Finding a car you love and driving it off the lot is supposed to feel like freedom — not a financial trap.
That’s what Tucson resident Santino Perez thought when he bought a 2017 Ram 1500 Sport last June.
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“It was such a nice truck, a really nice looking truck,” Perez told 13 News Investigates. “It was a nice color, orange, 4×4, and a four-door.” (1)
But soon after, safety problems began to surface. Perez later discovered his dream ride might have been a “gray-market” vehicle — a truck originally built for use in another country, like Canada or Mexico, and not in full compliance with U.S. emissions and safety standards.
Now he’s staring down nearly $8,000 in repairs. It’s a hard lesson in what to watch for before buying a used car.
The gray-market trap
Perez first noticed something was off while driving on the freeway when the truck began to shake once he hit 55 miles per hour. Concerned, he took it back to the dealership, where he was told everything checked out. But the relief didn’t last long.
Soon after, the check engine light flicked on. Perez went to a different mechanic for a second opinion, and that’s when things took a turn.
“They’re the ones who said there’s almost $8,000 in repairs that need to be done — a lot of undercarriage and chassis issues,” Perez recalled.
According to Consumer Affairs, the average vehicle costs about $900 a year to repair and maintain. That number can fluctuate depending on mileage, age and upkeep. (2) But for Perez, that $8,000 bill came on top of what he’d already paid for the truck.
He thought his extended warranty would help cover it. Instead, the provider refused for one simple reason: it was a gray-market vehicle.
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A risky road for buyers
Gray-market vehicles occupy a murky middle ground — not outright illegal, but often a regulatory minefield.
Don O’Brien, investigations manager with the Better Business Bureau, says complaints about such vehicles are uncommon but do occur.
Under federal law, cars and trucks imported outside official manufacturer channels can’t be sold or operated in the U.S. until they comply with domestic safety and emissions standards.
“It can be damaging for consumers because again the warranty is no good, and fixes, anything that goes wrong with that vehicle are going to be all out of your pocket,” he said.
States like California have sought to protect consumers by mandating transparency. Sellers must display clear disclosures if a vehicle lacks a valid U.S. warranty, compatible replacement parts or other critical safeguards. (3)
Those rules are backed by decades of regulation — from the Motor Vehicle Safety Act of 1966 to the Clean Air Act of 1990 — all intended to make sure imported vehicles meet the same standards as those built for the American market. Regulators caution that even if a seller insists a foreign vehicle complies, it likely doesn’t.
Spot the red flags before you buy
Gray-market or not, buying a used car calls for a healthy dose of skepticism.
O’Brien says one quick red flag is a nonconforming Vehicle Identification Number (VIN). Every vehicle built for the U.S. since 1981 has a standardized 17-digit code, and the tenth digit reveals the model year. If that doesn’t match what the seller claims, it’s best to walk away.
Mileage inconsistencies can also raise alarms. If the odometer suddenly switches from kilometers to miles, the car may have crossed borders — or even been tampered with.
Before you buy, spend a few dollars on a vehicle history report. In Perez’s case, asking for service records like oil changes or maintenance reports could have revealed how well the previous owner cared for the truck.
And if a deal seems too good to be true, it probably is. Be wary of sellers who rush payment or dodge inspection requests. Finally, never skip the test drive — take the car on the highway, brake hard and listen for strange noises when turning or accelerating.
For extra peace of mind, schedule a pre-purchase inspection with a trusted mechanic. It usually costs around $100 but can save you from thousands in surprise repairs — or worse, a car you can’t legally drive.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
13 News (1); Consumer Affairs (2); Lemon Law Auto Fraud (3); US Customs and Border Protection (4).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.