Selling your car privately can be a great way to get top dollar, but it also opens the door to fraud and scams, especially when transferring the vehicle title. Unfortunately, many private sellers fall victim to clever schemes involving fake checks, overpayment traps, or identity theft.
In this guide, we’ll walk you through:
Here are some of the most common title-related scams private sellers face online and offline:
A buyer offers more than your asking price and asks you to wire back the difference. The check turns out to be counterfeit.
💸 Example: You sell your car for $8,000 but receive a $12,000 check. After wiring back $4,000, you’re left with nothing.
Buyers send a cashier’s check or money order that looks official but is forged. Once deposited, the bank reverses the transaction after discovering the fraud.
⚠️ Tip: Always treat cashier’s checks like personal checks—wait for full clearance before releasing the vehicle or title.
The buyer claims they’ve sent payment via Western Union, MoneyGram, or Zelle, but no real funds were transferred. By the time you realize, the car is gone.
❌ Never release the car or title until the funds have fully cleared your account.
A buyer says they’re purchasing the car on behalf of someone else and asks you to ship it. They may even provide fake documents or contracts.
📦 Red flag: You never meet the actual buyer, and they refuse to pay locally.
A buyer takes the car for a test drive and doesn’t return. This isn’t a title scam per se, but it results in loss of both the car and title.
🧑🤝🧑 Tip: Ride along during the test drive and keep your ID and phone handy.
They use a local area code or email address, but are overseas. They’ll ask you to mail the title or ship the car before sending real money.
📍 Always confirm location through video calls or local meetings.
Here are warning signs that you may be dealing with a scammer:
🛡️ If something feels off—even slightly—trust your instincts and walk away.
To protect yourself when selling your car and transferring the title:
Stick to:
Avoid:
🧾 Always wait for payment to clear before signing over the title.
Never hand over the title or car without meeting face-to-face.
Bring a friend or family member for added safety.
Ask for:
📲 Some platforms (like Facebook Marketplace) allow verified video calls to confirm buyer identity.
Never mail the original title or sign it over until:
If you must mail the title, use certified mail with a signature required.
Even if not required by law, always complete a bill of sale with both parties’ names, addresses, signatures, and the sale amount.
This protects you in case of future disputes.
📄 Use tools like DocuSign or HelloSign for secure digital signing.
After completing the sale, report it to your state DMV as soon as possible.
This ensures you’re no longer responsible for:
Most states offer online reporting tools :
Scammers often communicate only via text or email to avoid voice or video contact.
📞 Always speak to the buyer at least once before proceeding.
Before finalizing the sale, run a VIN check using:
Ensure the title matches the vehicle and there are no hidden liens or brands.
Out-of-state sales aren’t inherently bad, but they come with higher risk.
If selling out of state:
For long-distance or high-value sales, consider using a trusted escrow service like:
These services act as intermediaries to ensure:
💳 Fees apply, but they help prevent fraud and build trust with buyers.
Always retain copies of the following:
Store these securely for at least one year.
You can also find templates on:
Here’s how to vet a buyer before handing over the title:
A: No. Never hand over the title until full payment has cleared.
A: Contact your bank immediately, file a police report, and notify your DMV.
A: Yes, if you share too much personal information. Always black out sensitive data on documents before sharing photos online.
A: Yes—if you follow best practices, screen buyers carefully, and take precautions.
A: If you reported the sale to the DMV, you won’t be held liable for post-sale violations.
Selling your car—and transferring the title—is a big deal. While most buyers are honest, scammers are everywhere, especially online.
By taking simple precautions like:
Remember: a fast sale isn’t always the best sale. Take your time, trust your gut, and protect yourself from fraud.
If you found this guide helpful, share it with others who are preparing to sell their car. Knowledge is power, and it could save someone thousands of dollars.
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