Used-car buying is a great business wrought with scams. Used-car sellers need to be informed of possible car scams. Here are some of the most common ones:
Certified Check Scams - This scam is often done on sellers of used cars over the Internet. A buyer informs that he/she wants to buy the car and pay with a cashier's check. When it comes to the last minute, the buyer brings some reasons that he/she needs to write the check for more money and have the seller wire him/her the difference. Then the check appears a fake one, and this fact can be discovered long after the seller has wired the money. Furthermore, the seller is responsible for covering the money for the fake check. In order to avoid check scams you can call the issuing bank before you accept the check and wait for the check to clear before you transfer the car into the buyer's name.
Bogus Escrow Services - Online car sellers regularly use escrow services to collect and verify payment from a buyer. The money is held by the service until all parties are pleased with the sale. Assure you check out an escrow service, as there have been some cases of escrow fraud.
False Auctions - According to the Federal Trade Commission, the most common frequently Internet fraud occurs on auction sites. Research the buying history in details and never ship the vehicle before the money has been received.
One of the best ways to avoid most auto scams is not to transfer ownership of your car until you have the cash in your hand. You either get cash from the buyer or wait for the cashier's check to clear. Never take personal checks and allow buyers to pay the car off over time. To avoid car scams follow these few precautions and your car-selling experience will go smoothly.