Used Car Scams to Avoid When Buying from a Private Seller

The used car market can offer real savings—but used car scams are also on the rise, especially in private party transactions. From fake vehicle histories to deposit fraud, scammers are using increasingly sophisticated tactics. Here are smart ways to avoid getting scammed when buying from a private seller.

Trust Your Instincts

• If a deal feels too good to be true, it probably is. Scammers often use unbelievably low prices to lure buyers into a trap.
• Pay attention to your gut feeling. If the seller seems evasive, rushed, or overly pushy, consider walking away.

Meet in Person and Inspect Before Purchasing

• Avoid sellers that are not from the area they claim.  If the seller shows up with a car that has California plates and the meeting is in Ohio be sure to gauge why the car is not local to the area. 
• Avoid sellers who refuse to meet at a public location or allow you to inspect the vehicle before purchase.

Research the Seller

• Verify the seller’s contact information, including their name, phone number, and email address. A quick online search can reveal whether their details are linked to scams or fraudulent activity.  Most identities will show up online on people search databases. 
• Be wary of sellers who use disposable phone numbers or vague email addresses or information that cannot be found on the internet.  If you cannot verify who the seller is, it might be best to avoid this transaction.

Investigate the Vehicle

• Use services that provide vehicle history reports or the National Insurance Crime Bureau (nicb.org) to check for theft record and total loss record.  These reports can reveal accidents, salvage titles, and odometer discrepancies.
• Inspect the VIN (Vehicle Identification Number) to ensure it matches the car’s paperwork. Scammers may use stolen VINs (a practice known as car cloning) to disguise stolen vehicles. Also Google the VIN.  If involved in a scam you might find the real seller of the car or information on past accidents. 

Watch Out for Title Washing

• Title washing occurs when scammers transfer a car with a salvage title to another state, where the damage designation is removed. This makes the car appear undamaged.
• A thorough VIN check can help you identify title discrepancies. Vehicle history reports and NICB are tools used to verify the accuracy of the title.

Tip: Reporting can take time to appear in various databases.  If a car was recently declared totaled or stolen it might not have appeared yet in the database, you are using.  A thorough inspection of the car is still a great way to help find potential problems. 

Be Cautious of Deposit Scams

• Be very cautious of sending money upfront to “hold” a vehicle. Scammers often disappear once they receive the deposit.
• Also be cautious of a seller that wants a deposit after you agreed to the sale and will not complete the transaction until a later date.  In this scam the seller takes your deposit and never shows up for the actual sale. 
• Pay only after inspecting the car and confirming the deal in person.

Beware of Odometer Fraud

• Scammers may roll back odometers to make a car appear less used. Look for inconsistencies in mileage records on vehicle history reports.
• Inspect the car for signs of wear and tear that don’t match the displayed mileage, such as worn pedals or a heavily used interior.  Taking steps to look for signs of wear can aid in car buying fraud prevention.

Avoid Marketplace Guarantees

• Scammers often claim that a car sale is “guaranteed” by services like eBay Motors or PayPal. These platforms do not provide such guarantees for private transactions.
• If a seller insists on using an escrow service, ensure it’s a legitimate and well-known company.

Question “Minor Repair” Discounts

• Be wary of sellers offering steep discounts for minor repairs. If the issue is truly minor, the seller could easily fix it themselves. A seller that does not fix minor repairs may have also cut corners on vehicle upkeep and maintenance. 
• The discounted price may be hiding significant mechanical issues or extensive damage.

Verify Ownership

• Ensure the seller’s name matches the title. If the title is held by a third party, such as a bank, verify the process to transfer ownership legally.
• Ask to see the seller’s driver’s license and confirm their identity.

Use Safe Payment Methods

• Avoid wire transfers, prepaid debit cards, or cash transactions. These methods leave no paper trail and are often irreversible.
• Opt for a secure payment method, such as a certified check or bank transfer, and verify the payment with your bank.

Use Professional Assistance

• If you’re unsure about a car’s condition or history, hire a professional mechanic for a pre-purchase inspection (PPI).
• My Car Insight offers concierge services to help buyers verify car history, negotiate pricing, and identify potential scams.

Final Thoughts

Buying a used car requires diligence and caution, but following these tips can help you avoid used car scams and make a safe, informed purchase. If you ever feel uncertain about a deal, consult a trusted professional or consider using My Car Insight’s expert services to guide you through the process.