California sheriff issues warning about ‘oil-in-the-engine’ car-buying scam — how it works and what to watch out for
Selling a car online can already feel like a trust fall with the internet and for one Newcastle resident, that trust almost backfired.
Deputies in Placer County, California, say two Fremont men were arrested after allegedly pulling off a classic “engine oil” scam targeting private sellers.
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The suspects — 19-year-old Lulian Mihai and 36-year-old Decebal Mihai — reportedly posed as interested buyers, then poured oil into the seller’s engine during a test drive to make it look like the car had serious mechanical issues. Once the car started smoking or making noise, they’d act concerned and offer to take it off the seller’s hands for a fraction of the original price. (1)
“This well-known scam tricks victims into believing their vehicle has a catastrophic problem, which the all-too-willing suspects are able to take off the victim’s hands for a steeply reduced price,” the PCSO said.
Here’s how the scam works and what to watch for if you’re selling your car online.
The new wave of scams hitting drivers
When the Newcastle resident noticed smoke coming from her car during the test drive — something that had never happened before, she immediately grew suspicious. She believed the potential buyers put oil into the engine to make it seem like there was a mechanical issue. Trusting her gut, she told the men to come back another day and then contacted the PCSO.
It’s not an isolated incident. Americans reported losing a record $12.5 billion to fraud in 2024, according to the Federal Trade Commission, with car scams now shifting into high gear. (2) Point Predictive’s latest Auto Lending Fraud Trends Report estimates lenders could face $9.2 billion in auto-related fraud losses this year, the highest ever recorded. (3)
But the “oil-in-the-engine” trick isn’t the only scheme revving up online. Scammers are getting more sophisticated, swapping dirty motor oil for digital deception.
Virginia resident Jeffrey Carr thought he’d found the deal of a lifetime: a 1970 Chevrolet Chevelle — the same model as his father’s first car — listed online for just $22,000. The “broker,” supposedly based in Cleveland, provided contracts through DocuSign, a bill of sale and dozens of glossy photos that made everything look legitimate. But after Carr wired the money, the seller vanished.