It used to be that selling a car meant posting an ad in the newspaper classifieds, fielding phone calls, arranging test drives, and accepting a hand-written check as payment before the buyer drove happily into the sunset.
Those days have long since been replaced by online ads resulting in text-message replies and fake checks as payment.
The vast majority of private-party used-car deals go down without a hitch, but occasionally scam artists get away with conning sellers out of thousands of dollars. How can you avoid such a fate?
CNN posted a story last weekend about a new scam hitting folks mostly in the midwestern United States. It’s a ploy that’s common in the world of private online sales, but thankfully is also easily avoidable. Here’s what happens:
The sellers are given bank checks for the purchase that appear to be legitimate, the National Insurance Crime Bureau said. But after the seller has signed over the title and given the buyer the car, they discover that the check is bogus.
Signing over the title once a check is in hand makes sense, but sellers need to take it a step further and make sure the check clears and the cash is in the bank before transferring ownership. Otherwise the unsuspecting seller could end up without a car but still being responsible for any balance owed on it.
The best way to guarantee you won’t be the victim of a scam is to trade in your car at a reputable dealership. If you decide to take on the risk of selling your car yourself, demand cash or a cashier’s check, but verify the check with the issuing bank, and don’t sign over the title until you have the cash.
Selling your car on your own can be worth the small risk, because it allows you to get the most value out of it. Listing your car on CarGurus will give you the tools to ask a fair price and give you the best odds of selling your car, to a real buyer, fast.
Have you ever had a problem with scammers when selling a car online?