it was a stolen car.
Williams told his local ABC affiliate WSB-TV that he was puzzled by the discovery, especially since he went through a seemingly legitimate process to purchase the car.
“I had a Carfax on the vehicle. It went through titling. I had my tag,” Williams told WSB-TV.
The Georgia Department of Revenue told the local ABC affiliate that in the case of Williams’ Ram 1500, there was no way for the tag office to spot the fraud. The thieves who initially stole the truck used a real vehicle identification number (VIN) and a real title number belonging to another similar Ram, along with other forged documents.
In their report, investigators found discrepancies in the documents, including the font and wording used. In addition, when the police and Williams looked closer at the truck, they noticed that two different VIN numbers were on the dashboard, but the real one was under the hood.
Williams told local news reporters that the ordeal in itself was embarrassing, since it all played out in front of his neighbors.
“The neighbors are looking at me like, 'okay, what’s going on over there? Did he get his vehicle repossessed? Is he doing some illegal activity?' So, it was it was pretty horrible for me,” Williams said.
What prompted investigators was a huge mistake on the vehicle’s Carfax. On the same day that Carvana listed Williams’ Ram for sale, the vehicle whose identity it assumed was being serviced in Florida. In addition, the reported mileage of both cars that day were also different.
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Williams’ turned to the WSB-TV investigative team after he spent a month trying to get a refund back from Carvana. The company gave Williams’ his money back and also issued a statement saying that these instances are rare.
“In this unusual case, Carvana and our customer were victims of a sophisticated criminal act. Customer experience is our top priority, and we are taking steps to make it right in this rare instance while staying aggressive in our efforts to protect future customers against bad actors.”
This is not the first time Carvana has sold a stolen car. In March 2023, an Army veteran by the name of Jason Scott purchased a used Maserati Levante as a gift for his wife until he found out it was stolen. He is suing Carvana for $1 million in damages and an apology by the company.
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