I'm selling car first time on car sales.
What are the scams I need to watch out for?
I've seen some threads about people getting scanned with money into their bank account and then somehow withdrawn. No sure how is that even possible.
Would be good to get some tips to make sure don't get scammed.
Thanks a lot
just straight up cash only
you can cancel bank cheques
Bank cheques are fine. To cancel a bank cheque you still need it in your possession. If you report it stolen but someone tries to cash it in, you will be investigated.
It's not like a loan, a bank cheque is your actual money that you've given to the bank and it will take time to cancel.
If you're the seller, just don't take a month to cash it in.
To cancel a bank cheque you still need it in your possession
No you don’t. Real estate apparently lost one we gave them. I went to the bank and got another very easily.
I went to the bank and got another very easily.
after filling in a declaration. And it was a cheque made out to a specific person/company right?
What do you think would happen to that cancelled cheque if the named person, who you said never had it, presented the first one to their bank?
@Ryanek: True, but if I give you one in good faith and then get to the bank and cancel/replace whatever you don’t have the money while I have the car.
Bank cheques aren't 100% foolproof, so yes cash is king or transfer direct into your bank account.
With a decent amount of effort and stat dec, sure, but pretty unlikely.
If you're selling a car with any substantial value, accepting cash would come with its own risks.
I've sold couple of cars in the past, $12-16k, both times met the buyer at the bank, deposited the cash into my account and handed over the keys.
If the buyer insisted giving me a bank cheque, I'd hand over the keys once the funds were cleared in my account.
I think it might be also OK to meet with the buyer at a bank if we both had an account in the that bank and transfer the money at the counter and then checking my balance and handing over the keys.
Not without the actual cheque
anything to do with; Paypal, western union, couriers, crypto, cheques, my friend is coming to inspect it for me, i want you to take it to my mechanic for a once over, can I take it for a test drive alone, people offering to pay above what your listing it for
the list is endless - scammers will always find something new. if it smells shit or is too good to be true - its a scam
Thanks
This is what I would do to protect myself:
- If selling on car sales: don't accept payment anything apart from car sales payment system. They have their own payment gateway for customers
- If you're selling like on gumtree or marketplace, accept cash in hand
As MrThing stated, those are common things scammers will do.
Don't let them test drive alone. GO WITH THEM. Personally, even if you have their phone or wallet or driver's license, who's to say it's fake or a burner phone or a fake wallet as collateral? If it's a legit buyer, they will have no problems with you riding with them in the car for a test drive.
Your car will not be insured for theft if you let them test drive.
Other than that, only accept cash or instant bank transfer. Only deal with the buyer in person, no ‘agent’, friend, courier etc. Sight their licence and record the details. Do the rego transfer online the second the car leaves your possession.
depends on your policy, some cover it if you are in the car etc.
To clarify, let a stranger take your car without you in it and you aren’t covered for theft.
Check your policy before letting an unlisted driver behind the wheel. Some cover anybody with a suitable licence, some cover unlisted non-household members, some only cover who is listed on the policy and no one else.
Get a burner mobile.
On your ad say no offers unless you have inspected the car.
Make sure you remove log book and rego papers from glove box. People take them.
Make sure you do a bill of sale to say the car is sold as is. Private sales are anyway but having the bill of sale means you have something to remind them.
Look at your local state advice for selling cars and follow that. Ie rego transfer.
Plus the above suggestions in other replies.
Thanks. Haven't heard of Bill of sale. How does one organise it?
Just use Word and make your own receipt. Include the seller and buyers name and address, car VIN and engine number, the date, sale price, state it's 'as is' with no warranty, etc. Print two copies and both sign it.
Obviously also complete whatever transfer paperwork your state requires.
This also protects you from speeding fines and tolls racked up after the sale.
If you don’t have a printer you can just hand write a receipt.
I, Xxx of yyy address sold vehicle, rego, vin, to AAA (drivers licence no) on DATE free of encumbrances in as is condition with any faults known and unknown
Signd buyer
Signed seller.
It won't be the guy you sell the car to who will be the issue but the mad man who makes a million demands and low ball offers you just need to turn off.
I agree… I have a totally seperate phone number that I use for selling on social media/selling sites. I turn it on during the days that I have the item for sale and turn it off once the sale is completed and put the phone back in the cupboard until I need it again.
I learned my lesson ages ago when a guy who I sold a car too just became a complete and utter pain in the arse after the sale… messages and phone calls asking where this was, where that was and wanting me to repair issues that were noted in the original sales listing.
I don’t want these arseholes knowing my personal phone number.
You will be contacted by plenty of people who unfortunately work on oil rigs and are desperate to buy your car, for some strange reason.
I have sold two cars and let the buyer go for a test drive without me. One buyer actually just drove around the block and returned 30 seconds later. Shortest test drive I have ever seen. I put a spare mobile phone in the car so I could track where it was and how fast it was going, just in case they racked up a speeding fine in my name.
If your area has a lot of crime, you want to take precautions. When I sold my last car, close to forty people overall inspected the car before it was sold. Helps to have other people around, as some people turn up with other people. Should have met at a public place.
Only other online scam I know, is a tow scam. You get a good offer and the buyer says "they will send the tow truck". The truck turns up, but they have a much lower amount of money with them. If you refuse, they ask for fees for their time. Thought this was farfetched, but had it happen on facebook. The "buyer" worked for a nearby wreckers and wanted to send a truck to my address, without seeing the car.
Thanks. Good to know about tow truck
And the tow truck actually turned up with less cash and demanded money for their time from you?
Wouldn’t be surprised if the wrecker set up the driver with less knowing that’s the most they’d pay. Your deal is not with the driver, but the wrecker. The drivers deal is also with the wrecker, driver needs to take it up with them.
Only got to the offer stage on facebook. Only just read about the scam a day before that. When I said to meet in a public place to view the car and pay, they didn't want to go through with it. The article said the tow trucks do things like blocking your driveway until you pay.
Selling a car recently for $26K had guy on a fishing vessel he said they had no phone where they were!, once I said no Paypal to EFT as he suggested must be wire EFYT transfer at time of collection, I never heard from him again, had couple other scammers too with various BS payments and collection by a friend.
Thanks. So is there issue if someone does like Payid or EFT and the funds are in my account before I give car to them (example I know from CBA to CBA fund transferred are instant)
As I understand it they pay to your EFT account with CC via Paypal, get someone to collect car then claim back the funds on CC saying did not collect car. Another is "I'm on an oil rig will get a friend to collect" if you see that run away.
Only do EFT to EFT hand over keys at transport dept. with buyer and change over reg, if you don't do latter driving infringements from buyer may come to you!, Always stipulate in advertising who pays State stamp duty and keep copy of the Advert just in case.
Cash only or bank cheque.