Sell Your Car Without Being Taken for a Ride: 7 Car Buying Scams To Avoid

Watch out for these 7 common cons that can may cost you dearly when selling your car, truck or van!

1. Fake Check Schemes

A favorite scam that car buying con artists attempt is to use fake bank checks to pay for the vehicle.

There are a few things you can watch out for.

Plain and simple, they like creating fake checks on high tech printers to pay for the car. You receive a phony check for the correct amount and sign over the title for your vehicle.  The problem, when you deposit into your account, it will bounce.  No car and no money!

Sadly, the ‘buyer’ will disappear without a trace and now has a free car.

Another version of the same ruse is receiving a certified bank check. These can offer sellers some security as they’ve been stamped and verified by the bank. However, forgeries are still commonplace.

In some cases these fraudsters may even create a check for more money than the vehicle is worth and ask you to reimburse them for the overage (keeping a bit more for your inconvenience) Problem is the check will never clear  as its fake..

2. The Overpayment Scam

The overpayment scam is another favorite touched briefly above.

In this case, the buyer will mail you a fake bank check for more than your car is worth telling you they will be sending a transport company to pick up the vehicle and title.  You get the check and the scammer asks you to wire him the overage back.   If you do this you’ll never see the money again as the check was fake.  They also aren’t looking to pick up the car wither.  They just wanted you to send them the money via wire.

3. False Escrow Services

An escrow service is (usually) a useful way to ensure a smooth sale between buyer and seller.

Essentially, a buyer pays this service, rather than the seller directly. When the seller releases the item (whatever it may be) to the buyer, they receive the money. It’s a way for a buyer to ensure receipt of their goods. And, in the end, both parties get what they want.

However, scammers have been known to suggest the use of fake escrow services. You agree to use the service and receive a message informing you the money has been received. You sign over the car.

And then, strangely, the escrow service no longer exists! There was never any money, and you’ve lost your car. Be sure to only employ reputable escrow services.

4. Paypal Problems

PayPal’s prime territory for fraudulent buyers.

The scam works in the following way. You’ve set up a listing online and receive enthusiastic interest from a buyer. However, for whatever reason, they can’t come to see the car and offer to pay you via PayPal.

But they need you to set up a PayPal account. You do so. They ask for your PayPal email address. You send it. Sometime later you receive an email from ‘PayPal’ saying the money’s in your account. You ship the car.

However, it was all a ruse; the message from ‘PayPal’ was a well-put-together fake. And you just lost your car.

5. The Reseller Swindle

You’ve just listed your vehicle and get contacted by someone claiming to be a reseller.

They inform you that, for an upfront fee, they can put you in touch with an interested buyer. You’re intrigued. The ‘reseller’ claims your car’s worth more than you’ve asked for it, and that the potential buyer will pay the reseller fee anyway.

You send over the money. But no buyer exists and you’re a few hundred bucks down. At least you still have the car though!

6. False Swaps

The false swap is another common trick up a con artist’s sleeve.

You’ll be approached by someone interested in your car. However, rather than pay you for it, they’ll suggest you trade cars. And, what do you know, the car they’re offering you is a much fancier, more expensive model.

It’s an easy trade, right? You swap the car you wanted to sell for something even better.

Be wary though. In these cases, the proffered car is often stolen, salvaged, or damaged in some serious way. It isn’t in your interest to trade.

7. Multiple Test Drivers

Be wary when selling your car in person.

Nine times out of ten you’ll deal with a legitimate, lovely person. However, on the odd occasion, you’ll meet someone up to no good.

You should exercise caution when the buyer comes to purchase the car with someone else there. They may ask to test drive the car. Again, it could be an honest request.

But it has been known for multiple drivers to simply drive off with your car and never come back. Or, if you’re in the car too, the second individual could threaten you, while the other’s driving: let them have the car, or suffer the consequences.