How can I avoid scams when I buy a used vehicle? (2024)

FAQs

How can I avoid scams when I buy a used vehicle? ›

You should always ensure that the vehicle you intend to buy has no liens on it or, if it does, that those liens are released before you purchase it. Verify that the owner's driver's license matches the information on the car's title, then visit the local DMV to check for liens. Perform a vehicle history check.

You should always ensure that the vehicle you intend to buy has no liens on it or, if it does, that those liens are released before you purchase it. Verify that the owner's driver's license matches the information on the car's title, then visit the local DMV to check for liens. Perform a vehicle history check.

Verify the buyer's identity: Before finalizing the deal, ask for the buyer's full name, contact information and a valid driver's license. Be skeptical of overpayment: If a buyer offers more than the asking price and then wants a refund for the difference, they're likely a fraudulent buyer.

Cash is Often Used By Criminals

But for criminals, using cash allows them to profit from illegal activities while hiding their revenue from law enforcement and the IRS Purchasing a vehicle with cash could be a great way to offload ill-gotten gains, and turn them into a legitimate purchase with verifiable paperwork.

Direct cash payments are often considered one of the safest car selling methods. It provides immediate payment and eliminates the need for any third-party involvement. With cash in hand, there are no concerns about bounced checks or fraudulent transactions.

Besides cash, a certified cashier's check is the most secure way to accept payment during a private sale. Unfortunately, potential for fraud still exists. There is no guarantee that the buyer actually has the money in the account to cover the check, and you may find yourself in a situation with a bounced check.

Receiving a check or overpayment and being asked to wire a portion of the funds back. Being asked to provide your password, PIN, Social Security number, account number or financial information to someone who contacts you out of the blue. Get-rich-quick and other promises that sound too good to be true.

Verifying buyer information can be done by searching their name, email, phone number, or address on Google or social media platforms. This can help you confirm their identity or spot any red flags.

The dangers of fake CARFAX reports

Fake CARFAX websites can put you at risk of credit card theft and phishing for personal data. With a fake report you can't leverage our 30 days data update guarantee and access up-to-date information, for example on accidents or ownership changes.

Contact State Agencies. If, after speaking with the dealer, your situation is still not resolved, you may want to contact state agencies. Many states have government programs designed to monitor and regulate auto dealers.