Top Road Scams in India and How to Avoid Them?

Common Scams While Buying a Car

Listed below are the common scams that you may encounter at the time of purchasing a new car:

1. Odometer Tampering in Used Cars

Odometer tampering is a common trick where sellers reduce the mileage to make a car look less used. This makes the car appear newer and more valuable, allowing the seller to charge a higher price. They may also clean and polish the car to hide signs of heavy use, making it harder for buyers to notice the scam.

How to Avoid?

Check service records for mileage consistency and look for wear on pedals, seats, and the steering wheel. When in doubt, get the car inspected by a trusted mechanic before buying.

2. Overcharging for Road Tax, Insurance, and Hidden Fees

Dealers may increase the selling price of the car by including unnecessary costs such as handling or logistics charges, or overcharging for road tax and insurance. Buyers often assume these costs are standard and end up paying more than required.

How to Avoid?

Ask for a detailed cost breakdown and verify charges online. Road tax is fixed by the Government, and you are free to choose your own insurance provider. So, do not feel pressured to accept the dealer's option.

3. Fake Insurance Policies

In this scam, buyers are given a cover note instead of a valid car insurance policy. Later, they discover that the policy was never issued, leaving them unprotected and unable to make claims.

How to Avoid?

Go to the insurance company website and check the validity of your policy. Ensure you receive the full policy document and confirm the policy number immediately after purchase.

4. Advance Payment Frauds

There is a common tactic whereby the seller may ask for an advance fee to reserve the car before delivering it to the customer. Often, such deals involve urgent actions to entice customers into making immediate decisions.

How to Avoid?

Avoid paying large advances, especially to unknown sellers. Always verify the dealer, perform a thorough pre-delivery inspection (PDI) of the car in person, and use secure payment methods with proper documentation.

Scams Involved While Driving on the Road

Here are a few common scams faced while driving on Indian roads:

1. Fake Traffic Police Scam

Recently imposters pose as traffic police officers and stop vehicles to demand fines in cash. They often avoid issuing a proper challan and may try to pressure drivers into paying on the spot, especially in less crowded areas.

How to Avoid?

Always ask for official identification and ensure that they provide you with a formal e-challan. With the e-challan system, you can always ask the authorities to issue a challan and pay it online using valid government websites like the Parivahan Sewa.

2. Deliberate Minor Accident Scam

Scammers may intentionally cause a small collision and then demand immediate cash compensation. They often use aggressive behaviour or intimidation to make drivers panic and settle the matter quickly.

How to Avoid?

Stay calm and avoid arguments. Do not pay on the spot. Call local authorities if needed and let your car insurance company handle any genuine claims.

3. Distraction and Theft

At traffic signals or crowded places, scammers may distract you by pointing out a fake problem, like a flat tyre or leaking fluid. While you are distracted, they may steal your belongings from the car.

How to Avoid?

It is wise to lock your doors and keep your windows rolled up when driving. Only step out of your vehicle when necessary and remain alert at all times. If someone points out a problem, try not to panic and get out of your car immediately. Find a safe place to do so and check your car properly.

4. Overcharging at Toll Plazas

There may be instances when some toll plazas charge more than the actual toll or tell you that your FASTag is not functioning, forcing you to pay in cash.

How to Avoid?

Check the official toll rates in advance and ensure your FASTag is active and has sufficient balance. If overcharged, ask for a receipt and report the issue to the toll authority.

Scams Involved During the Service or Repair of Your Car

Take a look at the scams below that you must be aware of when taking your car for service or repair:

1. Unnecessary Repairs and Part Replacement

One of the most common issues car owners face is being told that certain parts need immediate replacement, even when they are still functioning perfectly. This usually happens because many vehicle owners are not technically familiar with how each component works.

How to Avoid?

Always ask the mechanic to clearly explain what is wrong and why the replacement is necessary. If possible, request an inspection of the worn-out part yourself. If the estimate feels too high or unnecessary, do not hesitate to get a second opinion from another service centre.

2. Use of Duplicate or Low-Quality Spare Parts

Another common car scam is the use of counterfeit or low-quality spare parts. In such cases, you may be charged for genuine components, but affordable and low-quality alternatives are installed, which may hamper your vehicle's performance. These parts may look similar on the outside, but they often wear out faster.

How to Avoid?

Make it a habit to request original, branded parts and to check their packaging before installation. It is also safer to rely on authorised service centres.

3. Inflated Service Bills

Inflated billing is a subtle but common practice in many workshops. You might notice vague descriptions such as 'general service,' 'miscellaneous charges,' or 'unexplained labour costs' added to your invoice. These small additions can quickly add up, leaving you paying far more than necessary.

How to Avoid?

Always take a few minutes to review the invoice carefully before making payment. If something seems unclear or overpriced, ask for clarification and avoid any road scams.

Scams Involved While Selling the Car

You may come across the following scams while selling your car to another person:

1. Payment Fraud

One of the most common scams during car sales involves fake payments. A buyer may show you a screenshot of a bank transfer or a payment confirmation message that looks genuine at first glance. In some cases, they may even provide a cheque as proof of payment. However, either the transfer never actually happened, or the cheque bounced due to insufficient funds.

How to Avoid?

The safest approach to avoid payment fraud is to rely only on confirmed payments and trusted gateways. Always check your bank account personally to verify that the money has been credited before handing over the vehicle or signing any ownership documents.

2. RC Transfer Delays or Non-Transfer

After selling a car, many sellers assume their responsibility has ended once they receive the payment. However, this is where another common issue arises. Buyers frequently wait too long or refuse to change the owner name on the Registration Certificate (RC). If the RC is not transferred, the vehicle is still legally registered under the old owner. Any traffic violations, accidents or criminal activities that occur with that vehicle will create legal problems for the seller.

How to Avoid?

Make sure the RC transfer process is completed immediately after the sale. Submit all required documents to the Regional Transport Office (RTO) without delay. You can also track the transfer status online to ensure the ownership has officially changed.

3. Identify Fraud by Buyers

In some cases, fraudsters use fake identities to purchase vehicles. They may present forged ID proofs or provide incorrect contact details. Once the deal is done, they disappear, making it nearly impossible to trace them if any issue arises later.

How to Avoid?

You must always verify the buyer's identity thoroughly before proceeding with the sale. Ask for original ID and address proof, such as an Aadhaar card, driving licence, or passport, and cross-check the details carefully.