There is a “healthy skepticism” to carry- not too trusting, not too mistrusting.
This list of tips is not exhaustive, but does cover a lot of ground.
Buyer Safety Tips
Employ every bit of gut-check
If a deal appears too good to be true, it probably is.
Meet sellers in well lit, public locations.
Bring a friend/family member
Be cautious of common warning signs, including:
Unreasonable or urgent time constraints
Extreme sob stories of a dire situation to sell a car
Unconventional or nonstandard payment arrangements
High-pressure sales tactics
Avoid carrying large amounts of cash
Utilize your find-my-phone and let people know of your location
Only test drive if the car is registered/insured
Meet at a local notary for state titles that require a notary public
As soon as buyer pays for the car, insure the car
Deposit Fraud
Exercise caution if a seller:
Requests a large upfront deposit
Asks you to send funds to a third party
In these cases, funds may be sent and the seller may disappear without completing the transaction.
Inaccurate Titles
Sellers may falsely claim that a vehicle has a clean or clear title.
Verify title details through Carfax
Exercise additional caution with vehicles previously registered in states prone to flooding or hurricanes.
Title “washing” can occur when damaged vehicles are retitled in another state.
Always confirm that:
The VIN on the title matches the VIN on the vehicle
Cash Payments
Carrying large amounts of cash poses safety risks.
Buyers have been robbed during in-person cash transactions.
If paying with cash:
Complete the transaction inside a bank branch
Cars with a Lien (current loan)
Buying cars with a loan requires extra steps and, ultimately, a level of trust between buyer and seller. Here is the dynamic:
Buyers need to:
Make sure that the funds paid to the seller actually go towards paying off the loan. Seller only gets to keep the difference (if there is any).
Wait an average of 10-14 business days for the lien to be cleared. Title (or lien release) gets sent to the seller shortly after.
Sellers need to:
Make sure that the buyer’s funds are legitimate.
If seller gives the car and its keys to the buyer before the title arrives, buyer needs to insure the car.
Refer to our article on purchasing cars with loans for further details.
Again, this list is not exhaustive, it covers much of the ground.
In our experience, most sellers are not out to scam people. But do not let your guards down. Always shop with a healthy level of skepticism. Not too trusting and not too mistrusting.
