How To Protect Myself When Selling a Car

[Rito]

Hi Folks,

For the first time, I've decided to sell my car privately as opposed to trading it in for my new Tesla. I have a potential buyer who has offered my asking price, and I want to make sure that I don't get scammed in some way. I owe some on this current car, and he has proposed to pay the rest of the loan as well as my portion with bank drafts. We would meet at my personal bank first to deposit my half, and then head to the bank with my auto loan to pay the rest off there and finalize the deal. I've read some horror stories of fraudulent bank drafts and want to hear from some recommendations from experienced sellers.

Thanks!

 

[glide]

Hi Folks,

For the first time, I've decided to sell my car privately as opposed to trading it in for my new Tesla. I have a potential buyer who has offered my asking price, and I want to make sure that I don't get scammed in some way. I owe some on this current car, and he has proposed to pay the rest of the loan as well as my portion with bank drafts. We would meet at my personal bank first to deposit my half, and then head to the bank with my auto loan to pay the rest off there and finalize the deal. I've read some horror stories of fraudulent bank drafts and want to hear from some recommendations from experienced sellers.

Thanks!

If your bank accepts a fraudulent bank draft at the point of transaction…well…that’s on them.
The only way I would consider this a risk is if you were not meeting at the bank and paying the loan off immediately.

 

[dabbler]

I do all my car sales in person with the seller at my bank when possible. If not, all financial transactions are via wire transfers at my bank and theirs. Once funds have been received, title is provided FedEx. I hold the car and title until all financial transitions are complete. Money can also be held in escrow to protect both parties.

 

[mk677]

try this site, for $475. fee they get in the middle of the transaction
www.tred.com

 

[qdeathstar]

Always wear your rubbers

 

[qdeathstar]

The obvious solution is to demand a certified check. Then verify the check with the issuing bank.

 

[DanCar]

The obvious solution is to demand a certified check. Then verify the check with the issuing bank.

Scammers know how to falsify certified checks and the bank will accept them. Then 5 days later the bank will revert the funds and you are out of a car and the money.

 

[DanCar]

... I don't get scammed in some way. ...

Use common sense. If the person is reputable then go with the flow. Ask for personal information that you are comfortable asking for and giving. Like: profession or social media page(s). They may get scammed also so you need to share too. Take a pic of driver's license. What vehicle are they driving? If they don't share personal information, if they are "out of town", then that should raise some red flags.

 

[designrs]

The obvious solution is to demand a certified check. Then verify the check with the issuing bank.

Agreed. The best would be if you and the buyer happened to use the same bank.
Either way, verify any money orders or cashier checks with the issuing bank and be sure that you are calling trusted phone number of the bank. Even car dealers, especially high-end ones, verify everything.

 

[qdeathstar]

Scammers know how to falsify certified checks and the bank will accept them. Then 5 days later the bank will revert the funds and you are out of a car and the money.

Which is why you verify the check with the issuing bank.