The $100m Used Car Scam
One of the most common Used Car Scams is odometer fraud.
Odometer fraud costed aussies $100m in 2025 and Carify found a staggering 1 in 6 used cars in Australia showed signs of tampering (!)
What’s odometer fraud?
When a seller “unwinds” back the odometer so that it shows fewer kms.
Cars wear out over time and the odometer shows a car’s condition. Fewer kms = higher price.
A Mazda 3 with 200,000kms may sell for $12.5k on carsales. But if the odometer is rolled back to 50,000kms, a dodgy seller can get $20k+ for the same car.
What happens if you buy a car with odometer fraud?
There are 3 main issues:
Engine and transmission wear out. This is a major job and is expensive, costing $4k-$11k. They need to be replaced at 150,000 km - 400,000 km.
Suspension can wear out. Driving will be more bumpy and less safe. They need to be replaced at 100,000-150,000 km and costs $1k-$3k.
A questionable maintenance history. Possibly years of skipped services, fluids, and repairs. Skipped maintenance = expensive breakdowns.
How to avoid odometer fraud
Earlier this year, I inspected a Mazda 3 with odometer fraud. The car had 80,000km and was priced $3.5k under market value.
But there were 6 red flags which tipped it off:
The seller didn’t buy the car to use it. Long-term ownership generally means a legitimate sale.
Warm engine which hides cold start issues.
The last three odometer records was within 3 months. Records are logged during pink slip checks, you should expect a reading every 6–12 months.
Driver touchpoints (pedals, steering wheel, shifter) were heavily worn.
No service history
Clutch felt “sticky” during test drive
Unfortunately when a car feels too good to be true, it often is. If you feel hesitant, it’s always safer to walk away.
Scams often happen under the pressure of “missing out on a deal”. Don’t believe that feeling - there’s always going to be great listings from honest sellers.
Stay Safe,
Roger
Buyer’s Agent
P.S. If you want to avoid the other 3 common buying mistakes, book a free 30-minute Bulletproof Car Consultation and I’ll go through everything you need to know to buy a reliable car.
