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Warning over used car scam as US write-offs resold for 50,000 euros in Europe

Prosecutors estimate that a network operating through Lithuania alone generated more than 144 million euros in illicit revenue while exposing motorists to potentially dangerous vehicles

A stock photo showing second-hand cars for sale.

EP

More than 220,000 vehicles declared a total loss by insurers in the United States were exported to Europe in 2024 and later sold at ... high prices after being repaired, according to new findings highlighting the scale of cross-border fraud linked to organised crime groups.

International investigations have uncovered how criminal networks have introduced thousands of severely damaged vehicles, mainly from the United States, into the European market before reselling them as apparently roadworthy used cars.

Authorities warn that the trade poses a significant risk to road safety, with some vehicles allegedly returning to the road despite serious structural damage, missing airbags or tampered safety systems.

According to figures released by the European Public Prosecutor's Office, at least 16,500 vehicles entered the European market through Lithuania alone, generating more than 144 million euros in illicit revenue.

The associated tax losses are estimated at no less than 31 million euros, excluding the potential costs of future repairs, accidents and other material damage linked to the vehicles. Prosecutors said the activity has resulted in substantial losses for both consumers and public authorities.

Massive profits

One example cited in the investigation involved a heavily damaged sports car purchased at auction for around 10,000 euros, which was later resold for 50,000 euros after restoration.

Investigators noted that the less money spent on repairs, the greater the potential profit margin, often at the expense of the safety of vehicle occupants and other road users.

The findings are highlighted in a new report by Carfax, a private provider of vehicle history reports in Spain and across Europe. The report warns that buying a second-hand car without checking its history can conceal far more than routine wear and tear.

Investigations have documented cases in which vehicles with altered safety systems, missing airbags and serious structural defects were sold to buyers unaware of their true condition and history.

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Warning over used car scam as US write-offs resold for 50,000 euros in Europe

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Warning over used car scam as US write-offs resold for 50,000 euros in Europe