How to make sure that the car you're buying is not stolen?
By: Aya Alhakim on March 19, 2025
Updated: March 2026
Quick takeaways:
- Verify the Vehicle Identification Number (VIN): Check the VIN in multiple locations on the car and ensure it matches the paperwork. Use tools like a free decoder or the Canadian Police Information Centre (CPIC) database to confirm the car’s legitimacy.
- Request proper documentation: Always ask for the original vehicle registration, verify the seller’s identification, and obtain a vehicle history report to avoid buying a cloned or stolen car.
- Watch for red flags: Be cautious of deals that seem too good to be true, cash-only payments, odometer tampering, or mismatched details. These are signs of potential fraud or theft.
Buying a used car in Canada comes with risks, including unknowingly purchasing a stolen vehicle.
Auto theft in Canada remains well above historical levels, according to the Insurance Bureau of Canada (IBC). While theft claims fell in the first half of 2025, insurers still recorded 12,887 claims, about 50% higher than a decade ago. The cost of those thefts also remains elevated, with insured losses topping $360 million in the first half of the year—roughly three times the level seen in 2015, IBC data show.
With auto thefts rising, buyers need to take extra steps to verify a car’s true identity before handing over any money. Here’s how to protect yourself and avoid losing both the vehicle and the cash you paid for it.
Jump straight to:
Check the Vehicle Identification Number (VIN)
The Vehicle Identification Number (VIN) is a unique, 17-character code assigned to every car, truck, SUV, and motorcycle. It’s used to identify the vehicle’s make, model, and production details, and it’s a key way for authorities and insurers to confirm a car’s identity.
You can find the VIN in several places, including:
- The ownership permit
- Your insurance pink slip
- Under the windshield on the driver’s side
- On the driver’s door jamb
Before buying a used car, make sure the VINs on the paperwork match the VINs on the vehicle itself. If they don’t match — or if any VIN is missing — that’s a red flag and the sale should be reconsidered.
Read more: Top 10 most stolen cars in Canada for 2025
Always request the original vehicle registration
Once you’ve found the car you want to buy, ask for the original computer-generated Vehicle Registration form, which is mandatory to transfer the ownership of a car.
You should also obtain proof of ownership and identification from the seller. With this documentation:
- Verify that the name on the car registration document matches the one on the photo identification provided by the seller.
- Make note of the seller’s contact details, such as the home address, and driver’s license number.
- Confirm that the car's make, model and color match what is stated on the Vehicle Registration form.
- Obtain a pre-purchase inspection and a vehicle history report from companies like CARFAX. This will help you avoid buying a car that might be a clone, meaning it has a duplicate VIN number from a legitimate vehicle.
- If you’re in Ontario, get a Used Vehicle Information Package, which is a legally required document that gives buyers a description of a vehicle and its history.
Read next: How to read a Carfax report
How to use the VIN to avoid buying a stolen car
After confirming the VIN appears in all the right places, take a closer look to make sure it hasn’t been altered. Signs of tampering include scratched metal, loose or mismatched rivets, glue or paint covering the plate, or VIN stickers that look freshly applied.
Once the physical VINs look legitimate, take these steps:
- Run the VIN through a free decoder tool to confirm that the listed year, make, and model match the vehicle you’re viewing.
- Check the VIN on the Canadian Police Information Centre (CPIC) database, which allows the public to see whether a vehicle has been reported stolen anywhere in Canada.
- Review a CARFAX or similar vehicle history report, which can help identify potential cloning — where a stolen vehicle is given a duplicate VIN from a legitimate car.
If anything seems inconsistent — the VIN doesn’t match the car’s details, the plates look tampered with, or the database flags the number — walk away from the sale.
Learn more: Ontario vehicle theft survey: 38% of Ontarians personally know a theft victim
Low sale prices should be a red flag
Beware of deals that appear too good to be true — they often are, so ask why.
Another red flag? If the seller asks for money to be paid in cash, which you should avoid at all costs. Unlike credit card payments or other traceable methods, cash transactions lack a paper trail, making it harder to dispute issues later.
It's recommended that you go with the seller to a legitimate bank and order a bank draft there.
Check the odometer on the car
Because cars with lower mileage tend to fetch higher prices at resale, shady sellers may try to roll back the odometer by tens of thousands of kilometers to try to dupe buyers into believing that the car is worth more than it actually is. This is an illegal practice known as odometer fraud.
To spot signs of odometer fraud:
- Make sure that the odometer is marked and that the numbers are positioned correctly.
- Confirm that the mileage on the car corresponds with the car’s overall condition. The brake pedal, carpets, seats, steering wheel, and seat belts are high wear areas that require close inspection.
- Check that the oil change labels correspond with the odometer reading.
Remember: An average car travels 25,000 km per year.
Read next: What you need to know about insurance for a new versus used car
What happens if I unknowingly purchase a stolen car?
If you unknowingly buy a stolen vehicle, you’re still at risk of losing it. Police will seize the car and return it to its rightful owner, and buyers typically receive no compensation, even if they purchased the vehicle in good faith.
Insurance companies also won’t cover stolen or re-vinned cars, leaving you financially responsible for repairs or losses.
While it isn’t illegal to unknowingly buy stolen property, ignoring red flags or failing to verify documentation can lead to legal trouble. Taking time to verify the paperwork, run the VIN, and inspect the car thoroughly is the best way to avoid ending up with a stolen vehicle.
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