How Car Yards Can Prevent Stolen or Written-Off Stock (Checklist)

For Australian car yards, the biggest threats to profitability are not slow sales or reconditioning costs.

The most damaging losses come from inadvertently purchasing stolen vehicles, rebirthed vehicles or cars with undisclosed write-off history.

 

Unlike mechanical issues, these risks cannot be repaired.

A single mistake can result in:

• total loss of buy-in cost

• forced refund to the retail customer

• investigations by police or state regulators

• insurance disputes

• potential licence implications

 

This guide provides a practical, dealership-focused checklist designed to prevent stolen or written-off stock from entering your yard.

 

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1. Why Car Yards Are Targeted by High-Risk Sellers

 

Car yards are attractive targets because:

1. they buy in volume

2. they often need quick turnarounds

3. staff may trust seller statements

4. criminals assume dealers have less time for detailed verification

5. rebirth operations test vehicles through multiple private buyers first

 

Professional dealerships reduce this risk by using structured workflows, not assumptions.

 

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2. The Essential Checklist Before Any Vehicle Is Purchased

 

Below is a practical checklist used by experienced wholesalers and multi-site dealers to avoid stolen or write-off stock.

 

This checklist focuses on identity verification, registry verification, and physical inspection — the three pillars of risk prevention.

 

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3. Identity Verification: Confirming the Seller and the Vehicle

 

3.1 Verify the seller's identity

 

Always obtain:

• full name

• address

• driver licence

• phone number

• a copy of identification

 

Dealers should match:

• licence name with registration

• seller details with ownership history

• seller address with the location of the vehicle

 

If the seller refuses identification or insists on cash-only, avoid the purchase immediately.

 

3.2 Confirm the seller is the legal owner

 

Ask for:

• registration papers

• proof of purchase

• previous sale documents

• finance discharge documentation (if applicable)

 

If the seller cannot demonstrate a clear chain of ownership, treat the vehicle as high risk.

 

3.3 Beware of "selling for a mate" scenarios

 

Car yards frequently encounter sellers claiming:

• "I'm selling on behalf of a friend"

• "The owner is overseas"

• "It's my cousin's car"

 

Dealers should reject these immediately unless the legal owner provides identification and documentation directly.

 

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4. PPSR/REVS Verification: The Only Reliable Way to Detect Stolen or Write-Off Records

 

Dealers cannot rely on:

• seller statements

• registration validity

• physical inspection

• service books

 

Only a PPSR/REVS check confirms:

• stolen status

• written-off status

• repairable write-off codes

• statutory write-off codes

• VIN and descriptor accuracy

• finance owing

 

4.1 Stolen vehicles

 

A PPSR result will display:

• "stolen" flags

• pending police reports

• recovery status (if applicable)

 

Dealers must treat any current stolen record as immediate grounds to stop the transaction.

 

4.2 Written-off vehicles

 

A written-off result will include:

• date of incident

• type of damage

• severity codes

• economic vs statutory write-off classification

 

Statutory write-offs cannot be legally registered, regardless of repair quality.

Dealers should never purchase cars with statutory write-off records for resale.

 

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5. Registration & VIN Checks: Confirming Identity Integrity

 

Dealers should conduct the following checks:

 

5.1 Plate and VIN match

 

Plate number must match:

• VIN

• make and model

• year

• body type

 

A mismatch may indicate:

• stolen plates

• rebirthed vehicles

• recent interstate transfers

• incorrect seller details

 

5.2 Check multiple VIN locations

 

Verify the VIN from:

• compliance plate

• chassis stamp

• windscreen plate

• door jamb label

 

If any VIN location shows:

• tampering

• grinding marks

• mismatched font

• rivets inconsistent with factory fittings

 

Treat as high risk.

 

5.3 Engine number

 

Check that the engine number matches registration data.

A replacement engine must be accompanied by receipts or workshop confirmation.

 

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6. Physical Indicators of Stolen or Repaired Write-Off Vehicles

 

6.1 Signs of rebirth or theft

 

Look for:

• inconsistent paint or primer under seals

• mismatched welds

• non-factory bolts around major panels

• damage around ignition or steering column

• new keys without corresponding service history

• replaced interior plastics near the dashboard

 

These often indicate theft, rebirth or VIN tampering.

 

6.2 Signs of major accident repair

 

Indicators include:

• misaligned panels

• overspray under rubber seals

• new bonnet latches

• uneven gaps around headlights

• different paint texture under sunlight

• ripples in chassis rails

 

These may confirm why a vehicle appears with a write-off record.

 

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7. Written-Off Vehicle Classes: What Dealers Need to Know

 

Dealers should understand the two major write-off categories:

 

7.1 Statutory Write-Off

• cannot be legally registered

• permanently banned from road use

• should never be purchased for resale

• only useful for parts dismantling

 

7.2 Repairable Write-Off

• can be repaired and re-registered

• resale value is significantly lower

• requires proof of repair quality

• future buyers may hesitate

• may affect dealer finance approval

 

Dealers should price repairable write-offs with caution and disclose the history clearly to retail customers.

 

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8. How to Document Verification for Compliance Protection

 

Dealers should maintain:

• PPSR certificate

• copies of seller identification

• photos of VIN locations

• photos of odometer

• photos of engine number

• trade-in appraisal form

• written confirmation of finance discharge (if any)

 

These documents protect the dealership during:

• audits

• police enquiries

• disputes with retail buyers

• insurance claims

 

Documented verification is one of the strongest defences a dealership can have.

 

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9. When Car Yards Should Reject a Vehicle Immediately

 

Dealers should reject stock immediately if:

• PPSR shows a stolen record

• VIN plates do not match

• multiple VIN locations are inconsistent

• the seller cannot prove ownership

• the car has a statutory write-off record

• the seller refuses ID

• the seller refuses PPSR checking

• the seller wants cash-only for a high-value asset

 

These scenarios indicate high fraud risk.

 

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Final AUCN Summary

 

Preventing stolen or written-off vehicles from entering a car yard requires a combination of identity checks, PPSR/REVS verification, VIN inspection and structured documentation.

 

By following a professional verification checklist, car yards can avoid:

• police investigations

• consumer law claims

• insurance disputes

• total buy-in loss

• reputation damage

 

A single rigorous process protects dealership margin far more effectively than relying on seller statements or physical inspection alone.