Selling a car online can bring a better price than a dealer trade-in.
It also puts your phone number and your car in front of strangers, and some of them are scammers.
The Federal Trade Commission has warned about two tricks that target private sellers again and again.
One uses a fake check for more than your asking price.
The other pushes you to buy a vehicle history report from a website the so-called buyer picks.
This guide explains how both scams work, the warning signs to watch for and how to get paid safely.
It is based on FTC consumer alerts, including Fake check scam targets online car sellers.
Why private sellers are a target
When you list a car, you share details a scammer can use.
The ad shows the make, the model, the price and a way to reach you.
You are also eager to sell, and that eagerness is exactly what these schemes count on.
The messages often sound friendly and reasonable.
Many of them repeat the same script, sent to sellers in many different states.
Knowing the script in advance is the easiest way to avoid becoming part of it.
Scam 1: The overpayment check
According to the FTC, this scam starts with a message from someone who says they want your car.
They say they are not local and cannot look at the car in person.
Next, they send a check as a deposit to hold the car.
The check is for more than you expected.
The buyer says the extra amount was an accident and asks you to send it back.
If you do, the buyer and the money are gone.
Every part of the story was a lie from the start.
Why the money seems real
The FTC explains that fake checks generally look just like real checks, even to bank employees.
They are often printed with the names and addresses of real financial institutions.
Some are real checks written on accounts that belong to identity theft victims.
By law, banks have to make deposited funds available quickly.
So the money may show up in your account within days.
That does not mean the check is good.
It can take the bank weeks to discover a fake check.
When it does, it takes the money back out of your account.
If you already sent money to the scammer, you will have to repay the bank as well.
The rules that stop this scam
- Do not accept a check for more than the selling price. The FTC says you can bet it is a scam.
- Never send money to anyone who says they overpaid you by check.
- Never use money from a check to buy gift cards, money orders or cryptocurrency for someone else.
- Never use money from a check to wire money to a buyer or to anyone they name.
- Do not rely on money from a check unless you know and trust the person you are dealing with.
Once you send money by gift card, wire transfer or cryptocurrency, the FTC says it is like handing over cash.
It is very hard to get that money back.
Scam 2: The vehicle history report trick
The FTC described this one in an alert about people who list cars for sale online.
A supposed buyer calls or texts and says they are interested in the car.
But first, they want to see a vehicle history report.
They ask you to get the report from one specific website.
That site asks for some of your information and a credit card payment.
In the cases the FTC described, the fee was about $20.
You send the report to the buyer and never hear from them again.
What is really going on
The FTC warns that the site may be a way to collect your personal information.
That can include your credit card account number.
The site may also belong to a lead generator, a company that sells your details to others for marketing.
Some of these sites sent sellers to web addresses that ended in vin.
That ending sounds like it relates to a vehicle identification number, but it does not.
According to the FTC, it was meant for websites about wine, since vin is the French word for wine.
So think twice before doing car business on a site you have never heard of, whatever its address looks like.
A safer way to share history
A real buyer can check a car's history on their own, starting with the VIN.
The FTC points people to VehicleHistory.gov, run by the National Motor Vehicle Title Information System.
That system is known as NMVTIS, and the site lists its approved providers of history reports.
Reports from other providers sometimes add details like accident and repair history.
If someone asks you to use one particular site, the FTC advice is to ask why and think twice.
A buyer who gets pushy when you suggest another source is giving you a warning sign.
Check a company before you trust it
Sometimes a buyer names a payment service, an escrow company or a report site you do not know.
The FTC suggests looking up what other people say about a company online.
Search its name together with words like complaint, review, rating or scam.
A few minutes of searching can reveal a pattern that one friendly message hides.
Type the address of a known service yourself instead of clicking a link the buyer sends.
Warning signs in buyer messages
- The buyer cannot see the car but wants to pay or send a deposit right away.
- The payment arrives as a check for more than your asking price.
- You are asked to send back the difference by wire, gift card or cryptocurrency.
- The buyer insists you buy a history report from a site they choose.
- The buyer will not explain why that site is the only one they accept.
One of these signs alone is reason to slow down.
Two or more together usually mean you should stop replying.
How to get paid safely
The FTC suggests considering an escrow or online payment service when you sell a car online.
Whatever method you choose, a few habits help protect you.
- Agree on one price, and accept payment for exactly that amount.
- Keep the car and the signed title until the payment has truly cleared, not just appeared.
- Remember that fake checks can look like cashier's checks and money orders too.
- Ask your own bank how to confirm a payment before you hand over the car.
- Keep copies of every message, the bill of sale and any payment records.
If you already sent money
Act fast, because the FTC steps depend on how you paid.
- Gift card: contact the company that issued the card right away. Say it was used in a scam and ask for a refund.
- Wire transfer: call the wire transfer company, report the fraud and ask for the transfer to be reversed.
- Money order: contact the company that issued it to try to stop payment.
- Cryptocurrency: contact the company you used, report the fraudulent transaction and ask to reverse it if possible.
If you mailed a money order, the FTC also suggests contacting the Postal Inspection Service.
Reversals are not guaranteed, so speed matters more than anything else.
Where to report it
Report a fake check scam or a fake history report site to the FTC at ReportFraud.ftc.gov.
For fake checks, the FTC also lists the Postal Inspection Service and your state attorney general.
Reports help investigators connect cases and warn other sellers.
Quick checklist before you hand over the keys
- The payment is for the exact sale price, not a penny more.
- You have not sent any money back to the buyer.
- Your bank has confirmed the funds, not just shown them in your balance.
- You did not buy a report from a website the buyer chose.
- You kept copies of the messages and the bill of sale.
Selling a car privately can be smooth and safe.
A little healthy doubt keeps the money and the car where they belong.
Sources and Further Reading
- Federal Trade Commission: Fake check scam targets online car sellers. How the overpayment scam works on car sellers and the escrow advice.
- Federal Trade Commission: How To Spot, Avoid, and Report Fake Check Scams. Why fake checks look real, how banks handle them and what to do if you sent money.
- Federal Trade Commission: Steering clear of vehicle history report scams. The paid report trick, lead generators and how to check a company.
- VehicleHistory.gov (NMVTIS). The federal title information system and its approved report providers.
- ReportFraud.ftc.gov. Where to report a fake check or a fake history report site.