By Frank LingIf you choose to sell your used car online, there are a few things you can watch out for to make sure you don’t get swindled or scammed.
Never turn over the car and ownership papers until the check has actually cleared the bank for payment. Even checks that bounce appear to be legitimate until the bank tells you there are no funds backing it. Try to arrange a payment through a cashier's check.
Another big tip-off that the buyer you are dealing with may be dishonest is if they refuse to meet with you face-to-face to hammer out the details. If they won’t meet with you, it’s a good chance that they are hiding something. Avoid these buyers.
Use Legitimate Escrow Services
An escrow service, simply stated, is a reliable third party that will hold onto the check or payment until both parties are satisfied the deal is a good transaction.
These services are usually provided by banks or special companies in order to protect the buyer and the seller. If the buyer insists on a particular escrow service that isn't traceable or cannot be proven to be legitimate, take your money and your business elsewhere because you're probably being scammed.
Full Payment Up Front
Almost anything you buy today can be done by charging it on a credit card. This makes buying big ticket items a little easier by spreading out smaller payments over time.
But when selling a car, you're not a credit agency and there is virtually nothing that you can do, outside of suing, to get any back payments that are owed to you. In short, save yourself headaches and don't agree to any payment plans offered by the buyer.
Don't Sell to Overseas Buyers
Sometimes there will be very attractive offers online that say overseas buyers are willing to purchase cars without seeing them in person because the demand is so high for particular model cars.
These are usually scams trying to separate your title papers from you, in addition to passing on a phony check. Sell locally where you can see the buyer in person.
Get All the Details
If you have a buyer that seems to be genuinely interested in purchasing your car, get as much information on him as possible such as driver's license number, home address, phone number, work number, etc. The more you can verify the buyer's identity, the safer you'll be.
Source:
AOL Autos