6 Scams to Avoid When Selling a Car

There are countless stories of people being scammed when purchasing a vehicle. From false documentation and undisclosed engine issues to car clocking and insecure transactions, buyers are often victims of various forms of auto fraud. What some people don’t realize is that sellers are also vulnerable to scams.

There are always people looking to exploit others for financial gain, particularly when selling used products. Although many scams can be avoided by selling to a dealership or licensed salesperson, these organizations rarely offer prices close to those you can get from selling directly to the customer. Therefore, sellers must be very wary of scams when negotiating the sale of their vehicle. As a car owner, you go to great lengths to keep your car in top condition. From protecting your vehicle in an SUV car cover year-round to having it serviced regularly, most people make an effort to maintain the value of their car. To ensure you get the best possible price, keep an eye out for potential scams.

1. Unusual Payment Requests

A definite red flag when selling a car is a buyer with an unusual payment request. While bank transfers and digital transaction systems are becoming more common in the digital age, be very careful regarding the types of payments you accept. Some of the suspicious payment types to look out for include electronic payments via PayPal or bank-certified checks.

With the PayPal scam, the transaction usually revolves around transporting the vehicle. The buyer agrees to pay the full amount for the car via PayPal. The seller receives an email “from PayPal” stating that the payment is pending and that it will be released once payment has been made for transportation. Once the vehicle is dispatched, the payment never arrives.

Essentially, the PayPal scam is a form of email fraud because the message you receive is not from a legitimate PayPal address. Scammers often try to entice sellers with fake certified bank checks that look identical to legitimate ones. Alternatively, they might present you with a falsified money order. In many cases, these offerings are for more than the asking price, tempting the seller even further.

When selling independently, it’s generally advised to deal in cash to avoid scams and complications. For rare vehicles, this isn’t always an option. When accepting bank transfers or checks as payment, wait until the money is safely in your account before giving the vehicle to the buyer. Always be wary of a buyer who’s more focused on the payment method than the actual vehicle.

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2. Monthly Payment Offer

Buyers may agree to the payment type but also request that they pay in installments. While this is a standard option offered by legitimate dealerships, it is also a common ploy adopted by scam artists. Unlicensed second-hand car payment deals can be complex from a legal standpoint. As you haven’t gone through a financial institution, you have no way of collecting payments if the buyer stops giving you money prematurely. Let the buyer negotiate a car loan and repayment schedule with a bank or financing company, and focus your energy on getting the best possible price for your vehicle.

3. Offering to Purchase Without Viewing

If someone expresses interest in buying your vehicle without physically inspecting the car, alarm bells should start ringing in your head. This is often one aspect of a scam where the proposed buyer offers to send money via PayPal, wire transfer, or check.

Unless you are certain of someone’s identity, don’t allow others to collect the vehicle on the buyer’s behalf. This anonymity may give the buyer leverage to claim the vehicle was stolen or damaged when they bought it. To avoid such scams, ensure your vehicle is accurately described in its advert and disclose any known faults or problems before it’s sold. It is also beneficial to get the buyer to sign a “sold as seen” receipt before the sale agreement.

4. Swap or Trade Deals

Some scammers attempt to undermine you by proposing a trade. The vehicle they offer you is likely to be a luxury car or a more valuable model on the surface. However, more often than not, this type of offer is too good to be true. The vehicle they are willing to trade may appear to be more expensive or valuable than yours, but there are likely to be serious issues with it. This exchange is often a tactic for people looking to get rid of stolen vehicles. Alternatively, the car may have significant mechanical problems that significantly diminish its value. Unless you know and trust the buyer, avoid swap and trade deals.

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5. False Resellers

False resellers may not cost you a lot of money but avoid them nonetheless. When selling a car, you may receive a message or call from a person claiming to know someone interested in buying at the asking price or higher. They request an upfront reseller fee for arranging the deal. Even if there appears to be an interested buyer, the deal never comes to fruition, and you are out of pocket.

6. Test Drive Scams

Although it is quite rare, some vehicles are stolen when sellers offer a test drive. While test driving is an important factor in securing a sale, you must conduct them safely. The best way to avoid a test drive scam is to create a test-driving process that you stick to with all potential buyers. Here are some useful tips to follow:

• Screen the buyer online as much as possible before arranging to meet them for a test drive.
• Agree beforehand that they will present you with their driver’s license and identification. If there will be multiple passengers or drivers, request that they also provide their IDs.
• Agree to meet at a well-known public place. Ask a friend to accompany you.
• Take photos of all licenses and identification documents when you meet the potential buyers.
• Agree on a test drive route with the buyer.
• Ride along with them during the test drive.

Although this method involves some negotiating and planning, it is a good way to prevent any problems arising from test drives.

Don’t Ignore Suspicious Activity

Selling a car can be a stressful process. If your vehicle advert generates a lot of interest, it can be hard to keep up with all offers and requests. However, despite the pressures of arranging viewings and test drives, you should never ignore suspicious activity. Scammers can target sellers in several ways, from attempting car theft to stealing personal information.

Creating a sales plan and adopting scam preventative measures reduces the risk of a rogue deal. Ensure you stay patient throughout the process and contact the police if you think you may have been scammed.

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