While internet fraud has increased during the past several years, don’t be discouraged from selling your car online; just be cautious and educate yourself about potential scams.
Be on the lookout for these popular scams:
Cashier’s Check Scams
In a typical scenario, a buyer—who usually inquires from overseas—arranges to pay for the car with a cashier’s check or certified check in an amount that’s more than the vehicle’s purchase price. The buyer justifies this by saying a previous sale fell through or the extra money is needed to pay for shipping expenses or customs fees. The reality is, the cashier’s check is bogus, but it can take some time to find this out.
The buyer then asks the seller to wire the difference either to him or to the shipping company to cover expenses. Or a buyer sends a cashier’s check as a down payment, then decides to back out of the deal and asks for the money back.
When asked to wire money, just say no. It’s never a good idea to wire money to someone you don’t know because it’s an untraceable transaction. Stop negotiating with anyone who proposes this kind of arrangement.
Phony Escrow Services
Escrow services serve as middlemen between buyers and sellers. They collect payments from buyers, wait until the buyers collect and approve the purchases, and then send the money to the sellers.
The internet is littered with bogus escrow sites, so make sure you use a licensed, reputable service. Cars.com recommends Escrow.com (siy.cars.com/escrow).
Never blindly accept an escrow service proposed by a buyer. If a buyer insists on using a service other than Escrow.com (siy.cars.com/escrow), find a new buyer.
