Selling Your Car Privately? Here’s How to Avoid Scams

Selling your car privately can get you thousands more than trading it in—but it also opens the door to scammers. From fake payments to identity theft, fraudsters have countless tricks to exploit sellers.

This guide reveals the most common car-selling scams and how to protect yourself while getting top dollar for your vehicle.

Top 5 Car-Selling Scams (And How to Spot Them)

  1. The Overpayment Scam

How it works:

  • A “buyer” sends a check or digital payment for more than the asking price.
  • They ask you to wire back the difference, claiming it was an accident.
  • Later, the original payment bounces, leaving you out the money you sent.

Red flags:

  • Buyer refuses to meet in person.
  • Payment comes from a suspicious account (e.g., business check for a personal sale).

How to avoid:

  • Only accept cash, bank-certified checks, or secure apps like Zelle or PayPal Goods & Services.
  • Wait for checks to fully clear(up to 10 business days) before handing over the title.
  1. The Fake Escrow Scam

How it works:

  • Scammer insists on using a fake escrow service(often mimicking a real one like Escrow.com).
  • They “send” payment to the fake site, which emails you a bogus confirmation.
  • You release the car, but the money never arrives.

Red flags:

  • Buyer pushes for a specific (unfamiliar) escrow service.
  • Escrow site has poor grammar, no customer service, or odd URLs (e.g., “Escrow-secure.net”).

How to avoid:

  • Only use well-known escrow services(verify the URL).
  • Confirm funds directly with your bank.
  1. The Test Drive Robbery

How it works:

  • A “buyer” asks for a test drive, then drives off with your car.
  • Common with luxury or high-demand models.

Red flags:

  • Buyer refuses to show ID or meet in a public place.
  • They come alone but insist on test driving without you.

How to avoid:

  • Meet at a police station parking lot(many have designated safe zones).
  • Take a photo of their driver’s licensebefore the test drive.
  • Ride along during the test drive (or have a friend follow in another car).
  1. The Phishing Scam

How it works:

  • Scammer poses as a buyer and asks for a “vehicle history report”from a shady link.
  • The link steals your data or installs malware.

Red flags:

  • Buyer won’t discuss price but insists you “verify” the car first.
  • Link goes to a site like “AutoFaxReport247.com” instead of Carfax or AutoCheck.

How to avoid:

  • Only use legitimate VIN check services.
  • Never click links from strangers—type the site URL yourself.
  1. The Title Washing Scam

How it works:

  • Buyer purchases your car, then forges a clean titleto hide past damage (flood, salvage, etc.).
  • They resell it at a markup to an unsuspecting victim.

Red flags:

  • Buyer is overly eager to close the deal without inspecting the car.
  • They ask you to sign the title but leave sections blank.

How to avoid:

  • Fill out the entire title yourself(don’t let the buyer do it).
  • Write “Sold As-Is” on the bill of sale.

5 Rules for a Safe, Profitable Sale

  1. Screen Buyers Carefully
  • Ask for their full name, phone number, and reason for buying.
  • Avoid buyers who won’t answer basic questions.
  1. Only Meet in Safe Locations
  • Daytime, public places(e.g., bank parking lots, police stations).
  • Never give out your home address early in the process.
  1. Use Secure Payment Methods
  • Cash is kingfor local sales.
  • For large amounts, meet at the buyer’s bank to watch them withdraw a cashier’s check.
  1. Never Hand Over Keys Before Payment
  • Even if the buyer “promises” to pay later.
  • Complete the bill of sale and title transferon the spot.
  1. Trust Your Gut
  • If a deal feels off, walk away.
  • Real buyers won’t rush you or avoid paperwork.

Final Tip: Protect Yourself Legally

  • Bill of Sale: Include the VIN, sale price, date, and “As-Is” disclaimer.
  • Release of Liability: File this with your DMV immediately after the sale (to avoid parking tickets or tolls in your name).

Bottom Line

Selling privately is worth it—if you stay alert. Follow these steps, and you’ll avoid scams while getting the best price for your car.

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By Ethan

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